NovaBay announces third quarter 2007 financi... ( EMERYVILLE CA Nov. 15 / NovaBayPh...)

NovaBay announces third quarter 2007 financial results

Date:11/15/2007

EMERYVILLE, CA, Nov. 15 /PRNewswire-FirstCall/ - NovaBay Pharmaceuticals, Inc. (AMEX & TSX: NBY), a biopharmaceutical company focused on developing non-antibiotic anti-infective products targeting the treatment or prevention of a wide range of bacterial and viral infections, today reported results for the third quarter ended September 30, 2007.

Net loss for the quarter ended September 30, 2007 was $1.6 million, or $0.24 per share, as compared to a net loss of $1.5 million, or $0.24 per share, for the third quarter of 2006. For the nine months ended September 30, 2007, NovaBay reported a net loss of $4.0 million, or $0.62 per share, as compared to a net loss of $4.2 million, or $0.76 per share, for the nine months ended September 30, 2006.

As of September 30, 2007, NovaBay had $6.9 million in cash, cash equivalents and investments. At September 30, 2007, there were outstanding 6,632,170 shares of common stock and 19,227,195 shares of preferred stock (which were convertible into 9,613,554 shares of common stock).

Recent Developments and Corporate Highlights:

On October 31, 2007, NovaBay completed its initial public offering of

5,000,000 shares of common stock at a price to the public of

$4.00 per share, and received net proceeds of approximately

$17.2 million after deducting underwriting discounts and commissions

of $1.4 million and other offering costs of approximately

$1.4 million. The underwriters have an option to purchase an

additional 750,000 shares of common stock until 30 days after the

closing of the IPO. Upon the closing of the IPO, all shares of

convertible preferred stock outstanding automatically converted into

9,613,554 shares of common stock. As of the closing of the initial

public offering, the Company had 21,254,474 shares of common stock