Bay Area Biopharma NovaBay Pharmaceuticals, Inc. Beefs up Salesforce to Promote Breakthrough Eye Drug
January 7, 2015
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
Bay Area anti-infective biopharma NovaBay Pharmaceuticals, Inc. said Wednesday that it is refining its business model to focus on products for the eye care market, and as such has will be adding 50 new sales reps by July 2015. It added that it may see some lay offs while implementing the new streamlining plan, but did not give an estimated number of jobs that could be lost.
The Emeryville, Calif.-based company said that under its new plan, it will be pushing to expand the presence of its Avenova daily-use prescription eye care product, which will need a beefed-up salesforce as the company comes calling.
“Based on the metrics and current performance, we will be expanding the sales force to 35 representatives by February and to approximately 50 representatives by July,” said NovaBay in a statement. “These sales representatives will be calling on ophthalmologists and optometrists across the United States. NovaBay’s distribution agreements with McKesson Corporation and Vision Source have made this game-changing product available in 90 percent of the nation’s 67,000 pharmacies and in optometrists’ and ophthalmologists’ offices all across the country.”
NovaBay said it is also considering its “strategic alternatives” and said it intends to seek additional sources of revenue and reduce expenses by licensing or selling select assets in urology, dermatology, wound care and plastic surgery. It stressed, however, that it “remains committed to the partnerships it currently has” in wound care with China’s Pioneer Pharma, Korea’s Shin-Poong Pharma and the Middle East’s Biopharm Group to market NeutroPhase; in animal care with Virbac; and in dermatology with Galderma, NovaBay.
“Following a comprehensive review of our assets, competitive positions, markets and market dynamics we have determined that focusing on eye care affords NovaBay the best opportunity for near-term revenue growth and, ultimately, profitability and positive operating cash flow,” said Ron Najafi, chairman and chief executive officer of NovaBay. “In addition, we are committed to monetizing other assets. Expenses to support programs outside of eye care have been significantly reduced, unless these programs are funded through collaborations or partnerships.”
The size of the market NovaBay is targeting it estimated by analysts to bring in around $500 million annually in the U.S. alone. With an estimated 30 million Americans suffering from eyelid conditions such as blepharitis, meibomian gland dysfunction (MGD) or dry eye syndrome, NovaBay said Wednesday it has its work cut out for it. Part of that new focus will include its rebranding of what was previously known as i-Lid Cleanser to Avenova, in order to more clearly differentiate this prescription product from over-the-counter (OTC) detergent-based lid wipes.
NovaBay also said it would step up its presence at major eye care industry events in current months, including well-attended conferences such as the American Academy of Ophthalmology, the American Optometric Association, the American Society of Cataract and Refractive Surgery Conferences and the South Eastern Congress of Optometry, as well as numerous Vision Expo meetings.
The company said any layoffs that resulted as its streamlined its business will be regrettable but necessary.
“While we look to the future with great optimism, we also are grateful for the hard work and dedication over the years by employees who are affected by a streamlining of our organization and extend best wishes to them in their future professional endeavors,” it said.
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