Pharmaceuticals and Galderma
will collaborate to develop and commercialize NovaBay's Aganocide
® compounds. The exclusive agreement is worldwide in scope, with the exception of certain Asian markets, and covers all major dermatological conditions, excluding onychomycosis (nail fungus) and orphan drug indications.
NovaBay expects to receive from Galderma up to $50 million upon achievement of certain development and regulatory milestones related to the acne and impetigo indications and future royalties on net sales of products. The agreement also envisages further cooperation for additional dermatological products and indications. NovaBay will also receive escalating double-digit royalties on net sales of products.
Galderma will be responsible for the development costs of the acne and other indications, except in Japan, and for the ongoing development program for impetigo, upon the achievement of a specified milestone. Galderma will also reimburse NovaBay for the use of its personnel in support of the collaboration. NovaBay retains the right to co-market products resulting from the agreement in Japan. In addition, NovaBay has retained all rights in other Asian markets outside Japan, and has exclusive rights to promote the products developed under the agreement in the hospital and other healthcare institutions in North America.
The Aganocide compounds are synthetic N-chlorinated antimicrobial molecules specifically designed by NovaBay to mimic the body's natural defense against infection. The Aganocide compounds have shown, in preclinical trials to date, to be highly effective against the bacteria, viruses and fungi associated with a wide range of dermatological and other conditions, according to the company.