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Biofrontera (BFRI) Stock Rallies 15% on Strong First Year of Public Trading

Ollie Martin - AskTraders News writer
Ollie Martin trader
Updated 8 Apr 2022

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Key points:

  • BFRI shares rallied 15% on a strong FY21 and equally optimistic guidance
  • Company hopes to increase Q122 revenue by over 100%
  • Strong work on Ameluz has resulted in an increasing market share

Shares of Biofrontera (NASDAQ: BFRI) soared in premarket trading on Friday, reaching gains beyond 15% as investors reacted positively to the company’s Q4 and FY22 earnings report. The biopharmaceutical company had a strong fiscal year as the company’s first year of public trading, following an IPO in October 2021. The company has been working almost solely on its ‘flagship’ product Ameluz for the treatment of actinic keratosis, a leading route to skin cancer. 

The company reported total Q4 revenue of $9.2M, a 7% increase from the previous year, with a total FY21 revenue of $24.1M, a 28% increase from last year. The company has a strong cash balance of around $24.5M as of December 31st, helped vastly by the $18M raised via an IPO, a further $15M from a subsequent private placement, and $13M from exercising outstanding warrants.

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Overall, Biofrontera had a solid first year of public trading, hence this morning’s premarket rally comes as no surprise. The company lay solid foundations for work on its flagship product Ameluz, and moved into 2022 with strong financials, momentum and a long-term strategic vision to “build shareholder value”, as put by Biofrontera CEO Erica Monaco.

The company managed to effectively navigate pandemic challenges, maintaining topline growth throughout 2021, with sales now recovering to pre-pandemic levels. Market share within the PDT segment also increased from 24% to 26%, with growth expected to continue throughout 2022. By continuing its focus on making Ameluz the leading PDT drug for the treatment of actinic keratosis, commercial avenues remain incredibly strong.

Looking ahead, Biofrontera are expecting a revenue increase of at least 30% in 2022, with Q1 revenue expected to be up by over 100% compared to Q121.

Ollie Martin - AskTraders News writer
Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.