NovaBay Pharmaceuticals Announces Strategic Shift in U.S. Avenova Commercialization Strategy
March 12 2019 - 4:05PM
Business Wire
Makes board and executive changes and reduces
U.S. sales organization to focus only on high-performing, high
potential sales territories and specialty pharmacy channel
expansion
Company to hold 2018 fourth quarter and full
year conference call on March 28, 2019
NovaBay® Pharmaceuticals, Inc. (NYSE American: NBY), a
biopharmaceutical company focusing on commercializing prescription
Avenova® for the domestic eye care market, announces a strategic
shift in its U.S. commercialization strategy to support growth in
Avenova sales and maintain cost effectiveness, along with changes
to its Board of Directors and executive management team.
NovaBay announces a strategic shift to deploy its sales
representatives only in high-performing territories and territories
it has identified as having significant prescription volume
potential along with favorable health plan coverage to support
Avenova per-unit revenue. The company will continue to focus on
contracting with additional specialty pharmacies as channel
partners, which provide quality patient experiences at a negotiated
price per prescription. To align with the strategic shift, NovaBay
has reduced its U.S. commercial salesforce from 45 to 15 field
sales representatives.
In addition, NovaBay made the following personnel changes, all
effective immediately:
- Lead independent Director Paul E.
Freiman, who joined the company’s Board of Directors in 2002, has
been named Chairman. Former Chairman Mark M. Sieczkarek will
continue to serve as a Director of the company.
- Interim President and Chief Executive
Officer, Chief Financial Officer and Treasurer Jack McGovern has
resigned from the company.
- Senior Vice President and General
Counsel Justin Hall, who has been with the Company since 2013, has
assumed the positions of Interim President and Chief Executive
Officer. He will continue to serve as the Company’s General Counsel
and Corporate Compliance Officer.
- Corporate Controller Jason Raleigh, who
joined NovaBay in 2016, has assumed the positions of Interim Chief
Financial Officer and Treasurer.
“It is highly gratifying to have two qualified and seasoned
professionals in Justin Hall and Jason Raleigh, both with NovaBay
tenure, step into these key positions,” said Mr. Freiman. “We are
highly appreciative of Mark Sieczkarek’s many contributions to our
company as Chairman, in addition to his former roles as President
and CEO. We are delighted that he will continue serving as a member
of our Board.
“We appreciate the support of our current major stockholders who
have pledged additional financial resources as we execute on our
strategy,” added Mr. Freiman.
“We affirm our assertion that Avenova is the best product
available to topically treat chronic bacterial infections that
affect approximately 85% of the dry eye market,” said Mr. Hall.
“Given the current reimbursement environment, we are pursuing a
cost-efficient growth strategy by only deploying high-performing
sales representatives in our best-producing and highest potential
prescription volume territories while securing additional
relationships within the specialty pharmacy channel. We expect this
new strategy to accelerate our path to profitability. We thank the
37 employees who are leaving NovaBay as of March 15, 2019, and look
forward to implementing our new U.S. commercial strategy for
Avenova.”
Conference Call
NovaBay management will host an investment community conference
call on Thursday, March 28, 2019 beginning at 4:30 p.m. Eastern
time (1:30 p.m. Pacific time) to discuss the company’s financial
and operational results and to answer questions. Shareholders and
other interested parties may participate in the conference call by
dialing 800-608-8202 from within the U.S. or 702-495-1913 from
outside the U.S., with the conference identification number
6686573.
The live call also will be available at
http://novabay.com/investors/events. A replay of the call will be
available beginning two hours after its completion through 11:59
p.m. Eastern time April 14, 2019, by dialing 855-859-2056 from
within the U.S. or 404-537-3406 from outside the U.S. and entering
the conference identification number 6686573. The call will also be
archived at http://novabay.com/investors/events.
About NovaBay Pharmaceuticals, Inc.: Going Beyond
Antibiotics®
NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company
focusing on commercializing and developing its non-antibiotic
anti-infective products to address the unmet therapeutic needs of
the global, topical anti-infective market with its two distinct
product categories: the NEUTROX® family of products and the
AGANOCIDE® compounds. The Neutrox family of products includes
AVENOVA® for the eye care market, NEUTROPHASE® for wound care
market, and CELLERX® for the aesthetic dermatology market. The
Aganocide compounds, still under development, have target
applications in the dermatology and urology markets.
Forward-Looking Statements
This release contains forward-looking statements that are based
upon management’s current expectations, assumptions, estimates,
projections and beliefs. These statements include, but are not
limited to, statements regarding our business strategies and future
focus, our estimated future revenue, and generally the company’s
expected future financial results. These statements involve known
and unknown risks, uncertainties and other factors that may cause
actual results or achievements to be materially different and
adverse from those expressed in or implied by the forward-looking
statements. Factors that might cause or contribute to such
differences include, but are not limited to, risks and
uncertainties relating to returning to double digit revenue growth,
the size of the potential market for our products, improving sales
rep productivity and product distribution, obtaining adequate
insurance reimbursement, and any potential regulatory problems.
Other risks relating to NovaBay’s business, including risks that
could cause results to differ materially from those projected in
the forward-looking statements in this press release, are detailed
in NovaBay’s latest Form 10-Q/K filings with the Securities and
Exchange Commission, especially under the heading “Risk Factors.”
The forward-looking statements in this release speak only as of
this date, and NovaBay disclaims any intent or obligation to revise
or update publicly any forward-looking statement except as required
by law.
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Avenova Purchasing
InformationFor NovaBay Avenova purchasing
information:Please call 800-890-0329 or
email sales@avenova.com.www.Avenova.com
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version on businesswire.com: https://www.businesswire.com/news/home/20190312005867/en/
NovaBay ContactJustin
HallInterim President and Chief Executive
Officer510-899-8800jhall@novabay.com
Investor ContactLHA Investor
RelationsJody Cain310-691-7100jcain@lhai.com
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