Biofrontera(US:BFRI)2023-03-09 04:09Financial Data and Key Metrics Changes - Total revenues for 2022 were $28.7 million, an increase of 19% from $24.1 million in 2021, marking record annual revenues for the company [17][99] - Adjusted EBITDA for 2022 was negative $18.1 million, compared to negative $12.6 million in 2021, primarily due to higher selling, general, and administrative expenses [18][96] - Cash and cash equivalents at year-end 2022 were $17.2 million, with investments totaling $10.5 million [6] Business Line Data and Key Metrics Changes - Cost of revenue was $15.2 million in 2022, up 19% from 2021, with expectations that costs will decrease as revenues grow [3] - The average revenue per sales rep in 2022 was approximately $900,000, with projections to reach cash flow positive at around $1.1 million to $1.2 million in sales per rep [12][57] - The company plans to expand its sales force to between 50 and 55 reps over the next two years, with a focus on optimizing the current team and adding new members [13][27] Market Data and Key Metrics Changes - The treatment of actinic keratosis (AK) represents a $4 billion market, with the company's target market for photodynamic therapy (PDT) for AKs estimated at $440 million [28] - The company holds approximately 30% of the PDT market and has grown its share in the target market by about 12% [29] - The company is addressing sales territory challenges and has seen strong order and shipping volumes in early 2023, indicating ongoing customer demand [22] Company Strategy and Development Direction - The company is focused on expanding its commercial infrastructure, including the addition of an inside sales function and stronger data analytics tools [8][25] - Investments are being made in the sales force, with plans to add a new regional team in 2023 [9][27] - The company aims to achieve cash flow positive status within approximately two years, driven by the growth of its Ameluz PDT therapy [4][57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2023, citing a strong foundation for growth and increased education initiatives to drive demand for PDT therapy [8][23] - The company is committed to maintaining a balance between growth and financing costs to protect shareholder value [6][36] - Management noted that future label expansions or new indications are not necessary to achieve growth targets for the next couple of years [52] Other Important Information - The company completed its first full year as a publicly traded entity in 2022, achieving record revenues and increasing market share without expanding its sales force [35] - The company is working on label expansion opportunities for its products, including clinical trials for additional treatment areas [30][33] Q&A Session Summary Question: How many doctors using Ameluz are using three tubes with the Excel lamp? - The Excel lamp has not yet been launched in the U.S. due to supply chain challenges, and it is unclear how many doctors have it [38] Question: What are the biggest headwinds to hiring or maintaining salespeople? - The company experiences a turnover rate of 25% to 30%, which is better than the industry average, and is focused on making the workplace attractive [61] Question: What was the share count at the end of the fourth quarter? - There are approximately 26.7 million shares outstanding [79]