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NovaBay Pharmaceuticals, Inc. Announces Fourth Quarter and Full Year 2008 Financial Results
Date:4/1/2009

in December 2008. This patent will expire in 2026. NovaBay has recently filed additional patent applications that cover compositions of matter of additional Aganocide compounds, methods of use and formulations, and is preparing further applications in other areas.

Financial Results

Fourth Quarter 2008 Financial Results

License and collaboration revenue for the fourth quarter of 2008 increased 44% to $2.2 million from $1.5 million for the fourth quarter of 2007. License and collaboration revenue consists of the amortization of the upfront technology access fees previously paid, and reimbursements for the funding of research and development activities.

The net loss for the fourth quarter of 2008 was $(1.5) million, or $(0.07) per share, compared to a net loss of $(1.4) million, or $(0.09) per share, reported for the fourth quarter of 2007.

Research and development expenses for the quarter ended December 31, 2008 totaled $3.3 million, compared to $1.8 million for the quarter ended December 31, 2007. The increase was largely due to the timing of pre-clinical and clinical trials.

General and administrative expenses for the quarter ended December 31, 2008 were $0.5 million, compared to $1.2 million in the comparable 2007 period.

NovaBay ended the quarter and year with $12.1 million in cash and cash equivalents.

Full Year 2008 Financial Results

For the full year 2008, license and collaboration revenue totaled $6.7 million, compared to $5.9 for the year 2007.

NovaBay reported a net loss of $(8.1) million, or $(0.38) per share, for the full year 2008, compared to a net loss of $(5.4) million, or $(0.60) per share, for the full year 2007.

Research and development expenses for the full year 2008 were $9.6 million compared with
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