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NovaBay and Galderma Enter Into Global Agreement to Develop and Commercialize NovaBay's Novel Aganocide Drugs for Major Dermatological Conditions
Date:3/25/2009

- Up to $50 Million Potential Milestones plus Double Digit Royalties on Future Sales -

- Company to Host Conference Call at 11:00 a.m. ET Today -

EMERYVILLE, Calif., March 25 /PRNewswire-FirstCall/ -- NovaBay Pharmaceuticals, Inc. (NYSE Amex: NBY), a mid-stage biopharmaceutical company developing first-in-class anti-infective products for the treatment and prevention of a wide range of infections without causing resistance, today announced that it has entered into an agreement with Galderma S.A. to develop and commercialize NovaBay's novel proprietary Aganocide(R) compounds. The exclusive agreement is worldwide in scope, with the exception of certain Asian markets, and covers all major dermatological conditions, excluding onychomycosis (nail fungus) and orphan drug indications.

Under the terms of the agreement, NovaBay expects to receive from Galderma up to $50 million upon achievement of certain development and regulatory milestones related to the acne and impetigo indications and future royalties on net sales of products. The agreement also envisages further cooperation for additional dermatological products and indications. Under the agreement, NovaBay will also receive escalating double-digit royalties on net sales of products.

Galderma will be responsible for the development costs of the acne and other indications, except in Japan, and for the ongoing development program for impetigo, upon the achievement of a specified milestone. Galderma will also reimburse NovaBay for the use of its personnel in support of the collaboration. NovaBay retains the right to co-market products resulting from the agreement in Japan. In addition, NovaBay has retained all rights in other Asian markets outside Japan, and has exclusive rights to promote the products developed under the agreement in the hos
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SOURCE NovaBay Pharmaceuticals, Inc.
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