Biofrontera Inc (NASDAQ:BFRI) is a US based Bio-Technological subsidiary who develop treatments for dermatological conditions, in particular diseases caused primarily by exposure to sunlight. The German parent company, Biofrontera AG, chose to finance its US subsidiary via a IPO on the NASDAQ.
The IPO was completed on 28 October 2021, raising $18 Million pricing each share at $5. Since then, BFRI stock has now more than doubled to $12. So why is BFRI stock rising? With plenty of questions to be answered, let’s breakdown the key details surrounding the emerging BFRI stock.
Biofrontera Inc aim to expand its US product sales marketshare
In a statement by Biofrontera AG, the parent organisation aims to fully fund the US subsidiary through its IPO. The company highlighted that financing opportunities cannot be created by Biofrontera AG, which is mainly restricted by the German capital market and corporate law regulations.
“The IPO and the associated access to one of the largest technology markets, together with the growth-oriented US corporate law, provides Biofrontera Inc. with the opportunity for further financing independently of Biofrontera AG. The high trading volumes already on the first two trading days indicate solid investor interest.”Professor Dr. Hermann Lübbert, founder and CEO of Biofrontera AG
Furthermore, Biofrontera AG highlighted the companies strong marketshare position with key treatments in the United States. Biofrontera’s market share with its Ameluz treatment has roughly 24% of the Photodynamic Therapy (PDT) sector in the United States.
However, there is still considerable market opportunities available in the United States, and Biofrontera Inc (US Subsidiary) will aim to break into these markets through increased marketing exposure.
Biofrontera Inc also plans to ramp up the marketing of its second product Xepi, a topical antibiotic that is approved for the treatment of Impetigo.
Wallstreet see upside in BFRI stock
Coverage from Wallstreet has remained bullish since Biofrontera entered the US market arena in late October. Last week, Benchmark analyst Bruce Jackson begun coverage on BFRI stock with a Buy rating and $11 target valuation.
The analyst noted that Biofrontera’s Ameluz treatment is positioned for “significant growth” given its superior efficacy, attractive reimbursement and an expanding sales force.
However, Biofrontera’s biggest bull is easily Roth Capital analyst Jonathan Aschoff. The analyst initiated coverage on BFRI stock on November 24, with a Buy rating and $20 price target. The target was well received from investors, significantly driving the share price up for the first time since BFRI’s IPO.
Aschoff sees Biofrontera’s Ameluz revenues significantly increasing in actinic keratosis, as the Bio-Tech increases its US sales and marketing efforts as we mentioned earlier. Furthermore, Aschoff views Ameluz clinical data as superior to its competing peers.
BFRI Stock: The Bottom Line
So why is BFRI Stock trading higher in recent weeks? A combination of positive Wallstreet targets and a strong marketable opportunity in the United States is driving BFRI stock higher.
In addition, with increased volume swings we can also expect that investors are also jumping on board the hype in a speculative play. We will continue to update our viewers on further developments with BFRI stock.
Follow us on Google News here to get minute-by-minute updates on when we post on any device via the Google News App.
The content above is strictly for informational purposes only and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.