NovaBay and Galderma Enter Into Global Agreement to Develop and CommercializeNovaBay's Novel Aganocide Drugs for Major Dermatological Conditions
Wed, 03/25/2009 - 4:42am
NovaBayPharmaceuticals, Inc., a mid-stage biopharmaceutical companydeveloping first-in-class anti-infective products for the treatment andprevention of a wide range of infections without causing resistance, todayannounced that it has entered into an agreement with Galderma S.A. to developand commercialize NovaBay's novel proprietary Aganocide(R) compounds. Theexclusive agreement is worldwide in scope, with the exception of certain Asianmarkets, and covers all major dermatological conditions, excludingonychomycosis (nail fungus) and orphan drug indications. Under the terms of the agreement, NovaBay expects to receive from Galdermaup to $50 million upon achievement of certain development and regulatorymilestones related to the acne and impetigo indications and future royaltieson net sales of products. The agreement also envisages further cooperationfor additional dermatological products and indications. Under the agreement,NovaBay will also receive escalating double-digit royalties on net sales ofproducts. Galderma will be responsible for the development costs of the acne andother indications, except in Japan, and for the ongoing development programfor impetigo, upon the achievement of a specified milestone. Galderma willalso reimburse NovaBay for the use of its personnel in support of thecollaboration. NovaBay retains the right to co-market products resulting fromthe agreement in Japan. In addition, NovaBay has retained all rights in otherAsian markets outside Japan, and has exclusive rights to promote the productsdeveloped under the agreement in the hospital and other healthcareinstitutions in North America. "This agreement highlights Galderma's commitment to the future ofdermatology. Aganocide compounds have the potential to bring aboutsignificant progress in the treatment of skin diseases which affect millionsof patients, without adding to the growing problem of antibiotic resistance,"said Humberto C. Antunes, Chief Executive Officer of Galderma. "Galderma isglad to be working with NovaBay in this important and very promisingendeavor." "We are very pleased to have entered into this collaboration withGalderma, the world-leader in dermatology. We believe that Galderma'sdemonstrated development, regulatory and marketing capabilities, backed by itsunrivaled reputation and track record of success, will enable NovaBay tobenefit from accelerated development timelines and global commercialexpertise," said Dr. Ron Najafi, Chairman and Chief Executive Officer ofNovaBay. "Like our alliance with Alcon in the ophthalmic, otic and sinusfields, this agreement represents another major validation of the potentialfor our novel Aganocide products in treating infections caused by a wide rangeof bacteria, viruses and fungi." The company's collaborations with Alcon and Galderma provide significantfuture revenue-generating potential for NovaBay, with favorableeconomic-sharing for its unique, differentiated products that address large,global dermatological and ophthalmic markets.