BUSINESS NovaBay Pharmaceuticals Reports Mixed Third Quarter 2023 Financial Results By Staff Monday, November 13, 2023 12:21 AM EMERYVILLE, Calif.—NovaBay Pharmaceuticals, Inc. (NYSE American: NBY) reported financial results for the three and nine months ended Sept. 30, 2023. Net product revenue from Avenova-branded eyecare products grew 7 percent year-over-year, while sales and marketing expenses declined 7 percent versus the prior year. Also, operating loss for the first nine months of 2023 narrowed by 16 percent from the prior year. Justin Hall, NovaBay CEO, said, “We are successfully expanding relationships with eyecare specialists with product sales from our physician dispensed channel growing 36 percent over the prior year and increasing in each consecutive quarter so far in 2023."Our multiple sales channels for Avenova have a tremendous impact on one another, with our physician dispensed channel creating a halo effect over our over-the-counter products. When patients first learn about Avenova from their doctor, there is an inherent trust in the brand that we can leverage in our direct-to-consumer sales channel,” said Hall.“We continued to benefit from our expertise in digital marketing, resulting in a 7 percent decrease in sales and marketing spend for the quarter and a 13 percent decline year-to-date. Operating loss narrowed by 16 percent for the first nine months of 2023 as we managed our expenses.”He added, “We are capitalizing on opportunities to leverage and build the physician dispensed channel by promoting our new Avenova Allograft through an extensive marketing campaign targeting U.S. ophthalmologists and optometrists. As with our other best-in-class eyecare products, Avenova Allograft has distinct advantages that include being the only ophthalmic allograft manufactured using a patented six-step BioREtain process that preserves the natural integrity of the placental tissue."We anticipate a strong finish to 2023 for our DERMAdoctor brand with marketing programs focused on 11/11, China’s biggest online shopping event, as well as various programs and promotions for the upcoming holiday season,” Hall said.Total sales, net for the third quarter of 2023 was $3.3 million, compared with $3.8 million for the prior-year period, with the decrease primarily due to lower DERMAdoctor skincare product sales. Net product revenue for the third quarter of 2023 included $2.4 million of Avenova-branded eyecare product sales, $0.8 million of DERMAdoctor skincare product sales and $0.1 million of PhaseOne wound care product sales.Net loss attributable to common stockholders for the third quarter of 2023 was $1.8 million. This compares with a net loss attributable to common stockholders for the third quarter of 2022 of $5.8 million.Gross margin on net product revenue for the third quarter of 2023 was 56 percent, compared with 62 percent for the third quarter of 2022, with the decrease primarily due to product and channel mix.Total operating expenses for the third quarter of 2023 were $3.0 million, compared with $2.8 million for the third quarter of 2022. Sales and marketing expenses were $1.7 million, a 7 percent decrease from $1.8 million for the prior year, reflecting lower digital advertising costs and lower expenses for outside professional services.Total sales, net for the nine months ended Sept. 30, 2023 was $11.0 million, an increase of 2 percent from $10.8 million for the nine months ended Sept. 30, 2022.