Biofrontera AG Secures Long-Term U.S. Market Presence Through Strategic Restructuring

In a significant move to bolster its foothold in the U.S. market, Biofrontera AG, a leading biopharmaceutical company specializing in dermatological drugs and medical cosmetics, has entered into a strategic restructuring agreement with its U.S. counterpart, Biofrontera Inc. This agreement, announced on June 30, 2025, is poised to ensure the long-term stability and commercial continuity of Biofrontera’s operations in the United States.

The restructuring agreement, which has been widely covered by financial news outlets such as Finanznachrichten and Seeking Alpha, involves Biofrontera AG acquiring a 10% equity stake in Biofrontera Inc. Additionally, Biofrontera AG will receive ongoing royalties ranging from 12% to 15% on U.S. sales of Ameluz®, a key product in its portfolio. This strategic move not only secures Biofrontera AG’s presence in the lucrative U.S. market but also provides a solid financial foundation for Biofrontera Inc.’s operations.

A pivotal aspect of this agreement is the $11 million investment backing, which will support Biofrontera Inc. in closing its funding round. This financial injection is expected to reduce the risks and costs associated with Biofrontera AG’s U.S. operations, while simultaneously enhancing investor confidence in Biofrontera Inc.

Under the terms of the agreement, Biofrontera Inc. will acquire all U.S. assets related to Ameluz® and RhodoLED®, including the New Drug Application (NDA) and associated patents from Biofrontera AG. This acquisition marks a significant shift in the royalty structure, reducing the effective royalty rate from a previous range of 25% to 35% of net sales to a more favorable 12% (and 15% above revenue of $65 million).

The restructuring agreement is further solidified by a binding Term Sheet, which outlines the future cooperation between Biofrontera AG and Biofrontera Inc. This Term Sheet will be translated into a comprehensive Transfer Agreement documentation, ensuring the long-term continuity of Biofrontera AG’s business activities in the U.S.

As of June 26, 2025, Biofrontera AG’s stock was trading at 2.28 EUR on the Xetra exchange, reflecting a recovery from its 52-week low of 2.08 EUR in December 2024. The strategic restructuring is anticipated to positively impact the company’s financial performance and market valuation in the coming months.

In summary, Biofrontera AG’s strategic restructuring agreement with Biofrontera Inc. represents a forward-looking approach to securing its U.S. market presence. By leveraging a combination of equity stakes, favorable royalty terms, and substantial financial backing, Biofrontera AG is well-positioned to enhance its global footprint and continue delivering innovative dermatological solutions to patients worldwide.