Biofrontera Inc. Announces Key License Sale to Pelthos Therapeutics
In a strategic move to bolster its financial health, Biofrontera Inc. has announced the sale of its U.S. license for Xepi® (ozenoxacin) Cream, a topical antibiotic, to Pelthos Therapeutics Inc. for up to $10 million. This deal was structured to include an initial payment of $3 million upon closing, followed by an additional $1 million when the commercial product becomes available, and further milestone payments as Xepi® achieves specific sales targets.
Immediate Financial Benefits from the Sale
The agreement significantly enhances Biofrontera’s cash reserves, which is crucial for steering the company toward profitability. The proceeds from the sale are expected to support the ongoing development of Biofrontera’s photodynamic therapy (PDT) platform, as well as initiatives to introduce Ameluz® into new treatment areas.
Biofrontera's Future Growth Prospects
Dr. Hermann Luebbert, Chief Executive Officer and Chairman of Biofrontera, commented on the divestiture, stating, “This transaction not only strengthens our balance sheet but also sets the stage for accelerated growth. With the recent restructuring of our agreements and significant capital investments from leading healthcare funds, we can now intensify our efforts in marketing our PDT offerings and expand the therapeutic uses of Ameluz® beyond actinic keratosis.”
About Xepi® and Its Market Potential
Xepi® Cream, which comprises a non-fluorinated quinolone antibiotic, effectively combats bacterial infections, particularly impetigo, which is prevalent due to Staphylococcus aureus and Streptococcus pyogenes. The FDA has approved Xepi®, and to date, there is no known antibiotic resistance associated with its use. The unique qualities of Xepi® position it well in the dermatological market, making this an opportune time for Biofrontera to maximize its value prior to sale.
Company Overview
Biofrontera Inc. is at the forefront of biopharmaceutical innovation, focusing on the development and commercialization of therapies for dermatological issues through the utilization of PDT. The company’s flagship product, Ameluz®, is a combination drug-device treatment offered with the RhodoLED® lamp series for the treatment of actinic keratosis. Biofrontera is also actively conducting clinical trials aimed at extending the use of its therapeutic products to address non-melanoma skin cancers and severe acne.
Contact Information
For queries or further information, investors can contact Ben Shamsian from Lytham Partners at 646-829-9701 or via email at shamsian@lythampartners.com.
Frequently Asked Questions
What is the total value of the license sale to Pelthos Therapeutics?
The sale agreement with Pelthos Therapeutics is valued at up to $10 million, which includes various payment milestones.
How will the proceeds from the sale benefit Biofrontera?
The proceeds will enhance Biofrontera's cash position and support the growth of its PDT platform and expansion of Ameluz®.
What is Xepi® Cream used for?
Xepi® Cream is used for the treatment of impetigo, a skin infection caused by bacteria.
What are the future plans for Biofrontera’s products?
Biofrontera plans to expand its product offerings and indications for Ameluz® while focusing on enhancing its PDT franchise.
Who can be contacted for investor relations?
Investors can reach out to Ben Shamsian at Lytham Partners for any investor-related queries.
