Patent dispute burdens Biofrontera: $ 5 million on the game!
Patent dispute burdens Biofrontera: $ 5 million on the game!
The lawsuit of an American competitor against the Leverkusen company Biofrontera will turn out to be expensive. The accusation is serious: Biofrontera is said to have violated patents with its innovative red light lamp. Two procedures are already pending and the costs are estimated at around $ five million. This sum is halved because it is divided between Biofrontera in Germany and its subsidiary in Woburn, Massachusetts. It is expected that the patent dispute will take over the next one and a half years.
For Biofrontera, which wants to win market shares with the skin cancer ointment ointment, these two complaints are a bitter setback. According to the officer, Parlar de la Huerta, the company could fall back on liquid funds between one and three million euros by the end of the year. However, these funds should be sufficient to bridge the period by mid -2025 if a settlement of these legal disputes may be closer.
However,BIOFRONTERA is optimistic about the business trend in Europe. Pharma-AG can report sales growth of 18 percent in Germany. In this way, sales rose from three to three and a half million euros. In addition, European licenses show impressive growth of 61 percent, which underlines continued expansion in a decisive market. Positive developments are also seen from the cooperation with Leo Pharma and new sales partnerships that strengthen the market position of the products.
A clear step backwards, however, records Biofrontera in the American license business, where sales have decreased by 92 percent due to a changed storage policy. The turnover in the United States fell from almost 17.8 million to just 7.2 million euros. However, BioFrontera expects that new Ameluz products will be delivered to the Biofrontera Inc. in the fourth quarter.
Latest developments in the corporate structure
The corporate management has also taken steps to reduce dependence on the US market. In June, clinical research was transferred to Biofrontera Inc., which should not only lead to a reduction in costs, but also to better predictability of the expenses. This measure testifies to a strategic rethink towards a more sustainable expansion in Europe.
In Spain, on the other hand, business has developed less gratifyingly, where sales decreased by three percent to a good 900,000 euros. This happens despite the expiry period of a price decrees from 2022. In Great Britain, Biofrontera also only achieves moderate successes; A turnover of 465,000 euros is an increase of 30 percent, but is still low. Further efforts must be made here to increase sales, although initial successes are emerging due to an extended coverage in the NHS.
A positive aspect of the current company situation is the decline in legal and advisory costs by 1.5 million euros in the first half of 2024. The sales expenses were also reduced by over 300,000 euros. However, the total losses of Biofrontera are clear, with a minus of 3.6 million euros before taxes and depreciation. These declines are primarily due to the lower level of sales, which results from the storage policy of the Biofrontera Inc.
The financial challenges that Biofrontera faces are considerable, and the outcome of the ongoing lawsuit could have far -reaching consequences for the company. A quick action and strategic adjustments therefore seem essential to counter the challenges of patent disputes and to continue growing opportunities in Europe. For further information on the background of these developments, See the report on the report mobil.ksta.de .
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