NovaBay Pharmaceuticals Receives Notice of Allowance on Anti-infective NVC-612 and Related Compounds

By July 15, 2010

NovaBay Pharmaceuticals, Inc. (AMEX: NBY, www.novabaypharma.com) announced today that it has received a Notice of Allowance from the United States Patent and Trademark Office on a patent application for a broad portfolio of anti-infective compounds, including NVC-612. The patent will broaden protection for NovaBay’s first-in-class Aganocide® family of compounds, which are designed to fight infections without causing drug resistance.

The patent will cover compositions of matter and methods of use for NVC-612 and related compounds, all of which have a unique mechanism of action toward microorganisms. This new patent complements NovaBay’s existing collection of more than 20 patents and pending patent applications on its proprietary technology platforms. NovaBay holds a patent for its lead anti-infective compound, NVC-422, and has a license to a broad portfolio of pending patent applications covering N-Chlorotaurine(NCT), the naturally occurring antimicrobial molecule from which NovaBay’s technology is derived. NVC-422 is currently being studied in four Phase 2 clinical trials for conjunctivitis(Pink Eye), the skin infection impetigo, catheter-associated urinary tract infection, and acne.

“This latest patent will further protect NovaBay’s intellectual property, as the company expands its pipeline of first-in-class non-antibiotic anti-infectives to address additional indications,” said Dr. Mark Anderson, Chief Scientific Officer. “NovaBay’s Aganocide compounds for treating non-systemic, topical infections are designed to rapidly fight infection without causing drug-resistance. This is increasingly important as resistance to antibiotics is becoming a growing public health concern worldwide.”

About Aganocide Compounds
The Aganocide compounds are novel, proprietary, synthetic N-chlorinated antimicrobial molecules specifically developed by NovaBay to mimic the body’s natural defense against infection. The Aganocide compounds maintain biological activities while demonstrating improved stability over the naturally occurring N-chlorinated antimicrobial molecules. These highly differentiated, first-in-class, small-molecule, new chemical entities may deliver the same or better efficacy than currently used antibiotics without contributing to the growing rise of antibiotic-resistant bacterial strains. In preclinical testing, the Aganocide compounds have been shown to be highly effective against bacteria, including multi-drug resistant strains(such as MRSA), as well as viruses and fungi. They also have been demonstrated to be effective against bacteria in biofilm, which render most antibiotics ineffective. The Aganocide compounds have a broad therapeutic index while providing a high degree of potency and tolerability as well as dosing versatility and flexibility.

About NovaBay Pharmaceuticals, Inc.
NovaBay Pharmaceuticals is a clinical stage biotechnology company focused on developing its proprietary Aganocide compounds, which are novel, synthetic anti-infective product candidates with equivalent activity to the active antimicrobial molecules generated within white blood cells. NovaBay’s Aganocide compounds are being developed to treat and prevent a wide range of infections without causing bacterial resistance. NovaBay has internal development programs aimed at addressing hospital and respiratory infections. The company has a license and research collaboration agreement with Alcon, Inc. for use of its Aganocide compounds to treat eye, ear and sinus infections as well as for contact lens care. NovaBay has also entered into an agreement with Galderma S.A. to develop and commercialize Aganocide compounds in acne, impetigo and other dermatological indications. For more information on NovaBay, visit:www.novabaypharma.com

Cautionary Information Regarding Forward-Looking Statements
The statements in this press release of NovaBay’s expectations regarding the benefits that NovaBay will obtain from the patent on NVC-612, and NovaBay’s Aganocide compounds’ potential to treat a broad range of infections without causing resistance are forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others, the risk that results obtained in preclinical studies may not be obtained in humans, and the risk that the Aganocide compounds may not deliver the same or better efficacy than currently used antibiotics without contributing to the growing rise of bacterial resistance. Other risks relating to NovaBay and its Aganocide compounds, including risks that could cause results to differ materially from those projected in the forward-looking statements in this press release, are detailed in NovaBay’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, under the caption “Risk Factors” in Item 1A of Part II of that report, filed with the Securities and Exchange Commission on May 12, 2010. The forward-looking statements in this release speak only as of this date, and NovaBay disclaims any intent or obligation to revise or update publicly any forward-looking statement except as required by law.

Contact

Investors:
NovaBay Pharmaceuticals Contacts
Thomas J. Paulson  
Chief Financial Officer
510-899-8809
Contact Thomas Paulson

Media:
NovaBay Pharmaceuticals, Inc.
Susan Thomas
Director of Corporate Communications
510-899-8841
sthomas@novabaypharma.com

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