Biofrontera(BFRI) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenues for 2024 reached $37.3 million, representing an annual growth of approximately 9.5% compared to$ 34.1 million in 2023 [16] - The net loss for 2024 was $17.8 million or$ 3.22 per diluted share, an improvement from a net loss of $20.1 million or$ 13.02 per share in 2023 [19] - Adjusted EBITDA for 2024 was negative $15.3 million, an improvement from negative$ 19.5 million in 2023, driven by increased sales and reduced SG&A expenses [19] Business Line Data and Key Metrics Changes - The company placed 52 RotoLite XL lamps in Q4 2024, totaling 100 lamps since the launch in June 2024, contributing to the overall strategy for Ameluz PDT [3] - The cost of revenues for 2024 increased to $18.6 million from$ 17.4 million in 2023, influenced by sales volume but offset by lower transfer prices [17] Market Data and Key Metrics Changes - The company achieved a 5% price increase for Ameluz in Q4 2024, with the tube priced at $363, which may have influenced forward buying behavior [41] - The transfer price for Ameluz was reduced from 50% to 25% for all purchases in 2024 and 2025, expected to positively impact gross margins in 2025 [7][39] Company Strategy and Development Direction - The company aims to become cash flow positive while managing expenses without sacrificing sales, emphasizing the importance of sales growth and marketing efforts [48] - Future plans include expanding the use of Ameluz beyond actinic keratosis to treat non-melanoma skin tumors, with new data expected to be submitted to the FDA [6] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another record year in 2025, supported by past investments and business plans [2] - The company is excited about the potential for Ameluz in treating moderate to severe acne, with ongoing phase two studies nearing completion [10] Other Important Information - Cash and cash equivalents as of December 31, 2024, were$ 5.9 million, a significant increase from $1.3 million at the end of 2023, attributed to strong growth and additional capital raised [20] - Inventory levels were reduced to$ 6.6 million from $10.9 million year-over-year, indicating improved inventory management [21] Q&A Session Summary Question: What was the Q4 2024 Ameluz unit growth year over year? - Answer: Approximately 2% [27] Question: Was there any sales force addition or attrition over 2024? - Answer: No, the number of salespeople remained approximately constant [29] Question: What is the acne enrollment number and data timing? - Answer: The enrollment number is 116, with potential for earlier trial conclusion [31] Question: How will the new transfer pricing impact gross margins in 2025? - Answer: The lower transfer price of 25% is expected to positively impact gross margins [39] Question: What was the percentage of the price increase in Q4? - Answer: There was a 5% price increase for Ameluz [41] Question: Will SG&A and R&D expenses continue to trend down in 2025? - Answer: SG&A is expected to hold steady, while R&D will remain stable compared to recent months [43][44]