NovaBay expands commercial partnership with Shanghai co
NovaBay Pharmaceuticals, Inc has expanded its commercial partnership deal with Shanghai-based Naqu Area Pioneer Pharma Co. Ltd.
As per the terms of the transaction, NovaBay will receive an upfront payment of $500,000 with additional payments totaling $200,000.
Pioneer Pharma (Singapore) Pte Ltd, an affiliate of Naqu Area Pioneer Pharma Co., Ltd, has agreed to make a two-tranche equity investment in unregistered and untradeable NovaBay common stock that could reach $5.5 million.
Dr. Najafi, Chairman and Chief Executive Officer of NovaBay said, “The expanded partnership with a premier marketing organization such as Pioneer Pharma opens up the opportunity for NovaBay to provide NeutroPhase in multiple emerging markets in Southeast Asia.” Dr. Najafi also said, “The healthcare market in this region is growing rapidly with the change in lifestyle in increasing need for new medicines. "
Under this expanded 5-year deal, NovaBay will continue to manufacture NeutroPhase in the United States and also export the finished product to Pioneer’s arm in Southeast Asia at a set transfer price. In China, the regulatory approval to start marketing is likely mid-2013.
The deal provides distribution of NeutroPhase in Indonesia, Singapore, Taiwan, Macau, Malaysia, Myanmar, Philippines, Thailand, Vietnam, Brunei, Cambodia and Laos.
NovaBay will also assist in training of Pioneer sales representatives and support Pioneer with key opinion leader development in some markets.
The clinical-stage biotechnology company is also seeking potential partners to distribute NeutroPhase in North America, Europe, and South America.
NovaBay Pharma is a clinical-stage biotechnology company. The company is focusing its technology on four therapeutic areas including dermatology, ophthalmology, urology and hospital infections.