By Josh Beckerman
Biofrontera Inc. experienced a significant 56% increase in its shares on Tuesday following key strategic moves. The company restructured its supply agreement with former parent Biofrontera AG and introduced a private placement opportunity amounting to $16 million. Additionally, Biofrontera Inc. opted to withdraw a previous filing for a public offering of stock and warrants.
Positive Market Response
As a result of these transformative decisions, shares of Biofrontera Inc. were recently valued at $1.17, indicating a notable upswing despite a 57% decline earlier in the year. Trading volume exceeded 26.9 million shares, significantly surpassing the 65-day average of 234,781 shares.
Strengthened Positioning and Strategic Shifts
Specializing in dermatologic drugs, Biofrontera Inc. highlighted adjustments to the transfer price it pays for Ameluz. The company managed to reduce the price from 50% to 25% for all purchases slated for 2024 and 2025, effective immediately. Furthermore, as of June 1st, the company will assume control over all clinical trials involving Ameluz in the U.S.
Anticipated Benefits
By taking control of clinical trials and optimizing costs, Biofrontera Inc. anticipates enhanced operational efficiency. This strategic positioning is expected to result in expanded indications in the label and accelerated revenue growth.
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