NovaBay Pharmaceuticals Reports 64% Year-Over-Year Growth in Avenova Unit Subscription-Based Sales

Rhea-AI Summary

NovaBay Pharmaceuticals, Inc. (NBY) reports a 64% increase in online subscription-based unit sales for its Avenova® Lid & Lash Spray Solution and a 38% increase in subscription-based customers in 2023 over the prior year on Amazon.com and Avenova.com. A substantial 24% of all online sales were from subscribers in 2023, up from approximately 14% in 2022. Avenova Spray averaged a 4.5-star overall rating across all online channels, with over 13,000 customer reviews. The CEO, Justin Hall, attributes the success to the superior quality and effectiveness of the product. The company also expanded its Avenova portfolio of products, including the Avenova Eye Health Support antioxidant-rich oral supplement, Avenova Lubricating Eye Drops, Avenova Warm Eye Compress, and the i-Chek by Avenova. Additionally, the Avenova Allograft, an amniotic tissue prescription-only product, is available through eyecare professionals in the United States.

Insights

Market Research Analyst

The reported 64% increase in online subscription-based unit sales and 38% increase in subscription-based customers for NovaBay Pharmaceuticals' Avenova product line is a strong indicator of the company's growing market presence and customer loyalty. This growth trajectory is particularly significant given the competitive nature of e-commerce platforms and the health products market. The increase in subscriber-based sales can lead to more predictable revenue streams and potentially improve the company's valuation by providing a more stable financial outlook.

Moreover, a high customer satisfaction level, as evidenced by the 4.5-star overall rating from over 13,000 reviews, can be a key driver for organic growth through word-of-mouth and reduced customer acquisition costs. The emphasis on a portfolio approach to dry eye treatment suggests a strategic move to capture a larger share of the treatment regimen, which may lead to increased cross-selling opportunities and higher customer lifetime value.

Financial Analyst

The shift towards a higher proportion of sales from subscriptions, with 24% of all online sales being from subscribers, reflects a strategic emphasis on building a recurring revenue model. This model is often favored by investors due to its potential to provide a more consistent and predictable cash flow compared to one-time purchases. Such a model can also enhance the company's ability to forecast and manage inventory and marketing expenses more effectively, potentially leading to improved margins.

It is also worth noting that the diversification of sales channels, with significant growth through the company’s own website, may reduce dependency on third-party platforms like Amazon, which can have implications for negotiating power and profit margins. This diversification strategy could mitigate risks associated with platform-specific changes, such as algorithm updates or fee adjustments.

Pharmaceutical Industry Analyst

The expansion of NovaBay's Avenova portfolio to include a full range of products for dry eye treatment indicates a targeted approach to addressing a common and chronic condition. By offering products that span the entire treatment regimen, NovaBay is positioning itself as a comprehensive provider in the eye health space. The introduction of the Avenova Allograft, a prescription-only product, suggests a strategic entry into more specialized, higher-margin products, which could positively impact the company's overall profitability.

Furthermore, the mention of the i-Chek by Avenova for monitoring eyelid health represents a foray into digital health solutions, which are becoming increasingly important in patient self-management and could represent a growing segment for the company. As healthcare continues to evolve with a focus on personalized and preventative care, such product innovations could set the stage for NovaBay to capitalize on emerging market trends.

EMERYVILLE, Calif.--(BUSINESS WIRE)-- NovaBay Pharmaceuticals, Inc. (NYSE American: NBY) announces a 64% increase in online subscription-based unit sales for its Avenova^® Lid & Lash Spray Solution and a 38% increase in subscription-based customers in 2023 over the prior year on Amazon.com and Avenova.com. A substantial 24% of all online sales were from subscribers in 2023, up from approximately 14% in 2022. In addition, of the more than 13,000 customer reviews across all online channels, Avenova Spray averaged a 4.5-star overall rating.

“We are proud of our loyal customer base and Avenova’s consistently superior ratings on our two primary online channels, which we attribute to the superior quality and effectiveness of our product,” said Justin Hall, CEO of NovaBay. “Generating sales through the subscriber base provides efficient and consistent revenue, allowing us to better manage our sales and marketing spend.

“Because dry eye is a complex condition, over the past several years we expanded our Avenova portfolio of best-in-class products,” he added. “While the vast majority of our online sales came through Amazon.com, during 2023 we also saw a significant increase in the Avenova subscriber base through our own Avenova website.”

NovaBay offers a full portfolio of scientifically developed products for each step of the standard dry eye treatment regimen, including the Avenova Eye Health Support antioxidant-rich oral supplement, Avenova Lubricating Eye Drops for instant relief, Avenova Warm Eye Compress to soothe the eyes and the i-Chek by Avenova to monitor physical eyelid health. The Avenova Allograft, an amniotic tissue prescription-only product, is available through eyecare professionals in the United States.

About Avenova

Manufactured in the U.S., Avenova spray is formulated with NovaBay's patented, proprietary, stable and pure form of hypochlorous acid. It is clinically proven to kill a broad spectrum of bacteria to help relieve the symptoms of bacterial dry eye, yet is non-irritating and completely safe for regular use. All Avenova products are available directly to consumers through online distribution channels such as Amazon.com and Avenova.com.

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.com. 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 U.S. for professional use only, and the NeutroPhase^® brand is distributed in China by China Pioneer Pharma Holdings, Limited. More information about NovaBay is available here.

Forward-Looking Statements

Except for historical information herein, matters set forth in this press release may be 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 our current revenue sources, expected future revenue, customer satisfaction, 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, the possibility that the available market for the Company’s products will not be as large as expected, the Company’s products will not be able to penetrate one or more targeted markets, and revenues will not be sufficient to meet the Company’s cash needs. 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 and Registration Statement on Form S-1 filing 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
Avenova.com

DERMAdoctor Purchasing Information
For DERMAdoctor purchasing information:
Please call 877-337-6237 or email service@dermadoctor.com
DERMAdoctor.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240130786781/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

Source: NovaBay Pharmaceuticals, Inc.

FAQ

What is the percentage increase in online subscription-based unit sales for Avenova Lid & Lash Spray Solution in 2023?

NovaBay Pharmaceuticals, Inc. (NBY) reported a 64% increase in online subscription-based unit sales for its Avenova® Lid & Lash Spray Solution in 2023.

What is the percentage increase in subscription-based customers for Avenova in 2023 compared to the prior year?

There was a 38% increase in subscription-based customers for Avenova in 2023 compared to the prior year.

What was the percentage of online sales from subscribers in 2023?

A substantial 24% of all online sales were from subscribers in 2023, up from approximately 14% in 2022.

What was the average overall rating for Avenova Spray across all online channels?

Avenova Spray averaged a 4.5-star overall rating across all online channels, with over 13,000 customer reviews.

What products are included in NovaBay's expanded Avenova portfolio?

NovaBay's expanded Avenova portfolio includes the Avenova Eye Health Support antioxidant-rich oral supplement, Avenova Lubricating Eye Drops, Avenova Warm Eye Compress, and the i-Chek by Avenova.

Where is the Avenova Allograft available?

The Avenova Allograft, an amniotic tissue prescription-only product, is available through eyecare professionals in the United States.