EMERYVILLE, Calif.—NovaBay Pharmaceuticals (NYSE American: NBY) announced that it is investing $5 million to support the recent strategic shift in its U.S. commercialization strategy aimed at driving sales growth for its Avenova lid and lash cleaner while maintaining cost effectiveness. The investments include a convertible loan of $2.0 million from Ascendiant Capital Markets and Chicago Venture Partners. Additionally, Triton Funds LP has committed to making an equity investment of up to $3 million, the company said in a statement.

The announcement follows the release last Friday of NovaBay’s financial results for full year 2018 and fourth quarter, which revealed a net loss of 31.3 percent for 2018 and 43 percent for fourth quarter 2018.

“We are dedicated to our ongoing and long-lasting commitment to eyecare professionals and patients suffering from dry eye disease, while capitalizing on the significant opportunity afforded by Avenova,” said Justin Hall, interim president and CEO. “We are executing on our strategic shift toward a cost-efficient growth strategy, having already deployed our sales representatives in high-performing territories and territories with significant prescription volume potential and favorable health plan coverage in support of Avenova per-unit revenue. We appreciate the confidence of our investors who are dedicated to both NovaBay and Avenova’s success in addressing this significant market need.

“Importantly, I’m affirming our position that Avenova is the best topical product available to treat chronic bacterial infections that affect about 85 percent of those suffering from dry eye disease,” added Hall. “Avenova addresses a sizable market comprised of millions of Americans who suffer from blepharitis and dry eye, as well as those who undergo ophthalmic procedures such as Lasik, retinal and cataract surgeries, or experience contact lens intolerance issues.

"We have an established position in the dry eye market with more than 827,000 prescriptions filled since Avenova’s launch in 2015. The addition of more than 2,400 new prescribers in 2018 brings total Avenova prescribers to approximately 15,000. We are fully committed to providing ongoing, long-term and broad access to Avenova to eyecare professionals and patients. We are now providing that access under a model that makes economic sense for NovaBay.”