Stocks To Watch: NovaBay Pharmaceuticals, Inc. [NYSE: NBY] was one of the biggest gainers in Monday’s trading session. The stock closed the day with gains of 34.31%. This price action was triggered by the company’s strong Q2 results. The company reported net sales of roughly $1.8 million. Out of these, sales for its top-selling eye care product, Avenova, were $1.6 million. These numbers indicate that Avenova sales grew by about 9%, when compared to Q1 numbers.
The company announced that it hit these impressive sales numbers, in spite of a 67% reduction in its sales personnel. The reduction in salesforce was a change in strategy to align the company, with an emerging trend that is leaning more towards high-deductible health plans. The CEO, Justin Hall, hailed these increased sales as a sign of success in the company’s new strategy.
The company also announced that it had reaped benefits from its partner pharmacy program. Under this program, it sells Avenova at pre-negotiated prices, to cut on the negative effect of rebates. This program has been so successful that it accounted for about 50% of all Avenova sold in Q2. It also introduced direct channels, whereby, it sells the product directly to clients via Amazon. These strategies have helped cut operating costs by roughly 47%.
NBY is easing up pre-market, it is still holding above $1.24, which is a key support level on the 5-day chart. The other key level to watch in the day will be Monday’s high of $1.60 and low of $1.23. This could offer some resistance and support in the day, but if it breaks either side, it would be an indicator that investors are getting more bullish or bearish on NBY in the short-term.