NovaBay Signs Distribution Agreement with McKesson for i-Lid Cleanser

NovaBay® Pharmaceuticals, Inc. (NYSE MKT:NBY), a biopharmaceutical company focusing on the development and commercialization of its non-antibiotic anti-infective products, announced today that it has signed a nationwide distribution agreement with McKesson Corporation (NYSE:MCK). The agreement covers NovaBay’s i-Lid^TM Cleanser, a prescription lid and lash hygiene product for the management of debilitating eye conditions such as blepharitis, Meibomian gland dysfunction and associated dry eye.

McKesson is the oldest and largest health care services company in the nation, and is also the largest pharmaceutical distributor in North America, providing products and supplies to 45,000 pharmacies. “Having i-Lid Cleanser now widely available in local pharmacies and major retail chains across the U.S., such as Wal-Mart, Costco, CVS and Target is another major achievement in NovaBay’s commercialization strategy,” said Dr. Ron Najafi, Chairman and CEO of NovaBay.

An estimated 30 million Americans suffer from chronic and often painful eye conditions such as blepharitis and meibomian gland dysfunction, which causes dry eye. This agreement will make i-Lid Cleanser, which ophthalmologists and optometrists are now using to successfully treat those conditions, readily available to those patients.

NovaBay recently launched a major marketing effort with a dedicated sales force for i-Lid Cleanser aimed at optometrists and ophthalmologists. “The agreement with McKesson will make our sales team much more effective, because eye care professionals now can be assured that patients will be able to easily fill prescriptions for i-Lid Cleanser,” added Glenn Moro, Vice President of Sales and Marketing.

NovaBay’s i-Lid Cleanser is the only eye care product to contain Neutrox™, NovaBay’s name for its proprietary pure hypochlorous acid (HOCl). Labs tests show that Neutrox, a naturally occurring substance released by white blood cells to fight microbial invaders, has potent antimicrobial activity, yet is non-toxic to mammalian cells. It also neutralizes bacterial toxins, and has been cleared by the Food & Drug Administration to clean skin and wounds.

As a result of its properties, i-Lid Cleanser is ideal for the treatment of blepharitis, where Staphylcocci bacteria grow on eyelids, causing swelling, redness, inflammation, irritation and a crusty build-up, and dry eye syndrome. Patients who’ve had blepharitis for years—along with their doctors—report i-Lid has finally brought relief from the often-painful condition. Many eye doctors are also now using i-Lid Cleanser routinely in preparation for cataract surgery and other types of surgery, and to treat dry eye syndrome. Because Neutrox is not a traditional antibiotic or steroid, there are no risks of bacterial resistance or side effects.

About NovaBay Pharmaceuticals, Inc.: Going Beyond Antibiotics® NovaBay Pharmaceuticals is a clinical-stage biopharmaceutical company focused on addressing the unmet therapeutic needs of the global, topical anti-infective market with its two distinct product categories: Aganocide® compounds, led by auriclosene, and its Hypochlorous Solution Family of Products: NeutroPhase® for wound care, Advanced i-Lid™ Cleanser for the eye care market, and CelleRx™ for the dermatology market.

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Forward-looking Statements This release contains forward-looking statements, which are based upon management’s current expectations, assumptions, estimates, projections and beliefs. These statements include, but are not limited to, statements regarding the future distribution of i-Lid Cleanser, the clinical efficacy of i-Lid Cleanser, and i-Lid Cleanser’s contribution toward the company’s expected future financial results. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or achievements to be materially different and adverse from those expressed in or implied by the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, risks and uncertainties relating to difficulties or delays in product development, clinical trials, regulatory approval, production and marketing of the company’s products, unexpected adverse side effects or inadequate therapeutic efficacy of the product candidates, the uncertainty of patent protection for the company’s intellectual property or trade secrets, the company’s ability to obtain additional financing as necessary and unanticipated research and development and other costs. Other risks relating to the company and its products, including risks that could cause results to differ materially from those projected in the forward-looking statements in this press release, are detailed in NovaBay’s latest Form 10-K and Form 10-Q filings with the Securities and Exchange Commission, especially under the heading “Risk Factors.” The forward-looking statements in this release speak only as of this date, and NovaBay disclaims any intent or obligation to revise or update publicly any forward-looking statement except as required by law.