Biofrontera AG [NASDAQ:BFRA] has been on a losing streak for over a month now. However, in the past trading week, the stock found some support at the $5 to $7 level. On Friday, the stock bounced off this level and edged higher to close the day higher by 18.97%.
Going forward, there are several fundamental factors that could propel this stock into a full blown reversal from this point on.
One of them is the company’s strong finances. In late August, the company reported its financial results for the first half of the year and they pointed to growth. The company reported that its total revenues for the first 6 months of the year increased by 16% to EUR 16 million, a significant increase from the EUR 13.9 million that it had reported in a similar period in H1 of 2019.
The company also reported that in the first half of the year, it had managed to lower operating costs when compared to H1 of 2019. The company also noted that it had managed to strengthen its U.S business unit. It also announced that it had received expanded approval for its treatment of actinic keratosis on the trunk and neck called Ameluz®.
It also reported that it had started a pharmacokinetics study in the U.S.A that would test the safety of PDT. All this points to a company that has the fundamentals to grow revenues in the foreseeable future. As these projects get realized, the company’s intrinsic value will grow, and so will its stock value.
With the company’s fundamentals anchoring its long-term value growth, there are several other factors that are likely to propel this stock upwards in the near-term. One the key factors likely to propel this stock up in the short-term is the upcoming Lake Street Capital Markets Best Ideas Growth (BIG4) conference that will take place on the 17th of September.
The company’s CEO has been named as one of those that will be presenting at this event. Investors could bid up this stock as they await for him to touch on some of the big projects that the company is working on, and the progress they have made on them.
The company’s management will also take part in the Baader Investment Conference 2020, and investors will be looking towards any development on this front.
The stock is also likely to be driven by news that the company intends to mediate in its legal dispute with Mr. Wilhelm K.T Zours, and Deutsche Balaton AG. This could create excitement around this stock when markets open today.
About Biofrontera AG
Biofrontera AG is a biopharma company that develops and sells dermatological treatments. It is based in Leverkusen, Germany.