| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 0.28 | -96 |
| Graham Formula | n/a |
Biofrontera AG (B8F.DE) is a Germany-based biopharmaceutical company specializing in dermatological treatments. Founded in 1997 and headquartered in Leverkusen, Biofrontera focuses on the research, development, and commercialization of innovative therapies for skin conditions, including actinic keratosis and antibiotic-resistant bacterial infections. Its flagship product, Ameluz, combined with the BF-RhodoLED lamp, is a photodynamic therapy approved for treating mild to moderate actinic keratosis on the face and scalp. The company also markets Belixos for sensitive skin and Xepi for impetigo caused by antibiotic-resistant bacteria. Biofrontera operates primarily in the U.S., Europe, and Israel, leveraging strategic partnerships like its collaboration with Maruho Co., Ltd. to expand its market reach. With a market cap of approximately €20.7 million, Biofrontera remains a niche player in the specialty dermatology sector, targeting unmet medical needs with its proprietary therapies.
Biofrontera AG presents a high-risk, high-reward investment opportunity in the specialty dermatology market. The company's revenue of €32.2 million in FY 2023 and a narrow net loss of €369,000 suggest improving financial stability, though operating cash flow remains negative (-€1.9 million). Its beta of 0.638 indicates lower volatility compared to the broader market, which may appeal to risk-averse investors. However, the lack of profitability and reliance on a limited product portfolio (Ameluz and Xepi) pose significant risks. The company’s collaboration with Maruho Co. and expansion into new markets could drive growth, but competition from larger dermatology-focused biopharma firms and regulatory hurdles remain key challenges. Investors should weigh Biofrontera’s niche focus against its financial constraints and market competition.
Biofrontera AG competes in the specialized dermatology segment, where its primary advantage lies in its proprietary photodynamic therapy (Ameluz + BF-RhodoLED) for actinic keratosis—a market with limited competitors. The company’s focus on niche indications (e.g., field cancerization) allows it to avoid direct competition with broad-spectrum dermatology giants. However, its small scale (€32.2M revenue) limits R&D and marketing firepower compared to larger peers. Biofrontera’s partnership with Maruho enhances its distribution in Japan but does not mitigate its reliance on a single therapy for most revenue. The recent launch of Xepi (for impetigo) diversifies its portfolio but faces stiff competition from generics and branded antibiotics. While Biofrontera’s asset-light model reduces fixed costs, its lack of profitability and negative cash flow raise sustainability concerns. Its competitive edge hinges on maintaining regulatory exclusivity for Ameluz and expanding geographically, but pricing pressure in Europe and slower U.S. adoption remain headwinds.