NovaBay Pharmaceuticals, Inc., a biotechnology company, has received $2.6 million from partner Galderma SA, a global leading pharmaceutical company exclusively focused on dermatology.

The payment is associated with the clinical advancement of NovaBay's “non-antibiotic, anti-infective” Aganocide compound NVC-422 as a topical formulation moving to replace traditional antibiotics for the impetigo treatment, a highly contagious skin infection caused by common bacteria such as methicillin-resistant Staphylococcus aureus (MRSA).

Under the terms of an exclusive licensing agreement, Galderma is responsible for the ongoing clinical development programme for NVC-422 for impetigo, among other indications, and NovaBay will receive escalating double-digit royalties on net sales of products. The agreement is worldwide in scope and covers potentially all major dermatological conditions. NovaBay has retained rights to certain Asian markets, onychomycosis (nail fungus), post surgical use and use in wound care, and orphan drug indications. NovaBay has retained all rights in other Asian markets outside Japan, and has exclusive rights to promote the products developed under the agreement in hospitals and other healthcare institutions in North America.

Galderma and NovaBay recently announced on September 24, 2012 the first patients enrolled in the phase II b global trial for impetigo treatment, which according to the Food and Drug Administration (FDA) has all the design elements (controls, sample size, end-points) to be considered a pivotal trial. Full clinical development of NVC-422 for impetigo is expected to be completed globally in 2014.

NovaBay Pharmaceuticals is a biotechnology company focused on addressing the large unmet therapeutic needs of the global anti-infective market with its two distinct categories of compounds, Aganocides and NeutroPhase Skin & Wound Cleanser.