2008 and Recent Events Highlighted
EMERYVILLE, Calif., April 1, /PRNewswire-FirstCall/ -- NovaBay Pharmaceuticals, Inc. , a mid-stage biopharmaceutical company developing first-in-class anti-infective products for the treatment and prevention of a wide range of infections without causing resistance, reported today its financial results for the fourth quarter and full year ended December 31, 2008. The company also announced clinical development progress and operational highlights during the year 2008.
License and collaboration revenue for the fourth quarter of 2008 increased 44% to $2.2 million from $1.5 million for the fourth quarter of 2007. The net loss for the fourth quarter of 2008 was $(1.5) million, or $(0.07) per share, compared to a net loss of $(1.4) million, or $(0.09) per share, reported for the fourth quarter of 2007. License and collaboration revenue for the year ended December 31, 2008 increased 14% to $6.7 million, from $5.9 million for the year ended December 31, 2007. The net loss for the year ended December 31, 2008 was $8.1 million, or $(0.38) per share, compared to a net loss of $5.4 million, or $(0.60) per share reported for the year ended December 31, 2007. As of December 31, 2008, the company’s cash and cash equivalents totaled $12.1 million.
“During 2008, NovaBay continued to advance development of our Aganocide(R) compounds, our proprietary, first-in-class anti-infective products that are designed to mimic the human body’s natural defense against infection without developing resistance,” said Dr. Ron Najafi, chairman and chief executive officer of NovaBay. “We have built on this solid progress in 2009, as evidenced by our recently announced exclusive agreement with Galderma to develop and commercialize our Aganocides for major dermatological conditions. This is NovaBay’s second collaboration with a worldwide market leader after our alliance with Alcon in the ophthalmic, otic and sinusitis fields. We expect to maintain a low cash burn in 2009 as we work closely with our partners that fund clinical development costs, and as we focus investment on developing our earlier-stage internal pipeline programs for which we anticipate proof-of-concept data later this year.”
2008 and Recent Highlights
Financial Results
Fourth Quarter 2008 Financial Results
License and collaboration revenue for the fourth quarter of 2008 increased 44% to $2.2 million from $1.5 million for the fourth quarter of 2007. License and collaboration revenue consists of the amortization of the upfront technology access fees previously paid, and reimbursements for the funding of research and development activities.
The net loss for the fourth quarter of 2008 was $(1.5) million, or $(0.07) per share, compared to a net loss of $(1.4) million, or $(0.09) per share, reported for the fourth quarter of 2007.
Research and development expenses for the quarter ended December 31, 2008 totaled $3.3 million, compared to $1.8 million for the quarter ended December 31, 2007. The increase was largely due to the timing of pre-clinical and clinical trials.
General and administrative expenses for the quarter ended December 31, 2008 were $0.5 million, compared to $1.2 million in the comparable 2007 period.
NovaBay ended the quarter and year with $12.1 million in cash and cash equivalents.
Full Year 2008 Financial Results
For the full year 2008, license and collaboration revenue totaled $6.7 million, compared to $5.9 for the year 2007.
NovaBay reported a net loss of $(8.1) million, or $(0.38) per share, for the full year 2008, compared to a net loss of $(5.4) million, or $(0.60) per share, for the full year 2007.
Research and development expenses for the full year 2008 were $9.6 million compared with $7.4 million for the full year 2007. The increase was primarily attributable to an increase in development/clinical expenses and higher employee costs due to an increase in headcount.
General and administrative expenses totaled $5.6 million for the year ended December 31, 2008, compared with $4.4 million for the year-ago period. This increase was due in part to an increase in employee costs and related increases in other employee benefits and recruiting expenses
About NovaBay Pharmaceuticals, Inc.
NovaBay Pharmaceuticals is a mid-stage biopharmaceutical company focused on developing its proprietary and patented Aganocide compounds, first-in-class, novel, synthetic anti-infective product candidates that are bioequivalent to the active antimicrobial molecules generated within white blood cells to treat and prevent a wide range of infections without causing resistance. NovaBay has internal development programs aimed at addressing hospital and respiratory infections. The company has a licensing and research collaboration agreement with Alcon, Inc. for use of its Aganocides in the eye, ear and sinus, and in contact lens solutions. NovaBay has entered into an agreement with Galderma S.A. to develop and commercialize Aganocides in acne, impetigo and other dermatological indications. NovaBay(R) and Aganocide(R) are trademarks of NovaBay Pharmaceuticals, Inc. For more information on NovaBay, visit www.novabaypharma.com.
Forward-Looking Statements
This release contains forward-looking statements, which are based upon management’s current expectations, assumptions, estimates, projections and beliefs. Statements regarding NovaBay’s expectations of its 2009 cash burn, anticipation of proof-of-concept data later in 2009 on its earlier-stage internal pipeline programs, that it will receive from Galderma up to $50 million upon achievement of certain development and regulatory milestones, the development and potential benefits of, and the market opportunities for, NovaBay’s product candidates, as well as other statements that relate to future events or results, are forward-looking statements. Forward-looking 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: the risk that NovaBay may incur unexpected charges or need to or determined to engage in research and development not previously planned, which will cause NovaBay’s cash burn to be greater than it expects; risks and uncertainties relating to difficulties or delays in discovery, development, testing, production and marketing of the company’s product candidates; unexpected adverse side effects or inadequate therapeutic efficacy of the product candidates; the uncertainty of patent protection for the company’s intellectual property or trade secrets; the company’s ability to obtain additional financing as necessary; results obtained in animal models may not be obtained in humans; and the risk of unexpected delays in the regulatory process which may delay the commencement or completion of clinical trials. Other risks relating to NovaBay and Aganocide(R) compounds, including risks that could cause actual results to differ materially from those projected in the forward-looking statements in this press release, are detailed in NovaBay’s Annual Report on Form 10-K for the period ended December 31, 2008, under the caption “Risk Factors” in Item 1A of Part I of that report, filed with the Securities and Exchange Commission on March 31, 2009. 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.
CONTACT: Tom Paulson, Chief Financial Officer of NovaBay Pharmaceuticals,
Inc., +1-510-899-8809, tpaulson@novabaypharma.com; Investor Relations:
Gregory Gin, +1-908-376-7737, ggin@invigoratepr.com, or Media Relations:
Mariesa Kemble, +1-608-850-4745, mkemble@invigoratepr.com, both of
Invigorate Communications for NovaBay Pharmaceuticals, Inc.
Web site: http://www.novabaypharma.com/
