Biofrontera AG: BIOFRONTERA REPORTS RESULTS FOR THE FIRST NINE MONTHS OF 2025

Leverkusen (pta022/28.11.2025/11:00 UTC+1)

Biofrontera AG (ISIN: DE000A4BGGM7), an international biopharmaceutical company, today announced its financial results for the first nine months ended September 30, 2025.

Key Financial Figures and Business Performance for the First nine months of 2025 (unaudited)

"Biofrontera continues to deliver outstanding growth in the markets served by its own sales force, achieving an increase of more than 18.4% by the end of September. Overall, the company recorded total growth of 14.8%, with particularly strong performance in Germany, where sales have grown by over 20% for the third consecutive year. This solid top-line development, combined with significant cost reductions, has led to a remarkable improvement in EBITDA — from a negative EUR 4,460 thousand at the end of September 2024 to a positive EUR 1,837 thousand at the end of September 2025.

Although sales in EU markets served by distributors declined compared to last year due to their two-year purchasing seasonality, the growth achieved in markets covered by our own sales force, together with the revenue generated in the US during the first five months of the year, fully offset this reduction. In addition, the restructuring of the commercial agreement with our partner Biofrontera Inc. at the end of June, along with the cost-saving measures implemented throughout the year, have significantly strengthened the company's EBITDA, confirming a solid and sustained profitability trend", commented Pilar de la Huerta, CFO of Biofrontera AG, on the nine-month results released today.

Biofrontera reported total revenues of EUR 12,315 thousand for the period from January 1 to September 30, 2025, compared to EUR 10,724 thousand in the first nine months of 2024, representing a 14.8% increase.

In Germany, revenues increased from EUR 5,497 thousand to EUR 6,684 thousand during the reporting period, representing a 21.6% increase. The outstanding performance of Biofrontera in its home market during the last three years, positions the company as the undisputed leader in the PDT market with 73% of market share. The product has successfully adapted to patient needs and market conditions through continuous adjustments.

In Spain, revenues are growing for the first time in the past three years, increasing from EUR 1,185 thousand last year to EUR 1,268 thousand in the first nine months of the current year, representing a 7% rise. Biofrontera has also become the market leader in the PDT segment in Spain, with a market share exceeding 51%

The direct sales business in the United Kingdom achieved 13.2 % growth, reaching EUR 788 thousand, reflecting a growing and stable growth tendency.

With European license partners, Biofrontera generated revenue of EUR 442 thousand in the first nine months of 2025, compared to EUR 1,164 thousand in the same period of 2024, representing a significant decrease of 62%. Due to the structure of our license agreements, these markets experience biannual fluctuations, as most partners place large orders every two years to cover their market needs. This results in significant revenue peaks in one year, followed by sharp declines in the next. The current year reflects such a down cycle, while we expect a substantial increase next year, consistent with the pattern observed in the previous cycle. Because of these fluctuations, the figures cannot be used to accurately assess underlying market performance, although we know that the overall trend remains positive and growing.

As already reported in the previous statement, the Group signed on June 30th, 2025, a binding term sheet under which it committed to transfer most of the assets and liabilities associated with the U.S. market to Biofrontera Inc. As consideration, the Group will receive a percentage of Biofrontera Inc.'s shares and a monthly earn-out payment of 12% or 15% of its sales, depending on the annual sales volume, during the life of the patents.

This earn-out will apply to the sales generated by Biofrontera Inc. once the inventory it held as of the end of May 2025 has been sold, as those products were commercialized under the previous commercial terms agreed between both companies. The effective date of the new conditions was June 1st, 2025.

Therefore, from that date onwards, the revenues from the U.S. no longer reflect Ameluz and lamp sales based on the transfer price agreed under the prior commercial agreement, but rather the earn-out related to the new arrangement.

During the reporting period, Biofrontera Inc. has mainly sold Ameluz from the stock it held at the end of May, which was practically depleted by September 30th, 2025. Consequently, we expect that from October onwards, most of the Ameluz sold by Biofrontera Inc. will be subject to the terms of the new agreement.

As a result of the above, sales to Biofrontera Inc. amounted EUR 3,120 thousand, compared to EUR 2,064 thousand in the previous year. This apparent increase is due to the accumulated growth as of June 2025, since when analyzing the third quarter of the year, we observe a reduction in revenues — from EUR 1,024 thousand in Q3 2024 to EUR 620 thousand in Q3 2025.

On the cost side, research and development expenses decreased by 36% to EUR 2,929 thousand during the reporting period compared to EUR 4,583 thousand in the prior-year period. The reason for this decrease was the transfer of the clinical trials program effective date June 1st, 2024, and the cost reduction policy implemented in the company. General administrative expenses amounted to EUR 1,152 thousand in the first nine months of 2025, representing a total decrease of EUR 2,124 thousand compared to the prior-year period (EUR 3,276 thousand). This decline is mainly due to the reversal of provisions no longer required for legal disputes with SunPharma, following the binding agreement on the strategic restructuring of the collaboration between Biofrontera AG and Biofrontera Inc signed on June 30th, 2025. Sales and marketing expenses amounted to EUR 4,663 thousand in the first nine months of 2025, compared to EUR 4,995 thousand in the prior-year period. Although the company is growing more than 18% in the markets were Ameluz is marketed by its own salesforce, the sales and marketing expenditure has decreased 7.% due to the strong cost cutting policy implemented in the company.

The Group's EBITDA increased from EUR -4,460 thousand to EUR +1,837 thousand in the first nine months of 2025, showing a remarkable improvement of the result. EBIT also showed a significant improvement going from EUR -5,063 thousand to EUR +1,181 thousand. These results are attributable to the good performance of revenues jointly with the reduction of cost.

Cash and cash equivalents amounted to EUR 3,460 thousand as of September 30, 2025 (December 31, 2024: EUR 3,124 thousand)

Outlook

The Company published new sales and EBITDA guidance on August 1, 2025, reflecting the newly agreed terms signed June 30th. This guidance indicated a sales range for 2025 of between EUR 17,000 thousand and EUR 20,000 thousand, and an EBITDA range of between EUR 1,500 thousand and EUR 3,500 thousand. This guidance remains valid as of today.

The revised forecasted key performance indicators are as follows:

Based on the current 2025 business plan, the Group will have sufficient liquidity to meet all obligations for an additional 12 months from the date of preparation. Assuming expenses and revenues develop as planned, the Group expects to have cash and cash equivalents of between 1 and 3 million EUR as of December 31, 2025.

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Emitter:	Biofrontera AG Hemmelrather Weg 201 51377 Leverkusen Germany
Contact Person:	Investor Relations
Phone:	+49 (0) 214 87 63 20
E-Mail:	ir@biofrontera.com
Website:	www.biofrontera.com
ISIN(s):	DE000A4BGGM7 (Share)
Stock Exchange(s):	Regulated Market in Dusseldorf, Frankfurt; Free Market in Berlin, Munich, Stuttgart, Tradegate