NovaBay Pharmaceuticals has expanded its commercial partnership agreement with Naqu Area Pioneer Pharma, a Shanghai company that markets high-end pharmaceutical products into China, for the commercialization of NeutroPhase Skin and Wound Cleanser in China and other select Asian markets.
Emeryville, Calif. - NovaBay Pharmaceuticals has expanded its commercial partnership agreement with Naqu Area Pioneer Pharma, a Shanghai company that markets high-end pharmaceutical products into China, for the commercialization of NeutroPhase Skin and Wound Cleanser in China and other select Asian markets.
Under the terms of the agreement, NovaBay will receive an upfront payment of $500,000, with additional payments totaling $200,000 that may be triggered by certain milestones. In addition, Pioneer Pharma (Singapore) Pte Ltd., an affiliate of Naqu Area Pioneer Pharma, has agreed to make a two-tranche equity investment in unregistered and untradeable NovaBay common stock that could reach $5.5 million.
After an initial investment of $1 million immediately, plus another $1.5 million contingent on obtaining regulatory approval, for the issuance of units consisting of shares and warrants (a total of 2 million shares and warrants to purchase 2 million shares) in 2012, Pioneer has the option to invest up to another 2 million shares at $1.50 per share over the next 12 months upon exercise of the warrants.
NeutroPhase is a hypochlorous acid (HOCI) skin and wound cleanser cleared by the Food and Drug Administration for the treatment of chronic non-healing wounds, including, stage I-IV pressure ulcers, stasis ulcers, leg ulcers, diabetic foot ulcers, postsurgical wounds, first- and second-degree burns, abrasions and minor irritations of the skin.
Recently, NovaBay received an additional 510(k) clearance from the FDA for the use of NeutroPhase to moisten and debride graft and donor sites and to be administered through a new convenient spray pump.
Under the expanded five-year agreement with Naqu Pioneer Pharma, NovaBay will continue to manufacture NeutroPhase in the United States and export the finished product to Pioneer's subsidiary in southeast Asia at a set transfer price.
In addition to China, where regulatory approval to commence marketing is expected mid-2013, the agreement provides exclusive distribution of NeutroPhase in Hong Kong, Macau, Taiwan, Singapore, Malaysia, Indonesia, Myanmar, Philippines, Thailand, Vietnam, Brunei, Cambodia and Laos, where commercial launch in smaller selected markets is expected by the end of 2012 and others by 2014.
NovaBay will also assist in the training of Naqu Pioneer sales representatives and support Pioneer with key opinion leader development in the specific markets, according to company reports.