NovaBay Pharmaceuticals and Galderma have announced the
expansion of their multi-year collaboration agreement. Based on positive data
assessing the activity of NovaBay’s Aganocide(R) compounds against impetigo,
Galderma has agreed to exercise its option for this indication.
Dr. Ron Najafi, Chairman and CEO of NovaBay, commented,
“We are very pleased with Galderma’s decision to exercise their option.
Galderma is the world’s largest dermatology company with impressive clinical
and commercial capabilities. This provides further evidence of Galderma’s
commitment to commercializing NovaBay’s Aganocides for dermatological
indications and we look forward to advancing these programs through clinical
trials to commercialization.”
Humberto C. Antunes, CEO of Galderma, commented, “This
enhancement of our collaboration demonstrates our belief that NovaBay’s
first-in-class Aganocides have the potential to provide a significant
advancement in the treatment of skin infections, a condition that affects
millions of patients worldwide, without adding to the growing problem of
antibiotic resistance. Galderma is looking forward to advancing the Aganocide
programs for multiple indications.”
Under the terms of the new agreement, which was initially
signed in March 2009 for the research and development of impetigo and acne,
Galderma has agreed to exercise its option to advance the clinical development
program and will pay a $3.25 million continuation fee together with additional
R&D funding in 2010 and 2011. NovaBay has the potential to receive up to $62
million in milestones from Galderma, and escalating double-digit royalties on
net sales of products once commercialized.
Galderma will be financially responsible for all the
development and clinical costs, and will reimburse NovaBay for the costs
incurred in support of the collaboration. NovaBay retains the right to
co-market products resulting from the agreement in Japan. In addition, NovaBay has
retained rights in certain Asian markets outside of Japan,
and has exclusive rights to promote the products developed under the agreement
in hospital and other healthcare institutions in North
America.
