NovaBay Pharmaceuticals (NYSE American: NBY) issued the
following Letter to Stockholders:
To My Fellow Stockholders:
NovaBay Pharmaceuticals enters 2021 focused on growing sales of
our high-quality, differentiated consumer products: Avenova®, the
premier antimicrobial lid and lash spray, and CelleRx® Clinical
Reset, a breakthrough product that marked our entry into a new
beauty category late last year. I’m excited to announce that we
will soon expand consumer access to both products to
brick-and-mortar retail stores. Avenova will be available at CVS
stores, one of the nation’s largest retail chains, and CelleRx
Clinical Reset will be available to consumers in the U.S. and China
through select luxury retailers.
Among our corporate priorities for the year, we are also
actively seeking new products and line extensions in the large
ophthalmic and skincare markets. Our experienced commercial
organization, improved balance sheet and established industry
relationships give us confidence that now is the opportune time to
leverage these assets to generate new sources of revenue to
increase stockholder value.
Building on Avenova’s Leadership Position
By the end of February, we expect Avenova to be on the shelves
of up to 3,000 CVS Pharmacy stores across the U.S. and available
through CVS.com, a leading online drugstore. With this first-time
brick-and-mortar presence, consumers have the option of buying
Avenova without a prescription at their local CVS store, in
addition to online through Amazon.com, Walmart.com, Avenova.com and
CVS.com. We also continue to promote prescription sales through our
physician dispensed and pharmacy channels.
Since introducing Avenova for the treatment of bacterial dry eye
in late 2015, we have continuously expanded our customer base. Our
product is unique among competitors because our patented, pure,
proprietary hypochlorous acid does not have the impurities found in
competing brands and unlike them Avenova is manufactured in the
U.S. Avenova is the only commercial hypochlorous acid lid and lash
product clinically proven to reduce bacterial load on ocular
surfaces, thus addressing the underlying cause of bacterial dry
eye. We believe our pure formulation supported by proven clinical
data have made Avenova the leading hypochlorous acid-based product
because physicians and consumers understand the need for a safe,
effective antimicrobial spray. We have reached over 10,000
prescribers and well over 100,000 consumers to date. Importantly,
the market holds ample room for growth as chronic dry eye afflicts
approximately 30 million Americans, with ocular bacteria accounting
for about 85% of those cases.
We migrated to a direct-to-consumer channel in mid-2019,
expanding our previous prescription-only sales model. This decision
proved to be especially fortuitous during the COVID-19 pandemic by
allowing consumers to order Avenova without a prescription and
without leaving their homes. We supported this move through
aggressive, cost-effective consumer digital marketing campaigns
featuring compelling lifestyle-based messaging. These campaigns
have already attracted new users, as evidenced by record Avenova
unit sales last year.
During 2020, we increased Avenova’s geographic availability
through a distribution agreement with Designs for Vision for
Australia. We were delighted to expand internationally by engaging
with this highly reputable brand and look forward to supporting
their growth in the Australian market this year.
Lastly, our previously announced independent laboratory results
confirmed that our pure hypochlorous acid kills SARS-CoV-2, the
virus that causes COVID-19, on hard surfaces. We submitted this
data to the Environmental Protection Agency (EPA) for inclusion of
Avenova on its N list of COVID-19 disinfectants. Under that name,
the EPA verified our solution’s viricidal abilities and included
our product on the N list, under the brand names of NovaBay Hard
Non-Porous Surface Pro and Avenova Surface Pro Plus. These two
products are not meant to compete against traditional cleaning
products, but rather are intended for only large-quantity
institutional sales where a completely nontoxic cleansing solution
is necessary.
Positioning CelleRx Clinical Reset in the High-End Beauty
Market
We were delighted to launch Clinical Reset late last year under
our CelleRx dermatology brand. Clinical Reset aligns with our
strategy to cost-effectively expand our product offering by
leveraging our own pure hypochlorous acid technology. Importantly,
Clinical Reset stands out in a crowded market by bringing a new
level of clinical research and rigor to the beauty industry.
CelleRx Clinical Reset is a gentle and soothing facial spray
that disrupts the layer of bacteria that settles and grows on the
face. When this barrier is out of balance, acne, rosacea and
infection and even “maskne” can set in. As the brand name suggests,
Clinical Reset gets the skin back to a healthy baseline to heal
itself while also enabling absorption of other skincare products.
It can replace or augment a morning cleanse for dry sensitive skin,
reduce bacteria after exercising, calm skin following
microdermabrasion and other aesthetic facial procedures and combat
environmental aggressors. Unlike many harsh products used for the
same purpose, it is gentle and is not an antibiotic. Our launch was
well-timed, as during the pandemic personal care has gained
importance, with skincare representing a significant aspect of that
routine.
In alignment of our brand image, Clinical Reset will soon be
available at global luxury retailer Lane Crawford in Hong Kong and
China, as well as online for consumers worldwide at
LaneCrawford.com. I’m pleased to report that we also expect in the
near term to receive Clinical Reset purchase orders from other
prominent U.S.-based luxury retailers for both in-store and online
sales. I’m proud of our team’s ability to quickly execute on the
promise to broaden the distribution of Clinical Reset beyond
CelleRx.com, and to do so with retailers that reinforce our vision
and branding for this product.
Improved Financial Position to Support Growth
NovaBay is well-positioned to implement our growth strategy as a
result of various initiatives we undertook last year. We added
incremental revenue early in the pandemic by capitalizing on our
international health supply network to sell personal protection
equipment (PPE) while product was in short supply. Our team at
NovaBay demonstrated great agility by quickly creating the
infrastructure to offer these products with timely order
fulfillment. We continue to offer the last of our KN95 protective
masks to institutions at bulk pricing. Please contact
sales@avenova.com for purchasing information. We only have a
limited supply and would like to help end the pandemic in the first
half of 2021 by ensuring everyone has access to clean, disposable,
and individually wrapped facial coverings.
Also, last year we strengthened and simplified our balance
sheet. Even with the effects of COVID-19 on our core business, we
reduced our cash burn and raised operating capital. We also
eliminated all major debt instruments. As a result, we believe our
funds are sufficient to support current operations throughout 2021
including our enhanced online marketing and advertising programs
for Avenova and the launch of Clinical Reset.
This is an exciting time at NovaBay with more to come. We have
worked hard to advance our core business and better position our
Company for a stronger post-pandemic environment. Our priority
during 2021 is to focus on growth, both organically and through
potential partnerships and acquisitions. We have already achieved a
formidable initial step by broadening consumer access to Avenova
and Clinical Reset through brick-and-mortar retail stores and
increased online availability. In addition, we continue to evaluate
opportunities to acquire or license ophthalmic and skincare
products, and will pursue select line extensions to enhance
revenue. We will continue to be resourceful in quickly capitalizing
on opportunities that may come our way.
In closing, I would like to extend my thanks to our customers,
medical professionals, employees and to our shareholders for your
support. We look forward to providing updates as the year
proceeds.
Sincerely, Justin Hall, Esq. Chief Executive Officer and General
Counsel February 8, 2021
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.
Forward-Looking Statements
Except for historical information herein, matters set forth in
this press release are forward-looking within the meaning of the
“safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995, including statements about the commercial
progress and future financial performance of NovaBay
Pharmaceuticals, Inc. 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 the Company’s
products and the intended growth of such products, the Company’s
potential expansion into new product lines through partnerships and
acquisitions, and any future revenue that may result from selling
these products, as well as 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 the
size of the potential market for our products or future products,
the possibility that the available market for the Company’s
products or future products will not be as large as expected, the
Company’s products will not be able to penetrate one or more
targeted markets, revenues will not be sufficient to meet the
Company’s cash needs, 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
Information For NovaBay Avenova purchasing information:
Please call 800-890-0329 or email sales@avenova.com.
www.Avenova.com
CelleRx Clinical Reset Purchasing
Information For NovaBay CelleRx Clinical Reset
purchasing information Please call 877-CELLERX www.CelleRx.com
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version on businesswire.com: https://www.businesswire.com/news/home/20210208005259/en/
NovaBay Contact Justin Hall
Chief Executive Officer and General Counsel 510-899-8800
jhall@novabay.com Investor
Contact LHA Investor Relations Jody Cain 310-691-7100
jcain@lhai.com
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