Conference call begins today at 4:30 p.m.
Eastern time
NovaBay® Pharmaceuticals,
Inc. (NYSE American: NBY), a biopharmaceutical company
focusing on commercializing prescription Avenova® for the domestic
eye care market, reports financial results for the three and 12
months ended December 31, 2018 and provides a business update.
“We are steadfast in our belief that Avenova is the best topical
product available to treat chronic bacterial infections that affect
about 85% of those suffering from dry eye. We are affirming our
commitment to providing broad access to this important product
among eye care professionals and patients under a model that makes
economic sense for NovaBay,” said Justin Hall, Interim President
and CEO. “In keeping with this focus we recently contracted with
new partner pharmacies that serve patients in all 50 states. Our
engagement with partner pharmacies ensures quality patient
experiences and offers us the benefit of a negotiated price per
prescription.
“We recently completed the restructuring of our sales
organization and now have sales representatives deployed in
territories that are profitable or on the verge of profitability.
In light of our smaller sales organization, we are revising our
outlook for 2019 net sales to be in the range of $6 million to $8
million, with a significant narrowing in operating expenses over
2018 through various cost-management initiatives,” he added. “We
believe this shift in focus to long-term profitable growth is in
the interest of our shareholders and will facilitate future access
to capital.”
Fourth Quarter Financial Results
Net sales for the fourth quarter of 2018 were $3.6 million
compared with $6.3 million for the fourth quarter of 2017, with the
decrease primarily due to lower insurance reimbursement resulting
in a lower average selling price of Avenova, along with a $1.3
million reduction in non-Avenova sales. Gross margin on net product
revenue was 88% for the fourth quarter of 2018 compared with 85%
for the prior-year period, with the improvement due to product
mix.
Sales and marketing expenses for the fourth quarter of 2018 were
$3.2 million compared with $3.3 million for the fourth quarter of
2017. General and administrative expenses for the fourth quarters
of 2018 and 2017 were unchanged at $1.5 million. Research and
development expenses for the fourth quarters of 2018 and 2017 were
$0.1 million.
The operating loss for the fourth quarter of 2018 was $1.6
million compared with operating income of $0.4 million for the
fourth quarter of 2017.
Non-cash gain on the change of fair value of warrant liability
for the fourth quarter of 2018 was $0.3 million compared with a
non-cash gain of $0.4 million for the fourth quarter of 2017.
The net loss for the fourth quarter of 2018 was $1.3 million, or
$0.07 per share, compared with net income for the fourth quarter of
2017 of $0.8 million, or $0.02 per diluted share.
Full Year Financial Results
Net sales for 2018 were $12.5 million compared with $18.2
million for 2017. Gross margin on net product revenue was 88% for
2018, up from 85% for 2017.
The operating loss for 2018 was $7.9 million compared with an
operating loss of $7.3 million for 2017. Sales and marketing
expenses for 2018 decreased 7% to $12.8 million, general and
administrative expenses decreased 33% to $5.8 million, and research
and development expenses decreased 37% to $0.3 million, all
compared with 2017.
Non-cash gain on the change of fair market of warrant liability
for 2018 was $1.3 million compared with a non-cash loss of $0.1
million for 2017.
The net loss for 2018 was $6.5 million, or $0.39 per share,
compared with a net loss for 2017 of $7.4 million, or $0.48 per
share.
NovaBay reported cash and cash equivalents of $3.2 million as of
both December 31, 2018 and December 31, 2017.
Recent Update
In March 2019 the company received proceeds from a $2.0 million
convertible promissory note.
Conference Call
NovaBay management will host an investment community conference
call today 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.
A live webcast of the call will be available at
http://novabay.com/investors/events and will be archived for 90
days. A replay of the call will be available beginning two hours
after call completion through 11:59 p.m. Eastern time April 4, 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.
About Avenova®
Avenova is an eye care product formulated with our proprietary,
stable and pure form of hypochlorous acid. It has proven in
laboratory testing to have broad antimicrobial properties as a
preservative in solution as it removes foreign material including
microorganisms and debris from the skin on the eyelids and lashes
without burning or stinging. Avenova is marketed to optometrists
and ophthalmologists throughout the U.S. by NovaBay’s direct
salesforce. It is accessible from more than 90% of retail
pharmacies in the U.S. through agreements with McKesson
Corporation, Cardinal Health and AmerisourceBergen.
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
NOVABAY PHARMACEUTICALS, INC. CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(in thousands, except par value
amounts)
ASSETS
Current assets:
December 31,2018
December 31,2017
Cash and cash equivalents $ 3,183 $ 3,199
Accounts receivable, net of allowance for
doubtful accounts ($10 and $13 at December 31, 2018 and December
31, 2017, respectively)
3,385 3,629
Inventory, net of allowance for excess and
obsolete inventory and lower of cost or estimated net realizable
value adjustments of $104 and $140 at December 31, 2018 and
December 31, 2017, respectively)
280 504 Prepaid expenses and other current assets 1,760
1,663 Total current assets 8,608
8,995 Property and equipment, net 201 471 Other assets 552
613 TOTAL ASSETS $ 9,361
$ 10,079
LIABILITIES AND STOCKHOLDERS'
EQUITY Liabilities: Current liabilities: Accounts payable $ 551
$ 466 Accrued liabilities 3,255 1,672 Deferred revenue 41
2,841 Total current liabilities
3,847 4,979 Deferred revenues - non-current - 534 Deferred rent 184
286 Warrant liability 178 1,489 Other liabilities 198
197 Total liabilities 4,407
7,485 Stockholders' equity:
Preferred stock: 5,000 shares authorized; none outstanding at
December 31, 2018 and December 31, 2017 — — Common stock, $0.01 par
value; 50,000 and 240,000 shares authorized at December 31, 2018
and December 31, 2017, respectively; 17,089 and 15,385 shares
issued and outstanding at December 31, 2018 and December 31, 2017,
respectively 171 154 Additional paid-in capital 119,764 113,514
Accumulated deficit (114,981 ) (111,074
) Total stockholders' equity 4,954
2,594 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $
9,361 $ 10,079
NOVABAY
PHARMACEUTICALS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (in
thousands except per share data)
Three Months EndedDecember
31,
Year EndedDecember 31,
2018 2017 2018
2017 Sales: Product revenue, net $ 3,604 $
6,259 $ 12,474 $ 18,127 Other revenue 21
57 34 103
Total sales, net 3,625 6,316 12,508 18,230 Product cost of
goods sold 441 977
1,503 2,784 Gross profit 3,184
5,339 11,005
15,446 Research and development 107 146
259 410 Sales and marketing 3,186 3,299 12,789 13,711 General and
administrative 1,502 1,502
5,828 8,636 Total
operating expenses 4,795 4,947
18,876 22,757 Operating
income (loss) (1,611 ) 392 (7,871 ) (7,311 ) Non cash gain
(loss) on changes in fair value of warrant liability 340 400 1,311
(101 ) Other income, net 6 3
19 12 Income
(loss) before provision for income taxes (1,265 ) 795 (6,541 )
(7,400 ) Provision for income tax (3 ) (2 )
(4 ) (3 ) Net income (loss) and
comprehensive income (loss) $ (1,268 ) $ 793 $
(6,545 ) $ (7,403 ) Net income (loss) per share
attributable to common stockholders, basic $ (0.07 ) $ 0.05 $ (0.39
) $ (0.48 ) Net income (loss) per share attributable to common
stockholders, diluted $ (0.07 ) $ 0.02 (0.46 ) (0.48 )
Weighted-average shares of common stock outstanding used in
computing net loss per share of common stock Basic 17,089 15,376
16,921 15,324 Diluted 17,089 16,018 17,058 15,324
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version on businesswire.com: https://www.businesswire.com/news/home/20190328005868/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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