Biofrontera(US:BFRI)2024-03-18 16:13Financial Data and Key Metrics Changes - Total revenues for 2023 were $34.4 million, a growth of approximately 19% compared to $28.7 million for 2022, primarily driven by higher Ameluz sales volume and a restructured discount program [53][45] - Adjusted EBITDA for the fourth quarter of 2023 was negative $3.2 million, an improvement from negative $4.4 million for the fourth quarter of 2022, reflecting higher revenues partially offset by increased SG&A costs [35] - Net income for the fourth quarter of 2023 was $3.5 million or $1.65 per share, compared to a net loss of $2.8 million or a loss of $2.16 per share for the prior-year quarter [52] Business Line Data and Key Metrics Changes - The company placed 123 BF-RhodoLED lamps at physician offices during 2023, an increase of 86% from 66 in 2022, indicating strong adoption of Ameluz PDT [45] - Cost of revenues increased to $17.4 million for 2023 from $15.2 million in 2022, primarily driven by increased Ameluz volume [36] Market Data and Key Metrics Changes - The company expects to achieve two-digit growth in revenue compared to 2023 and anticipates being cash flow positive within approximately 12 to 18 months [62] - The company has secured financing of $8 million and expects another tranche of $8 million in Q2 2024 to support ongoing commercial activities and clinical development [28] Company Strategy and Development Direction - The company is optimizing its customer-facing teams and shifting resources from a sales force-focused organization to invest in marketing and support functions [46] - The company plans to launch the larger RhodoLED XL lamp in Q2 2024, which will allow treatment of larger skin areas, crucial for future growth [30] Management Comments on Operating Environment and Future Outlook - Management highlighted transformational changes in 2023 that have improved the company's status and future outlook compared to the previous year [76] - The company expects to maintain a growth trajectory similar to the past couple of years, with a compound annual growth rate (CAGR) of 22% since 2020 [73] Other Important Information - The company settled arbitration regarding the acquisition of the Xepi asset, removing significant liabilities from its balance sheet [29] - The U.S. Patent and Trademark Office granted a new patent related to a less painful PDT protocol, extending product protection until 2040 [47] Q&A Session Summary Question: What is the enrollment status for the acne trial? - Approximately 50% to 60% of patients are currently enrolled, with completion expected by the end of the year and data available in the middle of next year [38] Question: What about the peripheral AK study? - The enrollment is similar, with data expected slightly after the acne trial due to longer patient duration in the trial [64] Question: Any changes to the sales force and turnover? - The sales force has been slightly reduced to focus on growing other service functions, with current turnover being below the industry average [11][19] Question: What are the expectations for sales growth this year? - A reasonable target for sales growth is around 19%, consistent with the growth seen over the past couple of years [73]