Pioneer Pharma, which is affiliated with Naqu Area Pioneer Pharma of Shanghai, has invested $2.5m into NovaBay Pharma, a clinical-stage biotechnology company focused on developing its proprietary and patented Aganocide® compounds in return for 2 million shares at $1.25 per share and an additional warrant to buy additional shares at $1.50 per share. NovaBay is currently trading at $1.31.
The investment is part of deal that gives Pioneer the right to market NovaBay’s anti-infective wound-cleaning product, NeutroPhase, in China and Southeast Asia.
In September, Pioneer signed an exclusive distribution agreement with NovaBay Pharmaceuticals to sell its advanced wound care product NeutroPhase® both in China and South East Asia, making a two-tranche equity investment in NovaBay common stock that could reach $5.5m.