NovaBay Pharmaceuticals NBY Stock News

NovaBay Pharmaceuticals, Inc. (NYSEAMERICAN: NBY) is seeing massive gains, trading up more than 240% this morning after announcing that it has launched a product on Amazon.com (NASDAQ: AMZN). Here’s what’s going on: 

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NBY Announces AMZN Launch

As mentioned above, NovaBay Pharmaceuticals is having a great day in the market after announcing a launch on Amazon.com. In a press release issued early this monring, the company said that it has launched Avenova Direct with affordable pricing and without a prescription being required on Amazon.com. 

Avenova is an eyelid and eye lash spray. The product was designed to remove bacteria and debris on and around the eyelid that is known to contribute to bacterial eye infections. These infections account for about 85% of the dry eye market. 

The launch on Amazon.com gives consumers the ability to purchase Avenova in the 20ml size for just $29.99. In a statement, Justin Hall, Interim President and CEO at NBY, had the following to offer:

Patients throughout the U.S. can now purchase Avenova Direct without a prescription in Avenova’s original prescription formulation. For many years, the bacterial microorganisms that are the underlying cause of the vast majority of dry eye cases were almost impossible to manage. Avenova Direct effectively manages bacterial dry eye through our pure 0.1% hypochlorous acid formulation in saline, which is free from bleach, surfactants and other impurities. I firmly believe this is the best product available for the topical treatment of these chronic ocular bacterial infections.

While prescription Avenova continues to be available through retail pharmacies and direct in-office sales by certain eye care specialists, patients and physicians have asked for greater accessibility to the product. In response, we are launching our new U.S. direct-to-consumer channel, which is a significant step in ensuring easy access at an affordable price. This direct channel further provides NovaBay with set pricing that is not impacted by the current health plan reimbursement environment.

This Is Big News For NovaBay Pharmaceuticals

At the end of the day, there’s a good reason that NBY is gaining in multiples today. First and foremost, the product launch is taking place on Amazon.com. This is the world’s leading online retailer, giving the company and its product exposure to a massive online audience. Ultimately, this should kickstart strong revenue growth for the company. 

Not to mention, the dry eye market is a massive and growing one. In fact, current estimates suggest that the industry will be worth more than $7.7 billion by the year 2025. While it would be unreasonable to suggest that NovaBay Pharmaceuticals would take this entire market, or even half of it, with just a $20 million market cap, even skimming a small percentage of this market value off of the top would be meaningful for NBY and its investors. 

So, not only is the company launching a product in a large market with the potential to lead to incredible gains in revenue, it has chosen the world’s largest eCommerce platform for the launch, giving it access to a massive targeted audience. 

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Final Thoughts

The launch announced by NBY will likely propel revenue, which is why investors are so excited. While we may see dips from the tremendous highs that we’re seeing today, in the long run, the launch opens the door to incredible potential. 

What Do You Think?

Where do you think NBY is headed moving forward? Join the discussion in the comments below!

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