Biofrontera Inc. Q4 FY2024 earnings call

• Placed 52 RotoLite XL lamps in Q4 2024, with 100 total between launch in June 2024 and end of 2024.
• Obtained FDA approval to use up to three tubes of Ameluz per treatment.
• Achieved significant results in phase three study of Ameluz photodynamic therapy for superficial basal cell carcinoma, expecting to submit new data to FDA in second half of 2024.
• Successfully negotiated restructuring of agreements with Biofrontera AG, reducing Ameluz transfer price to 25% for 2024 and 2025, and took control of clinical trials in USA.
• Recruited final patient in phase three study for multimodal actinic keratosis on trunk, neck, and extremities; FDA requested phase one pharmacokinetics study starting in January 2024.
• Phase two study for acne treatment near completion of patient recruitment.

In 2024, total revenues were $37.3 million, representing a 9.5% increase from 2023. For the fourth quarter of 2024, total revenues were $12.6 million, an 18.5% increase compared to Q4 2023. Cost of revenues for Q4 2024 was $5.3 million, down from $5.4 million in the prior year quarter. Full year 2024 cost of revenues increased to $18.6 million from $17.4 million in 2023, offset by lower transfer prices. Selling, general, and administrative expenses for Q4 2024 were $8.2 million, down from $9.1 million in Q4 2023. Full year 2024 SG&A expenses decreased by $5.3 million or 13.5% compared to 2023.

• Strongly believe 2025 will be another record year due to past investments, business plan, and execution.
• Excited about 2025 shaping up based on recent successes, continued improvements of Salesforce effectiveness, positive customer feedback, and heightened customer engagement.

Q: What was the Q4 2024 Ameluz unit growth year over year?

A: Approximately 2% Q: Was there any sales force addition or attrition over 2024?

A: Commercially, it held approximately constant Q: What's the acne enrollment number?

A: The enrollment number is 116, and may be able to conclude the trial a bit earlier Q: How could the more advantageous transfer pricing impact gross margins in 2025?

A: Transfer price is 25% through 2025, and in 2025 it'll be almost exclusively at the lower 25% transfer price Q: How much of a price increase was there in the fourth quarter and did it have effect on forward buying?

A: There was a 5% price increase, and some customers did a bit of buy-in before the price increase Q: Will SG&A and R&D continue to trend down in 2025?

A: For SG&A, expecting to hold approximately steady; R&D is also going to be stable compared to the last couple of months