NovaBay Pharmaceuticals, Inc. and BioStem Technologies, Inc. announced an agreement under which NovaBay has been granted the right to commercialize BioStem Technologies' Amniotic Tissue Allograft, which is intended for use as a protective covering during the repair of ocular surfaces. Amniotic Tissue AllOGraft provides a protective environment or covering for repair of the cornea and conjunctiva, helping ocular surface to return to a healthier state. NovaBay intends to commercialize the prescription-only product as Avenova Allograft to leverage its Avenova eyecare brand and encourage use with other Avenova products.

Medically necessary procedures with the Avenova Allograft will be reimbursed through Medicare. Placentally derived human amniotic membrane is a potent source of pro-healing growth factors and anti-inflammatory cytokines. Amniotic allografts have successfully been used in regenerative medicine for over a century and dehydrated human amniotic membrane continues to be widely used as an ophthalmic covering.

Avenova Allograft is the only optic allograft manufactured using BioStem Technologies' patented six-step BioREtain process that preserves the natural integrity of the placental tissue. This new NovaBay-branded product will compete in the global ophthalmology amniotic membrane market estimated at $403.6 million in 2022, and is expected to grow at 9.8% per year between 2023-2030.