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Dermatology Co.'s Target Price Much Higher Than Current
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The biopharma's strategic marketing campaign "should continue growing U.S. sales to current and new customers," noted a ROTH Capital Partners report.

Biofrontera Inc. (BFRI:NASDAQ) "is on the right track with respect to its marketing campaign for Ameluz," as evidenced by recent management meetings with investors, purported ROTH Capital Partners analyst Dr. Jonathan Aschoff in a September 14, 2022 research note.

ROTH's $20 per share target price on Biofrontera implies a significant potential return, given that the biopharma is currently trading at around $1.04 per share.





Ameluz is the biopharma's aminolevulinic acid hydrochloride topical gel, 10%, indicated for use with photodynamic therapy as a treatment for mild to moderate actinic keratoses on the face and scalp.

"Commercial execution is clearly the main focus for investors, as the clinical data set for Ameluz speaks for itself," wrote Aschoff.

ROTH's $20 per share target price on Biofrontera implies a significant potential return, given that the biopharma is currently trading at around $1.04 per share.

Aschoff provided the highlights of Biofrontera's sales and marketing strategy.

One, the company's sales team targets dermatologists in residency instead of long practicing ones who are likely less open to adopting new treatments.

The main incentive for these new doctors is insurer reimbursement for Ameluz, the photodynamic lamp, and photodynamic treatments. Dermatologists earn $316 in profit with each Ameluz photodynamic procedure when lesion debridement is performed. This is after paying the monthly payment of as little as $250 to lease Biofrontera's photodynamic treatment machine. With cryotherapy, the existing competing treatment, the total reimbursement per visit is $173.

Two, Biofrontera is targeting dermatologists currently using Levulan phototherapy, which comprises 2% of the actinic keratosis market, rather than those employing cryotherapy.

"Full penetration of this segment would alone represent more than $100 million in Ameluz sales," Aschoff noted.

Ameluz's robust, durable efficacy is a key reason for Levulan users to switch. With Ameluz, clearing of actinic keratoses occurs after two treatments in about 90% of patients, and the drug treats underlying as well as visible lesions. Also, the red light emitted by Biofrontera's phototherapy lamp penetrates lesions better than the blue lamp used with Levulan.

Three, Biofrontera plans to grow its sales team to 55 representatives from 32 over the next two years, given the company's recent push to increase each current rep's sales. The biopharma now has about 900 customers, 600–700 of which purchase Ameluz quarterly.

Four, Biofrontera recently hired a national sales director to help carry out the company's commercial initiatives. Gerard DiGirolamo brings to the biopharma 25 years of experience in growing sales forces and pharmaceutical sales in dermatology.

ROTH rates Biofrontera Buy.

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1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

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Disclosures For Roth Capital Partners., Biofrontera Inc., September 14, 2022

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from Biofrontera, Inc.. ROTH makes a market in shares of Biofrontera, Inc. and as such, buys and sells from customers on a principal basis. ROTH and/or its employees, officers, directors and owners own options, rights or warrants to purchase shares of Biofrontera, Inc. stock.

Shares of Biofrontera, Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities. Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has managed or co-managed a public offering for Biofrontera, Inc.. Roth or its affiliates beneficially own(s) 1% or more of an equity security of Biofrontera, Inc.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report.

Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH.

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