| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 85.60 | 7203 |
| Intrinsic value (DCF) | 0.47 | -60 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 14.70 | 1154 |
Biofrontera AG is a Germany-based biopharmaceutical company specializing in dermatological treatments, particularly for actinic keratosis and other skin conditions. The company’s flagship product, Ameluz, is a photodynamic therapy (PDT) treatment used alongside its BF-RhodoLED lamp for treating mild to moderate actinic keratosis on the face and scalp. Biofrontera also markets Belixos, a cosmetic product for sensitive skin, and Xepi, an antibiotic-resistant bacterial treatment. With operations in the U.S., Europe, and Israel, Biofrontera collaborates with Maruho Co., Ltd. to expand its market reach. Founded in 1997 and headquartered in Leverkusen, Germany, Biofrontera operates in the competitive pharmaceutical sector, focusing on niche dermatological therapies. The company’s innovative approach to skin cancer and dermatological care positions it as a key player in medical dermatology, though its small market cap reflects its specialized focus and growth-stage status.
Biofrontera AG presents a high-risk, high-reward investment opportunity due to its niche focus on dermatological treatments. The company reported €32.2 million in revenue for FY 2023 but posted a net loss of €369,000, indicating ongoing financial challenges. With a market cap of just €52.2 million and negative operating cash flow (-€1.9 million), Biofrontera remains a speculative play. However, its innovative PDT technology (Ameluz + BF-RhodoLED) and strategic partnership with Maruho Co. provide growth potential in dermatology markets. Investors should weigh the company’s specialized product portfolio against its financial instability and competitive pressures in the pharmaceutical sector.
Biofrontera AG competes in the dermatology-focused pharmaceutical market, where differentiation relies on specialized treatments and regulatory approvals. Its competitive advantage lies in Ameluz, a photodynamic therapy approved for actinic keratosis—a market with limited direct competitors. However, the company faces challenges from larger dermatology and oncology-focused firms with broader portfolios and stronger financial backing. Biofrontera’s small scale limits its R&D and marketing capabilities compared to multinational pharmaceutical companies. Its partnership with Maruho Co. helps mitigate some distribution weaknesses, but reliance on a single flagship product (Ameluz) increases revenue concentration risk. The company’s focus on photodynamic therapy gives it a technological edge in treating actinic keratosis, but competitors with alternative treatment modalities (e.g., topical creams, immune therapies) pose threats. Biofrontera’s financial instability further weakens its competitive positioning, as it lacks the resources to aggressively expand or acquire complementary assets.