NovaBay Pharmaceuticals, Inc. (NYSE Amex:NBY), a clinical stage specialty pharmaceutical company developing first-in-class, anti-infective compounds for the treatment and prevention of antibiotic-resistant infections, today reported full-year and fourth quarter financial results for 2009. The company also highlighted recent progress of its proprietary and partnered development programs.
As of December 31, 2009, the company's cash, cash equivalents and short-term investments totaled $11.3 million, compared with $12.1 million at the end of 2008; representing a full-year net cash burn of approximately $800,000.
NovaBay's license and collaboration revenue for the year ended December 31, 2009 grew significantly to $15.7 million compared with $6.7 million a year ago. License and collaboration revenue for the fourth quarter ended December 31, 2009 increased to $7.5 million from $2.2 million in the fourth quarter of 2008, due primarily to $3.75 million in milestone payments from Galderma S.A. for the successful completion of formulation feasibility studies and an exploratory acne study. The overall increase in annual license and collaboration revenue was due to additional milestone payments and financial support from NovaBay's partners Galderma and Alcon, Inc.
Net income for 2009 was $2.7 million, compared with a net loss in 2008 of $8.1 million. NovaBay reported net income of $3.4 million or $0.14 cents per diluted share for the fourth quarter, compared with a net loss of $1.54 million or $0.07 a share in the same quarter a year ago.
Total research and development expenses decreased 24 percent to $7.3 million in 2009 from $9.6 million in 2008. For the fourth quarter, NovaBay reported research and development expenses of $2.5 million, compared with $2.9 million in the same quarter a year ago. The overall decrease was primarily due to lower clinical trial costs and cost-cutting measures. NovaBay expects increased research and development expenses in 2010, as the company advances its development programs in dermatology, catheter-associated urinary tract infection (CAUTI) andonychomycosis, or nail fungus.
"In 2009, NovaBay continued to exercise strong fiscal management, while making marked progress in our clinical and preclinical programs. We are pleased with the early positive results in our partnered programs, which resulted in $3.75 million in milestone payments from Galderma and a commitment from Alcon for increased support of $2 million annually to enhance our programs in eye, ear and sinus infections, as well as contact lens solutions," said Dr. Ron Najafi, chairman and chief executive officer of NovaBay. "We believe 2010 will be a transformational year, as we expect to advance our proprietary programs in onychomycosis and catheter-associated urinary tract infection, and move our partnered programs in impetigo, a skin infection, and conjunctivitis, or pink eye, beyond proof-of-concept."
2009 and Recent Highlights