NovaBay Pharmaceuticals Inc. (NYSEAMERICAN: NBY) has announced the signing of a definitive agreement to buy DERMAdoctor LLC for $15 million comprising of $12 million in cash upon closing and an extra $3 million in earnout payments subject to DERMAdoctor attaining prespecified financial milestones for fiscal 2022 and 2023.
DERMAdoctor specializes in skincare products
DERMAdoctor is a private firm that commercializes dermatological skincare products that include all its products, inventory, and IP. DERMAdoctor manufactures and sells products that include Ain’t Misbehavin’, Kakadu C, Calm Cool + Corrected, Wrinkle Revenge, and KP Duty. The products address acne, dark spots, aging skin, oily skin, dry skin, keratosis pilaris, fine lines and wrinkles, eczema, enlarged pores, hyperhidrosis, rosacea, and sensitive skin. DERMAdoctor distributes its products in large retailers like QVC, Macy’s, and Costco, as well as online beauty retailers like Amazon and SkinStore, and its own website. Most importantly, DERMAdoctor has an expanding international network of distributors and merchants.
NovaBay CEO Justin Hall said, “Having evaluated various strategic opportunities to expand NovaBay’s commercial presence in the beauty industry with complementary product offerings, DERMAdoctor stood out as the ideal fit commercially, while also supporting the goals of reaching profitability and enhancing stockholder value,”
Acquisition to enhance NovaBay’s presence in the US
Hall added, “This acquisition will significantly increase NovaBay’s presence in the U.S. beauty market with the addition of over 30 products currently sold by DERMAdoctor, which were developed under the leadership of Dr. Audrey Kunin, a well-known leader in the skincare product industry. The DERMAdoctor skincare products have been clinically formulated to be highly effective yet gentle on skin, characteristics of our own CelleRx Clinical Reset. We plan to employ our commercial organization’s expertise and industry relationships in combination with those of DERMAdoctor in order to broaden the distribution and future growth of our combined products to an expanded and more diverse customer base.”