NovaBay Pharmaceuticals and Sonoma Pharmaceuticals Agree to Market Avenova-branded Products in the European Union Through Sonoma’s Extensive Distributor Network
- None.
- None.
Insights
The strategic partnership between NovaBay Pharmaceuticals and Sonoma Pharmaceuticals represents a significant step in expanding the reach of Avenova®-branded products into the European Union. This move capitalizes on the established presence of Sonoma's eye care product, Ocudox®, which already holds a Class IIB CE mark, indicating compliance with EU health, safety and environmental protection standards. The synergy between NovaBay's brand strength in the U.S. and Sonoma's distribution network in Europe is poised to enhance market penetration and drive revenue growth through royalty fees.
From a market perspective, the EU's comparable size to the U.S. offers substantial growth potential for NovaBay. The licensing deal leverages Sonoma's direct sales and distributor network, which could expedite market adoption and increase market share. As hypochlorous acid-based products gain traction for their efficacy in treating ocular conditions like blepharitis, the partnership is well-positioned to capture demand in a niche but growing segment of the eye care market.
The agreement between NovaBay Pharmaceuticals and Sonoma Pharmaceuticals introduces a recurring revenue stream for NovaBay through royalty fees based on net sales of Ocudox by Avenova in the European market. This arrangement mitigates NovaBay's risk by relying on Sonoma's manufacturing capabilities and established European presence. For investors, the deal's financial implications hinge on the product's market acceptance and the effectiveness of Sonoma's sales strategy.
Investors should monitor the sales performance post-launch to gauge the impact on NovaBay's financial health. Although the agreement does not immediately alter NovaBay's revenue, it has the potential to contribute significantly to the top line if the European launch mirrors the success of Avenova in the U.S. market. This could positively affect NovaBay's stock valuation over time, contingent on the successful execution of the go-to-market strategy and sustained demand for hypochlorous acid eye care products.
The collaboration between NovaBay and Sonoma to market Avenova®-branded products in the EU is a strategic initiative that taps into the clinical need for effective treatments for blepharitis, a common eyelid inflammation. Hypochlorous acid, the active ingredient in these products, has been recognized for its antimicrobial properties, which are essential in managing conditions like blepharitis that can lead to dry eye and other complications.
Given the prevalence of blepharitis and the associated demand for effective treatments, the introduction of Ocudox by Avenova could meet a significant unmet medical need. The existing CE mark for Ocudox, which includes a claim of treating blepharitis, provides a competitive advantage by validating the product's clinical utility. As NovaBay leverages Sonoma's manufacturing and distribution capabilities, the potential for improved patient outcomes in the EU could translate into increased product adoption and sustained market growth.
Sonoma will manufacture Ocudox by Avenova with packaging similar to NovaBay’s Avenova products, which are the leading hypochlorous acid-based eye care products in the
“Sonoma has built a strong and growing presence in the European Union through a network of distributors and direct sales. We are excited to add Avenova-branded products to our offerings. At the same time, NovaBay has built strong brand recognition for Avenova in the dry eye market in
“We are delighted that NovaBay will now be able to capitalize on sales of hypochlorous acid eye care products in the European Union. Sonoma’s CE mark includes a claim of treating blepharitis, the inflammation that typically affects the edges of the eyelids when tiny oil glands near the base of the eyelashes become clogged, causing irritation and redness. We’ve long asserted that blepharitis can lead to complications such as dry eye,” said Justin Hall, CEO and General Counsel of NovaBay. “The EU market is comparable in size to the
About Ocudox
Ocudox is a patented solution intended to support the treatment of blepharitis and the daily hygiene of eyelids and eyelashes. Ocudox cleans the eye lids, lashes and periocular skin and assists in removing debris and microorganisms that can cause irritation and ocular surface disease. The solution does not contain any harmful chemicals, and there is no preparation required prior to application and no need to rinse after use. Ocudox is non-irritating, non-sensitizing, no stinging, no burning and has no contraindications. Ocudox is suitable for contact lens wearers.
About Sonoma Pharmaceuticals, Inc.
Sonoma Pharmaceuticals is a global healthcare leader for developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound, eye, oral and nasal care, dermatological conditions, podiatry, animal health care and non-toxic disinfectants. The company's products reduce infections, itch, pain, scarring and harmful inflammatory responses in a safe and effective manner. In vitro and clinical studies of HOCl show it to have impressive antipruritic, antimicrobial, antiviral and anti-inflammatory properties. Sonoma's stabilized HOCl immediately relieves itch and pain, kills pathogens and breaks down biofilm, does not sting or irritate skin and oxygenates the cells in the area treated, thereby assisting the body in its natural healing process. The company's products are sold either directly or via partners in 55 countries worldwide and the company actively seeks new distribution partners. The company has its corporate headquarters in
About NovaBay Pharmaceuticals, Inc.:
NovaBay Pharmaceuticals, Inc. develops and sells scientifically created and clinically proven eyecare, skincare and wound care products. NovaBay’s leading product Avenova® Antimicrobial Lid & Lash Solution is often prescribed by eyecare professionals for blepharitis and dry-eye disease and is also available directly to consumers through online distribution channels such as Amazon. DERMAdoctor® offers more than 30 dermatologist-developed skincare products through the DERMAdoctor website, well-known traditional and digital beauty retailers, and international distributors. NovaBay also manufactures and sells effective, yet gentle and non-irritating wound care products. The PhaseOne® brand is distributed through commercial partners in the
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 and technology progress and future financial performance of Sonoma Pharmaceuticals, Inc., NovaBay Pharmaceuticals, Inc. and their respective subsidiaries. These forward-looking statements are identified by the use of words such as “continue,” “develop,” “anticipate,” “expect" and “expand,” among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the companies’ respective businesses that could cause actual results to vary, including such risks that regulatory clinical and guideline developments may change, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, protection offered by patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for products will not be as large as expected, products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to meet cash needs or fund further development, as well as uncertainties relative to the recent pandemic and economic development, varying product formulations and a multitude of diverse regulatory and marketing requirements in different countries and municipalities, and other risks detailed from time to time in each company’s filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of this date, and NovaBay and Sonoma each disclaims any intent or obligation to revise or update publicly any forward-looking statement except as required by law.
Sonoma Pharmaceuticals™ and Ocudox® are trademarks or registered trademarks of Sonoma Pharmaceuticals, Inc. NovaBay® and Avenova® are trademarks or registered trademarks of NovaBay Pharmaceuticals, Inc. All other trademarks and service marks are the property of their respective owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240109817350/en/
NovaBay Pharmaceuticals Contacts
At the Company
Justin Hall
Chief Executive Officer and General Counsel
Phone: 510-899-8800
Website: www.novabay.com
Email: sales@novabay.com
Twitter: @NovaBayPharma
Investor Contact
LHA Investor Relations
Jody Cain
Phone: 310-691-7100
Email: jcain@lhai.com
Sonoma Pharmaceuticals Contacts
At the Company
Amy Trombly
Chief Executive Officer and General Counsel
Website: www.sonomapharma.com
Email: busdev@sonomapharma.com
Investor Contact
Email: ir@sonomapharma.com
Source: NovaBay Pharmaceuticals, Inc.
FAQ
What is the agreement between NovaBay Pharmaceuticals and Sonoma Pharmaceuticals?
What will Sonoma pay NovaBay?
Who will continue to market its Ocudox product in the European Union?
What are the expected benefits of the agreement?
