NovaBay Pharma (NBY) Misses Q1 EPS by 6c

NovaBay Pharma (NYSE: NBY) reported Q1 EPS of ($0.14), $0.06 worse than the analyst estimate of ($0.08).

“In combination with the salesforce reduction at the end of 2017, we paused our planned salesforce expansion in a seasonally slow revenue quarter to focus on identifying the most profitable territories,” said Mark M. Sieczkarek, NovaBay’s Chairman, President and CEO. “Although we experienced growth in unit volume for the quarter versus the prior-year period, our net revenue declined due to the increased impact of rebates. Pharmaceutical manufacturers are reporting that the outsized impact of rebates negatively impacted sales across many products during the first quarter, including Avenova.

“We flattened our sales organization to streamline communications and improve training and strategic execution. We are currently recruiting sales representatives in under-served territories. We will continue to hire new representatives before the end of 2018 in parallel with the progress we make on increasing insurance coverage on Avenova sales by managed care organizations.

“As an update on our initiative to obtain new or improved reimbursement, introductions have been made with a target group of top managed care prospects that we expect will lead to meaningful discussions in the second half of 2018,” he added. “We believe we have a powerful rationale with Avenova as the only prescription product clinically proven to reduce bacteria on ocular surfaces, which is the underlying cause of bacterial dry eye that represents approximately 85% of the total dry eye market.”

For earnings history and earnings-related data on NovaBay Pharma (NBY) click here.

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