Contact Information: For information, contact: Investors: NovaBay Pharmaceuticals Thomas Paulson Chief Financial Officer 510-899-8800 tpaulson@novabaypharma.com Media: Susan Thomas 510-899-8841 sthomas@novabaypharma.com
NovaBay Pharmaceuticals Earns $3.75 Million in Milestone Payments From Galderma, S.A.
| Source: NovaBay Pharmaceuticals
EMERYVILLE, CA--(Marketwire - January 11, 2010) - NovaBay Pharmaceuticals, Inc. (NYSE Amex : NBY ), a clinical stage biopharmaceutical company developing a new class of
anti-infectives for treating multi-drug resistant pathogens, announced
today that it has received $3.75 million in milestone payments from partner
Galderma S.A.
A $2 million milestone payment was triggered by the completion of
formulation feasibility studies with NovaBay's Aganocide® compounds for
topical use. NovaBay also received a separate $1.75 million milestone
payment, consistent with its development agreement, for completing an
exploratory clinical study for the treatment of adult acne.
"We are pleased with the continuing and timely progress of our partnership
with Galderma, the world's leading dermatology company, and look forward to
fulfilling our long-term goal of bringing novel, non-antibiotic
anti-infective products to the dermatology market," said NovaBay CEO Ron
Najafi, Ph.D. "As antibiotic resistance escalates at an alarming rate, we
hope to provide alternative treatments to treat dermatological infections
without perpetuating the global spread of drug-resistant bacteria."
In March 2009, NovaBay and Galderma entered into an agreement to develop
and commercialize NovaBay's novel, proprietary Aganocide compounds. The
exclusive agreement is worldwide in scope, with the exception of certain
Asian markets, where NovaBay has commercialization rights, and in North
America where NovaBay has the option to exercise co-promotion rights. The
agreement covers acne, impetigo and potentially additional major
dermatological conditions, excluding onychomycosis (nail fungus) and orphan
drug indications.
Under the terms of the agreement, NovaBay could receive up to $50 million
from Galderma upon achievement of certain development and regulatory
milestones related to the acne, impetigo and other dermatological
indications. Inclusive in the agreement, the company could also receive
escalating double-digit royalties on net sales of products. The agreement
anticipates further cooperation for additional dermatological indications.
As part of the collaboration between the two companies, NovaBay and
Galderma also initiated a Phase 2a proof-of-concept study of NovaBay's lead
Aganocide compound NVC-422 for the treatment of impetigo in September 2009.
Impetigo is a highly contagious bacterial skin infection and one of the
most common bacterial skin infections among children, affecting over one
million people in the US alone. Results of that study are expected in the
first half of 2010.
About NovaBay
NovaBay Pharmaceuticals is a clinical stage biopharmaceutical company
focused on developing its proprietary and patented Aganocide compounds,
which are novel, synthetic anti-infective product candidates with
equivalent activity to the active antimicrobial molecules generated within
white blood cells. NovaBay's Aganocides are being developed to treat and
prevent a wide range of infections without causing bacterial resistance.
NovaBay has internal development programs aimed at addressing hospital and
respiratory infections. The company has a license and research
collaboration agreement with Alcon, Inc. for use of its Aganocide compounds
to treat eye, ear and sinus infections as well as for contact lens care.
NovaBay has also entered into an agreement with Galderma S.A. to develop
and commercialize Aganocides in acne, impetigo and other dermatological
indications. NovaBay™ and Aganocide® are trademarks of NovaBay
Pharmaceuticals, Inc. For more information on NovaBay, visit:
www.novabaypharma.com.
Cautionary Information Regarding Forward-Looking Statements
The statements in this press release regarding NovaBay's expectations
regarding its partnership with Galderma and of bringing products to market
for dermatological indications, including the expected timing or the
results of the Phase 2a proof of concept study, are forward-looking
statements subject to risks and uncertainties. Actual results may be
different than those NovaBay expects due to a number of factors, including
the risk that negative results from the development programs could preclude
Galderma from providing additional funding to NovaBay, risks and
uncertainties in obtaining regulatory approvals for NovaBay's products, as
well other as risks relating to NovaBay and its Aganocide compounds
detailed in NovaBay's Quarterly Report on Form 10-Q, under the caption
"Risk Factors" in Item 1A of Part II of that report, which was filed with
the Securities and Exchange Commission on November 12, 2009.