NovaBay Slashes U.S. Sales Force and Revamps Management Team

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EMERYVILLE, Calif.—NovaBay Pharmaceuticals, suppliers of prescription Avenova for the domestic eyecare, market, announced Wednesday that it is slashing its U.S. commercial salesforce and reorganizing its management team. The moves are part of a “strategic shift” in its U.S. commercialization strategy for Avenova, NovaBay said in a statement issued Wednesday. The company, based here, said it slashing its U.S. commercial salesforce from 45 to 15 field sales representatives. NovaBay said it will deploy the reps only in “high-performing territories and territories it has identified as having significant prescription volume potential along with favorable health plan coverage to support Avenova per-unit revenue.”

NovaBay said it will continue to focus on contracting with additional specialty pharmacies as channel partners which provide “quality patient experiences at a negotiated price per prescription.”

Lead independent director Paul E. Freiman, who joined the company’s board of directors in 2002, has been named chairman. He replaces Mark M. Sieczkarek, who will continue to serve as a director of the company.

Jack McGovern, interim president and chief executive officer, chief financial officer and treasurer, has resigned from the company. Senior vice president and general counsel Justin Hall, who has been with the company since 2013, has been named interim president and CEO. He will continue to serve as general counsel and corporate compliance officer.

Corporate controller Jason Raleigh, who joined NovaBay in 2016, was appointed interim chief financial officer and treasurer.

NovaBay reported on Nov. 14, 2018 net sales of $8.9 million for the first nine months of 2018 compared with $11.9 million for the year-ago period. NovaBay management will release its 2018 year-end financial results on March 28, 2019, and will host a conference call for investors that day.