NovaBay Pharmaceuticals NBY Stock News

NovaBay Pharmaceuticals, Inc. (NYSEAMERICAN: NBY) is making a run for the top in the market this morning after the company announced strong sales in the second quarter. As a result of the announcement, NBY is trading on gains of more than 36%. Here’s the scoop:

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NBY Stock Rockets On Strong Sales

NovaBay Pharmaceuticals issued a press release early this morning, announcing that it would be holding its second quarter conference call on August 8, 2019. However, the big news was sales.

In the release, NBY said that it has had strong success in commercializing Avenova. The company said that in the quarter, it generated net sales of the product in the amount of $1.6 million. This shows a 9% increase over the first quarter.

Moreover, sales in the three months ended June 30, 2019 amounted to $1.8 million. This shows that we are continuing to see an uptick in sales volume.

This is even more impressive when you consider the 67% reduction in the sales team that the company recently underwent. Moreover, operating expenses were down by nearly 50% quarter over quarter.

In a statement, Justin Hall, President and CEO at NBY, had the following to offer:

The increase in Avenova sales over the prior quarter is particularly impressive given the 67% reduction we made to our salesforce in March as part of a strategic shift to address the trend toward high-deductible health plans.

Our ability to grow Avenova sales reflects success with our strategy of deploying the remaining 15 sales representatives in territories identified as having significant prescription volume along with favorable reimbursement.

We also benefitted from the expansion of our partner pharmacy program, under which we sell Avenova at pre-negotiated unit prices and significantly reduce the negative impact of rebates. I’m pleased to report that this channel accounted for nearly half of all Avenova units sold in the second quarter, up from about one-quarter in the first quarter.

We also introduced our new Avenova Direct channel whereby we are selling prescription-strength Avenova directly to customers on Amazon. We expect the greatest growth opportunity to come from this channel.

While Avenova sales grew for the quarter, we reduced operating expenses by 47% from the first quarter. This is a huge testament to the dedication of the NovaBay team.

Incredible Potential Ahead

The fact of the matter is that NovaBay Pharmaceuticals is making big moves and they are all in the right direction. Recently, the company underwent a drastic change in its sales force.

With this reduction in team size also came an overhaul of the sales process. The company clearly achieved its goal of addressing high value sales opportunities through a refined sales strategy.

With expenses seeing a dramatic reduction and sales seeing strong, consistent gains, NBY is setting the stage for strong growth ahead.

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