Good day, and welcome to the Biofrontera's 2018 Half Year Financial Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Pamela Keck. Please go ahead, madam.

Thank you. Hello, and welcome to Biofrontera's first half 2018 earnings conference call. Earlier this morning, before you just a few minutes ago, I guess, we issued a press release announcing financial results for the six month in the June 30, 2018. We would like to remind everyone that we will only be summarizing results in today's call. Biofrontera's half year report and condensed consolidated interim financial statements for the reporting period ended June 30, 2018, the corresponding of which released in our Annual Report on Form 20-F have been filed on EDGAR, and are also available in the Investor section of our Web site at www.biofrontera.com on the financial results. We encourage you to review the documents in their entirety. Please note that certain information discussed on the call today is covered under the Safe Harbor provisions of the private securities litigation Reform Act. We caution listeners that during this call Biofrontera's management will be making forward-looking statements. Actual results could differ materially from those stated or implied by these forward looking statements due to risks and uncertainties associated with the Company's business. These forward-looking statements are subject to a number of risk, including risks related to fluctuations and our financial results, our ability to attract and retain key personnel, risks of our clinical trial, the timing and our ability to submit applications for obtain and maintain regulatory approval for our product candidates and other detailed in and are qualified by the cautionary statements contained in our news releases and SEC filings, including its Annual Report on Form 20-F and subsequent fillings. This conference call contains time sensitive information that is accurately only as of today of this live broadcast on August 31, 2018. Biofrontera undertakes no obligation to revise or update any forward-looking statements to reflect events or…

Thank you, Herman and a warm welcome from my side to everyone on the call. As Herman has already summarized for the first six months ended June 30, 2018, we reported total revenue of approximately €9 million compared to approximately €5 million for the same period in 2017, a 79% increase year-over-year. Revenue from product sales were €8.8 million compared to the prior year period of €4.2 million, which represents product sales revenue growth of 109%. In detail, sales revenue in the U.S. grew significantly in the last reporting period to approximately €6.4 million compared to only €2.4 million in the same period last year, a 170% improvement. In less than two years, the U.S. has not only become the most important market for Ameluz but already represents 73% to almost three quarters of our total revenue. Revenue in Germany amounted to €1.2 million for the first half of 2018, which is a slight increase of 7% from the first half of 2017. Our revenue in the remainder of Europe amounted to €1.2 million euro for the first half of 2018, an increase of 65% compared to the same periods of last year. Other revenue generated about €1.1 million in the first half of 2018, a decrease of 83% compared to € 0.8 million in the first half of 2017. This revenue represent our charges to Maruho, the largest Company's dermatology company for work performed in the first phase of the collaboration agreement through which we had also received revenue from development projects in last year's period. As reported earlier, this agreement has come to an end and both Maruho and Biofrontera are currently considering a continuation of the collaboration under a new agreement. However, we haven't made any decision yet to concerning the details and timing of such a…

[Operator Instructions] We have one question on the line from Bruce Jackson from the Benchmark Company. Please go ahead.

So I’ve got a three part question on the commercial operations, beginning with the United States then moving over to Europe. And then I wanted to discuss the annual revenue guidance. So in the United States, you announced that you've got the contact with the Veteran’s Administration in August. And is that going to have any impact on third quarter, and what do you think the overall potential for that contract? Hermann Lübbert: This is the entry, so that we can nationwide supply Ameluz and our BF-RhodoLED to the VA institutions, but the uptake of Ameluz will take time. So we will have first sales here and the real potential as I said 230 veterans are having non-myeloma skin cancer. And of course not everybody will be treated with BDT, but we will like to have our fair share of that.

And then outside of the VA, how is the rest of the market during so far in the third quarter? Hermann Lübbert: In the third quarter, usually there is some seasonality that we see in the market and so we experienced that this year as well. There has been a situation that we had to create with CMS on reimbursement, we do that at the moment and so the third quarter is probably at the moment in line with our expectations. And it will depend now on September that all the reimbursement issues are in the database is and we can continue with the momentum that we experienced in the first half of the year. But rear view PDT season starts in September and we expect a very, very strong fourth quarter.

Then moving over to Europe, you’ve experienced some nice uptick with the daylight therapy in Germany and Spain. Is there any seasonality there as well and will you expect follow through in those markets for the rest of the year? Hermann Lübbert: So it actually -- it's almost reversed, because with the daylight PDT, the summer months now become a real opportunity for us. And where we have usually the seasonality going into little valley during summer, now we could maintain actually the level of sales in Germany and Spain throughout the summer, which is really a good signal. And I do expect that some of these doctors that now experienced PDT with daylight, probably will move into conventional therapy as well in the latest season of -- from September in conventional PDT from September to the winter month.

So the given…. Hermann Lübbert: Redeploy the…

And then just overall on the revenue guide for the year, it looks like if you were to even be flat sequentially for the next couple of quarters, you would still be in above the lower end of your guidance range. I'm just curious as to why it didn't bring up the lower end of the guidance range for the year?

As I have said earlier, we maintain our guidance for this year we thought and agreed to be optimistic enough to think that we would most likely end up at the lower end of the range -- at the higher end of the range. We didn't want to change the range at all unless we have a lot more confidence that we would end up with different numbers and then probably amend the range accordingly.

One more question on the Maruho agreement. So you've completed the work that you agreed to to-date. What are potentially the next steps for you with Maruho? I know you haven't decided exactly what you're going to do yet. But what's the process that you're going through at the Maruho? And when do you expect to have a better view of what's going to happen next? Hermann Lübbert: The Maruho agreement as we formed it in the first place was an agreement with the aim to actually figure out what the potential of new formulations of certain blocks could potentially be whether we could actually make it to work. And in this agreement, we have not provided, agreed or discussed even rights on -- marketing rights in various parts of the word. Maruho has said that they are not interested in marketing rights in Europe, so those would probably fall to Biofrontera if we were to continue and at ever bring the product to market. However, we haven't had any discussion on other parts of the word. And the further we go the clear I have to be -- of course, the picture of both sides as to where the expectations of respective other sites are going to be. So now if we continue then making these points clear becomes more important that actually was two years ago. So the negotiations are actually more difficult than in the first phase. Having said that, both sides are still in the phase where they think about whether -- what the interests actually are and where we want to be going. So we haven't started any commercial discussions yet.

Okay, and congratulations again and all the progress during the quarter. I'm going to back in queue. Hermann Lübbert: Thank you.

[Operator Instructions] There are no further questions in the queue at this time. I would now like to turn the call back to the host for any additional or closing remarks. Hermann Lübbert: Since there are no further questions, I would like to thank you again for taking the time and interest and joining us for the call. Thank you very much.

Thank you. That concludes today’s conference. Thank you for your participation, ladies and gentlemen, you may now disconnect.