EMERYVILLE, Calif., Dec. 6, 2010 (GLOBE NEWSWIRE) -- NovaBay Pharmaceuticals, Inc. (NYSE Amex:NBY), a clinical stage biotechnology company developing first-in-class, anti-infective compounds for the treatment and prevention of antibiotic-resistant infections, and Galderma, a global leading pharmaceutical company dedicated exclusively to the field of dermatology, announce the expansion of their multi-year collaboration agreement. Based on positive data assessing the activity of NovaBay's Aganocide ® compounds against impetigo, Galderma has agreed to exercise its option for this indication. Dr. Ron Najafi, Chairman and CEO of NovaBay, commented, "We are very pleased with Galderma's decision to exercise their option. Galderma is the world's largest dermatology company with impressive clinical and commercial capabilities. This provides further evidence of Galderma's commitment to commercializing NovaBay's Aganocides for dermatological indications and we look forward to advancing these programs through clinical trials to commercialization." Humberto C. Antunes, CEO of Galderma, commented, "This enhancement of our collaboration demonstrates our belief that NovaBay's first-in-class Aganocides have the potential to provide a significant advancement in the treatment of skin infections, a condition that affects millions of patients worldwide, without adding to the growing problem of antibiotic resistance. Galderma is looking forward to advancing the Aganocide programs for multiple indications." Under the terms of the new agreement, which was initially signed in March 2009 for the research and development of impetigo and acne, Galderma has agreed to exercise its option to advance the clinical development program and will pay a $3.25 million continuation fee together with additional R&D funding in 2010 and 2011. NovaBay has the potential to receive up to $62 million in milestones from Galderma, and escalating double-digit royalties on net sales of products once commercialized. Galderma will be financially responsible for all the development and clinical costs, and will reimburse NovaBay for the costs incurred in support of the collaboration. NovaBay retains the right to co-market products resulting from the agreement in Japan. In addition, NovaBay has retained rights in certain Asian markets outside of Japan, and has exclusive rights to promote the products developed under the agreement in hospital and other healthcare institutions in North America.