NovaBay Pharmaceuticals (NBY) Stock Heads Up On Shareholder Letter

NovaBay Pharmaceuticals NBY Stock News

In a press release issued early this morning, NovaBay Pharmaceuticals, Inc. (NYSEAMERICAN: NBY) published a letter to shareholders from its CEO, Justin M. Hall. In the letter, Hall outlined the work that the company is doing in the face of the COVID-19 pandemic, exciting investors about the revenue growth that could be ahead. Here’s what’s going on:

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NBY Stock Heads Up On Shareholder Letter

In the letter, Mr. Hall started by pointing to the lifting of shelter-in-place orders across various areas across the United States. The CEO of NovaBay Pharmaceuticals pointed to the fact that as the economy works to open, there will be several products needed to help keep Americans safe.

Of course, this is why NBY worked to secure various personal protection and diagnostic products in the face of the pandemic. At the same time, the company has been continuing to move forward with cost-efficient sales and marketing strategies for Avenova.

To this end, Just Hall said:

I’m gratified to report this parallel strategy is working very well, with combined product sales in the month of April surpassing total revenue for the entire first quarter.

The NBY CEO said that the company began selling KN95 masks on its website less than two months ago, and has seen an incredible response. In fact, nearly one million units of these masks have already been sold.

Importantly, these masks seem to be far more effective than others on the market. As such, NBY said that its mask partner has submitted the KN95 masks for EUA from the FDA to further validate their quality.

Importantly, while there is a mask shortage in place, NovaBay Pharmaceuticals’ head executive said that the company has a large stock of masks here in the United States and ready for immedicate shipping. In fact, customers are generally receiving their masks within one or two days of ordering.

Nonetheless, Hall went on to explain that the bulk of current volume has come from large instititions. Moreover, he expects that this pattern will continue in the near term with sales expected to remain steady with April levels.

Hall also said that NBY set up a combination pakc. The pack includes 30 face masks as well as two bottles of its flagship product, Avenova, for $199. Importantly, Avenova has antimicrobial properties, helping customers keep bacteria off of their face. As a result, the spray is expected to be a great compliment to the protection offered by face masks.

Hall also touched on the company’s work to bring a point of care COVID-19 antibody test to market. In fact, the coapny filed for Emergency Use Authorization in the United States back in mid-April. However, no word has been heard as the FDA is working through a intense backlog of COVID-19-related submissions.

NBY seems to be confident that the EUA will be granted by the FDA, with Justin Hall saying:

Once granted, we will begin marketing the tests through our sales team to healthcare professionals across the country.

Importantly, NovaBay Pharmaceuticals believe that the antibacterial and antimicrobial nature of the active ingredient in its Avenova face spray will lead to an increase in demand due to the SARS-CoV-2 pandemic.

At the moment, the company is conducting third-party laboratory tests to verify the efficacy of the face spray against COVID-19.

This Is All Big News

NovaBay Pharmaceuticals is in the midst of exciting times. First and foremost, the company’s decision to get into the face mask market while a shortage began to show its face is paying off. With nearly 1 million masks sold, demand is obviously strong, and Hall believes that it will continue this way. Of course, that means stronger revenues are likely ahead.

Moreover, NBY has been marketing Avenova well before anyone knew that the COVID-19 pandemic will hit. That means that manufacturing is in place and the product is already readilly availalbe. Now, with the statements by Mr. Hall in mind, the company is likely to start promoting the product as a way to protect yourself against COVID-19. As such, sales are likely to tick up here as well, leading to further growth in revenue.

While we are still waiting on approval for the company to move forward with the sale of its COVID-19 diagnostic tests in the United States, once they are approved, this could be yet another huge opportunity. The test looks for antibodies, letting physicians know if a patient has had COVID-19 in the past within 10 minutes of extracting the sample. That could be huge!

All in all, NBY is working to make the right moves in the face of COVID-19. As such, the company’s revenue isn’t only sitting still, it is likely to grow. As such, NBY is a stock that’s worth paying attention to.

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