NovaBay Pharmaceuticals announced investments totaling $5 million to support the recent strategic shift in its US commercialization strategy aimed at driving growth in Avenova sales while maintaining cost effectiveness.
The investments include a convertible loan of $2 million from Ascendiant Capital Markets and Chicago Venture Partners. Additionally, Triton Funds LP has committed to making an equity investment of up to $3 million.
“We are dedicated to our ongoing and long-lasting commitment to eye care professionals and patients suffering from dry eye disease, while capitalizing on the significant opportunity afforded by Avenova,” Justin Hall, Interim President and CEO, said in a company news release. “We are executing on our strategic shift toward a cost-efficient growth strategy, having already deployed our sales representatives in high-performing territories and territories with significant prescription volume potential and favorable health plan coverage in support of Avenova per-unit revenue. We appreciate the confidence of our investors who are dedicated to both NovaBay and Avenova’s success in addressing this significant market need.
Avenova is designed for the removal of foreign material, including microorganisms and debris on and around the eyelid margin, that may be due to blepharitis, meibomian gland dysfunction (MGD) and dry eye.
“Importantly, I’m affirming our position that Avenova is the best topical product available to treat chronic bacterial infections that affect about 85% of those suffering from dry eye disease,” Mr. Hall said. “Avenova addresses a sizable market comprised of millions of Americans who suffer from blepharitis and dry eye, as well as those who undergo ophthalmic procedures such as LASIK, retinal and cataract surgeries, or experience contact lens intolerance issues. We have an established position in the dry eye market with more than 827,000 prescriptions filled since Avenova’s launch in 2015. The addition of more than 2,400 new prescribers in 2018 brings total Avenova prescribers to approximately 15,000. We are fully committed to providing ongoing, long-term and broad access to Avenova to eye care professionals and patients. We are now providing that access under a model that makes economic sense for NovaBay.”