EMERYVILLE, Calif.—NovaBay Pharmaceuticals (NYSE MKT: NBY) reported that strong sales of Avenova, its proprietary eyelid cleaner, drove significant sales increase for both the full year and the fourth quarter ending Dec. 31, 2016.

NovaBay’s posted sales of $11.9 million for 2016, represented a 172 percent increase over 2015. Fourth quarter sales rose to a record $4.1 million, up 149 percent over year ago and 19 percent from $3.4 million for the third quarter of 2016, according to NovaBay.

“We made major strides in a dramatic turnaround at NovaBay in 2016 with Avenova sales increasing 175 percent while we narrowed our operating loss by nearly half versus the prior year, allowing us to reach our goal of positive adjusted cash flow from operations in the month of December,” said Mark M. Sieczkarek, NovaBay’s president and CEO.

NovaBay’s product revenue for 2016 increased 180 percent to $11.6 million. Gross profit margin was 79 percent for 2016, compared with 71 percent for 2015. Gross profit margin on Avenova sales was 86 percent for 2016.

Operating loss for 2016 narrowed by 48 percent to $11.0 million from $21.1 million for 2015. R&D expenses for 2016 declined 76 percent to $1.4 million, sales and marketing expenses increased 12 percent to $11.8 million and G&A expenses declined 10 percent to $7.2 million, all compared with 2015.

NovaBay posted a net loss of $13.2 million in 2016 compared with a net loss for 2015 of $19.0 million. The operating cash burn attributable to this loss for 2016 was $12.1 million.

In fourth quarter 2016, NovaBay reported product revenue of $4.0 million, up 155 percent from $1.6 million for the fourth quarter of 2015 and up 24 percent from $3.3 million for the third quarter of 2016. Total gross profit margin was 80 percent for the fourth quarter of 2016, up from 64 percent for the prior-year period with the increase due to higher sales of Avenova and the impact of an accrual for rebates in the fourth quarter of 2015. The gross profit margin on Avenova sales for the fourth quarter of 2016 was 87 percent.

Operating loss for the fourth quarter of 2016 of $2.0 million improved by 67 percent from $6.2 million for the fourth quarter of 2015 and by 2 percent from $2.1 million for the third quarter of 2016.

The company’s net loss for the fourth quarter of 2016 was $1.6 million compared with a net loss for the fourth quarter of 2015 of $4.2 million.