Dear ladies and gentlemen, welcome to the conference call of Biofrontera AG. At our customer’s request, this conference will be recorded. As a reminder, all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions. [Operator Instructions] May I now hand you over to Pamela Keck, Head of Investor Relations, who will lead you through this conference. Please go ahead.

Thank you. Good morning. Good afternoon. And welcome to Biofrontera’s earnings conference call for the first six months ended June 30, 2021. Yesterday, we issued a press release announcing financial results for the six months ended June 30, 2021. We encourage everyone to read the press release, as well as the half year report both of which are available on our website.. Please note that certain information discussed on this 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. All risks and uncertainties are detailed in and are qualified by the cautionary statements contained in Biofrontera’s press releases and SEC filings. This conference call contains time-sensitive information that is accurate only as of the date of this live broadcast today, August 20, 2021. Biofrontera undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. And with that, I would now like to turn the call over to Hermann Lübbert, our CEO. Hermann? Hermann, you might be unmute. Hermann Lübbert: Sorry, I was on mute. Yes. Thank you, Pamela. And thank you very much, ladies and gentlemen, for taking the time to participate in today’s call. With me today is Ludwig Lutter, our CFO. He will present the financial results in a second. Following that I would like to share with you updates regarding our current regulatory and clinical development, as well as the current business performance and activities. But first of all, to the financial results of the first six months of 2021. For that, I would like to hand over to Ludwig.

Yeah. Thank you, Hermann, and thank you all for joining us today. I’d like to start by providing you with an overview of the financial results for the first six months ended June 30, 2021. Following the challenges resulting from the COVID-19 pandemic, the company’s sales experienced a slow start into the first half of 2021. However, from mid-March onwards, a clear recovery in sales development became apparent. This includes our key market the USA, where we have been generating sales comparable to pre-pandemic levels again since mid-March. More information on that in just a moment. First, general revenue development of the Group, for the period of January 1 to January 30, 2021, Biofrontera Group generated a total of sales €13.1 million, a 90% decrease to €16.1 million in the same -- in sales in the same period of last year. However, I’d like to draw your attention to the fact that total revenue in 2020 reporting period included a one-time payment of €6 million received under a license agreement in April 2020. For this reason, we believe it is important to compare revenue generated from actual product sales. And as such, revenues from product sales in the first half of 2021 were €13.1 million and that is up 35%, compared to €9.7 million in the first half of 2020. The year-on-your sales recovery, which we already perceived in mid-March, especially in our largest market, the U.S. continued certainly to a large extent attributable to the recovery of the general pandemic situation in the U.S., as well as in Germany. Due to the pandemic and for better comparability, we’re not only comparing our revenue development in the reporting period with our prior year period, but also with the revenue in the first half of 2019 pre-pandemic. As a result, a…

Thank you. [Operator Instructions] And the first question we’ve received is from Bruce Jackson, The Benchmark Company. Your line is now open. Please go ahead.

Hi. Good morning and thank you for taking my questions. I want to talk about the launch of the Xepi for a moment. So in terms of the call points, is it the same physician that’s currently using Ameluz or is it different physician? Are there other people out there who are using both, who could potentially use both drugs and it could be sales that would be more efficient because of that? Hermann Lübbert: Well, they are largely overlapping and we also saw those offices that do PDT, and in general, these are the larger offices and they also use more antibiotics than smaller offices in general. However, there are exceptions where you find doctors that do a lot of prescription drugs and particularly stay away from generic drugs that’s possible and also, of course, potential customers for Xepi we are going to visit them at all. On top of that, there are dermatologists who are specialized on pediatric dermatology and bacterial infections in general and impetigo, and in particular, frequently occur in children or even young children. They would either go to these dermatologists and they hardly see any actinic keratosis because they specialize on dermatology and children. However, for Xepi, they are very important customers for us. So there is a large overlap and to the greatest extent these are the same customers but there are other niches that we have to go to with Xepi.

Okay. Great. That was very helpful. The other question I had was just with regard to the general U.S. market trends right now and COVID-19. There’s been a bit of resurgence since the close of the quarter. Are you seeing anything regionally or geographically that’s new and could potentially impact your outlook on how the rest of the year unfolds? Hermann Lübbert: Well, obviously, we are carefully watching the development of COVID-19 measures and you know that in some countries the COVID measures have become stronger. Again, those left to wear masks again like in California and to a certain extent in Massachusetts. This has not yet reflected on our ability to visit the doctor’s offices. We also don’t expect another shutdown to come. I think nobody expects that. But we don’t know more than anybody else does.

Okay. That’s helpful though. So thank you very much for answering my questions. Hermann Lübbert: Yeah. Thanks Bruce.

The next question is from Thomas Flaten, Lake Street Capital Markets. Your line is now open. Please go ahead.

Thank you and thanks for taking my questions as well. Just on the XL lamp, in the absence of having the label change for three tubes, can you just walk us through what the sales pitch is going to be on the larger lamp compared to the smaller current lamp? Hermann Lübbert: Yeah. Absolutely. So, usually, most actinic keratosis actually occurs on the head. So face or scalp, bald scalp and that is usually treated with lamp to. Now, if you treat the entire face or sports directed treatment of actinic keratosis on various parts of the face, then with the current lamp, you need several illuminations. So that is actually allowed according to level. So this is in level to illuminate several times. However, it is obviously an additional burden to the patient and it’s extra work for the doctor’s office. So the larger lamp would prevent that burden and that additional work. So we do believe that this actually has a large impact of convincing offices to switch over to that light as opposed to other lamps that they use and subsequently also use our product.

Great. And then to follow up on Bruce’s question about the outlook for the year, if I just double your first half revenues, that puts me well inside your guidance range. Are you not increasing the range because of concerns about COVID or how should we think about the low end of your guidance range, which would be -- which would represent a downtick second half over first half? Hermann Lübbert: Yeah. Well, you’re right, we could be thinking about increasing the range, we have decided not to do this because too many valuables still for the rest of the year. And as you know, we have a seasonal business. So Q4 is always the best sales month for us. And if other thing develops as positively as it does develop now and continues to develop this way, then our guidance may turn out to be low. However, at this point, we simply think we don’t have the information that will require us to raise the guidance.

If I may insert, Thomas, this -- you can blame it on the CFO…

Yeah.

… who is always the conservative guy who looks into the glass bowl and says, way too early to really make a statement. So let’s stick with preferably a conservative outlook from today’s point of view as opposed to having to change that again. So just simply not enough information that we have. Let’s look into Q4 and then we’ll know more.

Got it. And then one final question, of the R&D projects. So for example, the acne study or the illumination protocol, how many of those are dependent on the Biofrontera Inc IPO and how many have you contemplated just with your current cash reserves at the Group level? Hermann Lübbert: None of these, maybe some of the later ones, like squamous cell carcinoma in situ and also the Phase III trials for the acne project, which are not listed in our reports yet. But, obviously, after Phase II comes Phase III, those would probably be delayed until we have further financing. But the smaller ones, so we have that we are planning now and intend to start none of this will be -- will depend on the IPO, because all these studies will actually be paid out of by Biofrontera Bioscience irrespective of whether the IPO happens or not.

Excellent. I appreciate you taking the question. Thank you. Hermann Lübbert: Thank you, Thomas.

At the moment, there are no further questions. [Operator Instructions] As we haven’t received any further questions, I would like to turn back to you. Hermann Lübbert: Yeah. Then I would like to say thank you for taking the times and I wish you, yeah, a nice Friday afternoon and a nice weekend. Bye-bye.

Thank you. Same from me. Thank you very much.

Ladies and gentlemen, thank you for your attendance. This call has been concluded. You may disconnect.