BIOFRONTERA INC. IS NEGOTIATING FUNDAMENTAL CHANGES TO ITS COOPERATION WITH BIOFRONTERA AG

Rhea-AI Summary

Biofrontera Inc. (BFRI) has confirmed ongoing negotiations with Biofrontera AG regarding potential significant changes to their business relationship. The discussions center around two possible outcomes: a merger between the companies or modifications to their existing license and supply agreement. The potential agreement modifications could involve transferring certain rights and obligations from Biofrontera AG to Biofrontera Inc., along with a reduction in transfer pricing for Biofrontera Inc.'s US-licensed products. However, no definitive terms have been established yet, and any final agreement remains subject to various conditions and the execution of definitive agreements between both parties.

Positive

• Potential reduction in transfer pricing for US-licensed products could improve margins
• Possible acquisition of additional rights and obligations could strengthen BFRI's market position
• Potential merger could create operational synergies and cost efficiencies

Negative

• No definitive terms established yet, creating uncertainty
• Multiple conditions need to be met before any agreement can be finalized
• Potential merger could face regulatory and integration challenges

WOBURN, Mass., June 11, 2025 (GLOBE NEWSWIRE) -- Biofrontera Inc. (Nasdaq: BFRI), a biopharmaceutical company focused on the development and commercialization of photodynamic therapy (PDT), confirms a disclosure by the Management Board of Biofrontera AG on June 10, 2025, according to which the two companies are in negotiations regarding a possible combination of the two companies or an adjustment of the license and supply agreement between them. The latter could result in the transfer of certain rights and obligations from Biofrontera AG to Biofrontera Inc. and a reduction in the transfer price for Biofrontera Inc.’s licensed products sold in the US.

The terms of any such agreement or agreements have not yet been established and are subject to numerous conditions, including the negotiation and execution of definitive agreements between the companies.

About Biofrontera Inc.

Biofrontera Inc. is a U.S.-based biopharmaceutical company specializing in the treatment of dermatological conditions with a focus on PDT. The Company commercializes the drug-device combination Ameluz^® with the RhodoLED^® lamp series for PDT of AK, pre-cancerous skin lesions which may progress to invasive skin cancers. The Company performs clinical trials to extend the use of the products to treat non-melanoma skin cancers and moderate to severe acne. For more information, visit www.biofrontera-us.com and follow Biofrontera on LinkedIn and Twitter.

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, as amended. These statements include, but are not limited to, statements relating to Biofrontera's commercial opportunities and the commercial success of its licensed products. We have based these forward-looking statements on our current expectations and projections about future events. Nevertheless, actual results or events could differ materially from the plans, intentions and expectations disclosed in, or implied by, the forward-looking statements we make. These risks and uncertainties, many of which are beyond our control, include, but are not limited to: the impact of any extraordinary external events; any changes in the Company’s relationship with its licensors; the ability of the Company’s licensors to fulfill their obligations to the Company in a timely manner; the Company’s ability to achieve and sustain profitability; whether the current global disruptions in supply chains will impact the Company’s ability to obtain and distribute its licensed products; changes in the practices of healthcare providers, including any changes to the coverage, reimbursement and pricing for procedures using the Company’s licensed products; the uncertainties inherent in the initiation and conduct of clinical trials; availability and timing of data from clinical trials; whether results of earlier clinical trials or trials of Ameluz^® in combination with BF-RhodoLED and/or RhodoLED XL in different disease indications or product applications will be indicative of the results of ongoing or future trials; uncertainties associated with regulatory review of clinical trials and applications for marketing approvals; whether the market opportunity for Ameluz in combination with BF- RhodoLED and/or RhodoLED XL is consistent with the Company’s expectations; the Company’s ability to retain and hire key personnel; the sufficiency of cash resources and need for additional financing; and other factors that may be disclosed in the Company’s filings with the Securities and Exchange Commission (the “SEC”), which can be obtained on the SEC’s website at www.sec.gov. Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are made and reflect management’s current estimates, projections, expectations and beliefs. The Company does not plan to update any such forward-looking statements and expressly disclaims any duty to update the information contained in this press release except as required by law. 

Contact:
Investor Relations
Andrew Barwicki
1-516-662-9461
ir@bfri.com

FAQ

What are the key changes being negotiated between Biofrontera Inc. (BFRI) and Biofrontera AG?

The companies are discussing either a potential merger or modifications to their license and supply agreement, including possible transfer of rights and reduced transfer pricing for US-licensed products.

How would the potential changes affect BFRI's product pricing in the US market?

The negotiations include potential reductions in transfer pricing for Biofrontera Inc.'s licensed products sold in the US market, which could improve profit margins.

What conditions need to be met for the Biofrontera Inc. (BFRI) agreement to be finalized?

The agreement requires negotiation and execution of definitive agreements between both companies, along with meeting various unspecified conditions.

What rights could be transferred from Biofrontera AG to Biofrontera Inc. (BFRI)?

The specific rights and obligations that could be transferred from Biofrontera AG to Biofrontera Inc. have not been disclosed in the announcement.

When will the negotiations between BFRI and Biofrontera AG be completed?

No timeline for completing the negotiations has been provided in the announcement.