Core Viewpoint - Biofrontera Inc. has divested its US license for Xepi (ozenoxacin) Cream, 1% to Pelthos Therapeutics Inc., receiving a total of up to $10 million, which is expected to strengthen its balance sheet and support its path to profitability [1][2][5]. Financial Summary - The divestiture includes an initial payment of $3 million at closing, an additional $1 million upon availability of the commercial product, and up to $6 million in milestone payments tied to achieving $10 million and $15 million in annual net revenues for Xepi [1][5]. - The transaction is anticipated to bolster Biofrontera's cash position, aiding in funding its operations towards profitability [5]. Business Focus - Biofrontera specializes in photodynamic therapy (PDT) and is focused on expanding the indications for its product Ameluz® for the treatment of actinic keratosis (AK) and potentially other conditions [2][3]. - The company is also involved in clinical trials to extend the use of its products for treating non-melanoma skin cancers and moderate to severe acne [3]. Product Information - Xepi (ozenoxacin) Cream, 1% is a topical non-fluorinated quinolone that is FDA-approved for treating impetigo, a common skin infection caused by Staphylococcus aureus or Streptococcus pyogenes, with no known antibiotic resistance [2].

Core Viewpoint - Pelthos Therapeutics has acquired U.S. commercialization rights to Xepi® (ozenoxacin) Cream, a topical treatment for impetigo, marking a significant step in addressing unmet patient needs in pediatric dermatology [1][4][8] Acquisition Details - Pelthos will pay a total of $4.2 million upfront for the acquisition, consisting of $3.0 million to Biofrontera and $1.2 million to Ferrer, with additional payments tied to commercial availability and sales milestones [3][4] - The acquisition is expected to enhance Pelthos's portfolio, which is anchored by its existing product ZELSUVMI™ [8][10] Market Context - Impetigo affects approximately 3 million people annually in the U.S., predominantly children aged 2 to 5, highlighting a significant market opportunity for Xepi [5][8] - The rise of bacterial resistance to common topical antibiotics has created a pressing need for effective alternatives, positioning Xepi as a critical treatment option [6][8] Financing Details - Pelthos has secured $18 million through private convertible notes financing, which will support the acquisition and re-launch of Xepi, as well as the commercialization of ZELSUVMI [2][7][9] - The notes will bear an interest rate of 8.5% per annum and are convertible at an initial price of $34.442 [7][10] Strategic Implications - The acquisition and financing are seen as strategic moves to bolster Pelthos's commercial growth and leverage its existing infrastructure to promote multiple innovative brands [4][10] - The company plans to re-launch Xepi in late 2026, aiming to provide a novel treatment option in the pediatric dermatology space [4][8]

Core Viewpoint - Pelthos Therapeutics has acquired U.S. commercialization rights to Xepi® (ozenoxacin) Cream, a topical treatment for impetigo, marking a significant step in addressing unmet patient needs in pediatric dermatology [1][4][8] Acquisition Details - Pelthos will pay a total of $4.2 million upfront for the acquisition, consisting of $3.0 million to Biofrontera and $1.2 million to Ferrer, with additional payments tied to commercial availability and sales milestones [3] - The acquisition is expected to enhance Pelthos's portfolio, which is anchored by its existing product ZELSUVMI™ [8] Market Context - Impetigo affects approximately 3 million people annually in the U.S., predominantly children aged 2 to 5, highlighting a significant market opportunity for Xepi [5][8] - The need for effective alternatives to traditional treatments is underscored by rising bacterial resistance, particularly to commonly used topical antibiotics [6] Financing Details - Pelthos has secured $18 million through private convertible notes financing, which will support the acquisition and re-launch of Xepi, as well as the commercialization of ZELSUVMI [2][7][10] - The notes will bear an interest rate of 8.5% per annum and are convertible at an initial price of $34.442 [7] Strategic Implications - The acquisition of Xepi is seen as a strategic move to leverage Pelthos's existing commercial infrastructure and expand its product offerings in the pediatric and dermatology markets [4][10] - The company aims to re-launch Xepi in late 2026, positioning it as a critical treatment option amid growing concerns over antibiotic resistance [4][8]