AVENOVA – Going Beyond Antibiotics

Presented by NovaBay Pharmaceuticals

Dr. Ron NajafiFounder, President and CEO

Welcome

This presentation contains forward-looking statements, which are based upon management's current

expectations, assumptions, estimates, projections and beliefs. These statements include, but are not limited to,

statements regarding the anticipated market acceptance of our products, future sales of our products, and the

company’s expected future financial results. Forward-looking statements involve known and unknown risks,

uncertainties and other factors that may cause actual results or achievements to be materially different and

adverse from those expressed in or implied by the forward-looking statements. Factors that might cause or

contribute to such differences include, but are not limited to, risks and uncertainties relating to difficulties or

delays in manufacturing, distributing, and selling the company's products, unexpected adverse side effects or

inadequate therapeutic efficacy of our product, the uncertainty of patent protection for the company's

intellectual property, and the company's ability to obtain additional financing as necessary. Other risks

relating to NovaBay’s business, 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 latest Form 10-K

and Form 10-Q filings with the Securities and Exchange Commission, especially under the heading "Risk

Factors." 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.

Forward-Looking Statements

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Agenda – Avenova: GoingBeyond Antibiotics

• Welcome and Company Overview

• Dr. Ron Najafi, President & CEO, NovaBay Pharmaceuticals

• Ophthalmology and Optometry Panel

• Eric Donnenfeld, M.D. (Moderator)

• Hank Perry, M.D.

• Katherine Mastrota, O.D.

• Brian Rosenblatt, O.D.

• Ivan Mac, M.D.

• Avenova in the Market

• Glenn Moro, Vice President of Sales and Marketing, NovaBay Pharmaceuticals

• Conclusion – Dr. Ron Najafi

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Eric D. Donnenfeld, M.D.Ophthalmic Consultants of Long Island

Clinical Professor of Ophthalmology NYU

Trustee Dartmouth Medical School

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Ivan Mac, MD/MBAMetrolina Eye Associates, PLLC

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Katherine M. Mastrota, M.S., O.D., F.A.A.O.

Center Director of Omni Eye Surgery

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Henry D. Perry, M.D.Ophthalmic Consultants of Long Island

Chief of the Cornea Service at Nassau University Medical Center

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Brian D. Rosenblatt, O.D.Rosenblatt Family Eye Care Associates

Raritan, New Jersey

1. Revenue growth from commercial products

• Grow US sales of Avenova

• Capitalize on large market opportunity in poorly served markets with FDA-cleared products

2. Innovation

• Develop, introduce innovative eye care products in next 12-18 months

3. Monetization of non-strategic assets

• Remain committed to existing partnerships

• License / sell select assets in urology, dermatology, wound care and plastic surgery to monetize assets

Achieve near-term revenue growth

and ultimately profitability

Strategic Focus on Eye CareAimed at Commercial Growth and Business Success

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Value Proposition –US Avenova Launch

•30 million blepharitis and dry eye patients•3 million cataract + 2 million refractive surgery patients

Addressing Poorly Served Market

•35 medical reps in major U.S. markets•Ramp up to 50 reps = 80% market reach•AmerisourceBergen, Cardinal, McKesson = 90% of pharmacies

Commercializing FDA-Cleared

Product

•OTC products – dilute soap•Systemic antibiotics, anti-inflammatory - resistance issues •Only product based on proprietary anti-infective compound

Effectively No Competition

•Anti-infective activity validated by clinical studies•Formulation & Methods of Use to 2030•Large-scale manufacturing in place

Validated Platform/

Important IP

•VP Sales with 27 years at Alcon as Global Marketing Head•Head of Ophthalmology with 21 years at Alcon, Head of Anti-

infective Drug Development

Well-conceived Product Launch

Strategy

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Financial Results: 1Q15 vs. 1Q14

• Product revenue of $492,000 (Avenova and NeutroPhase) compared with $188,000 and gross profit of $344,000 compared with $58,000

• Increases in product revenue and gross profit due to Avenova commercialization

• License, collaboration, distribution and other revenue of $46,000

• Net loss of $4.6 million, or $0.09 per share, compared with a net loss of $3.6 million, or $0.08 per share,

• Reflects increased spending on sales and marketing activities for Avenova; lower spending on R&D

• R&D expenses of $1.6 million; SG&A of $3.4 million

• Cash, cash equivalents and short-term investments of $5.6 million as of March 31, 2015, included $4.5 million from equity financing in March 2015

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Sales Ramping Up ($000)Momentum Continues

to Build in 2015

• Q1’15 more than doubled over Q4’14

• Q4’14 more than doubled over Q3’14

• Earning pharmaceutical-like margins

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• Signs and symptoms: Itchy, sore, red eyelids; eyelids stick together; burning, gritty sensation; photophobia; edges of eyelids swollen; contact lenses uncomfortable to wear; abnormal eyelash growth or eyelash loss

• High incidence

• 37% of patients seen by ophthalmologists

• 47% of patients seen by optometrists

• Most common cause is staphylococcus bacteria

• Complications include dry eye syndrome, conjunctivitis, meibomian cysts, styes, cornea damage

• Standard of care is warm compresses, lid wipes, antibiotics

What is Blepharitis?

Blepharon, Greek “eyelid”+ itis–inflammatory disease

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Anatomy of Eye, Lid and Meibomian Gland

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Blepharitis: Infection andInflammation of Eyelid

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Typical Case

• Vision: OD 20/30, OS 20/20-

• TAP: OD 21, OS 23

• Exam

• Blepharitis

• Debris on lashes

• Conjunctival hyperemia

White Blood Cell in ActionThe Foundation of NovaBay Technology

N-Chlorotaurine (NCT)Natural compound

Rapid actingeffective

BUT unstable

White Blood Cell

Red Blood Cells

Invading Microbe

Neutrox™

NovaBay’s proprietary, pure Hypochlorous Acid solution

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• Excellent activity against a broad range of pathogens

• Fast acting onset of activity

• Effective against pathogens commonly found on the lids & lashes

Broad-spectrum In-vitro Antimicrobial Activity

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Case Study #1 -

Compelling Results

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Case Study #2 -

Compelling Results

• 25 MD visits between late 2008 to late 2012

• Rx for antibiotics between visits

• Received courses of bacitracin, neomycin, polymyxin, tobradex, maxitrol, zylet, oral doxy

• Patient developed skin ulcer from OTC wipes

• Eczema-type reaction due to detergent-based components

• 10% using OTC wipes develop contact dermatitis

• Using Avenova since early 2013 and has not required any antibiotics or steroids

Patient Case History: Chronic Blepharitis

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Easy to Use

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Ingredients = Pure Hypochlorous Acid + Saline

OCuSoft SteriLid Oasis Lid and Lash

LIDCLENZ VisiCleanse Eye Scrub

Water , PEG-80 Sorbitan Laurate , Sodium Tricedeth Sulfate , PEG-150 Distearate , Disodium Lauroamphodiacetate, Cocamidopropyl Hydroxysultaine , Sodium Laureth-13 Carboxylate , Sodium Chloride , Quaternium-15

Water , PEG 80 , Sorbitan Laurate , Sodium Trideceth Sulfate , Cocamidopropyl Betaine , Sodium, Lauroamphoacetate , PEG 150 Distearate , Sodium Laureth 13 Carboxylate , Linalool Oil , Hepes Acetate , Sodium Perborate Monohydrate , Panthenol , Allantoin (Comfrey Root) , Sodium Chloride , Tea Tree (Melaleuca Alternifolia) Oil , Tris EDTA , Boric Acid , Cocamidopropyl PG Dimonium Chloride , Etridronic Acid , Citric Acid for pH adjustment , Sodium Hydroxide for pH adjustment

Water, Poloxamer, Polyethylene, Glycol,Borate,Hyaluronan,Methylparaben, Carbopol 940

non-foaming pH balanced formulation of non-ionic surfactant in purified water

Water, Cocamidopropyl Betaine, PEG-80 Sorbitan, Laurate, Sodium Trideceth Sulfate, PEG-150 Distearate, Aloe, Barbadensis Leaf Extract, Chamomilla Recutita (Matricaria) Flower, Extract, Cucumis Sativus (Cucumber) Fruit Extract, Althaea Officinalis, Root Extract, Avena Sativa (Oat) Kernel Extract, Tetrasodium EDTA, Citric Acid, PolyaminopropylBiguanide

Water USP (Purified), PEG 200 Hydrogenated Glyceryl Palmate, Disodium Laureth Sulfosuccinate, Cocoamidopropylamine Oxide, PEG 80 Glyceryl Cocoate, Benzyl Alcohol, Edetate Disodium

Does not generate

Resistance

Mechanical Debridement

Anti-ToxinAnti-biofilm Activity

Bacterial Removal✓

✓ ✓

✓

✓

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Intellectual Property

• Aganocide® compounds (NVC-422 and others)

• 10 issued US patents

• 89 issued foreign patents

• 37 other patent applications pending in 15 patent families

• Composition-of-matter patent protection through at least 2024

• Neutrox™ hypochlorous acid (NVC-101)

• 2 issued US patents

• 8 issued foreign patents

• 2 other patent applications pending in 1 patent family

Avenova and the Importance of Ocular Surface Disease

Eric D. Donnenfeld, M.D.Ophthalmic Consultants of Long Island

Clinical Professor of Ophthalmology NYU

Trustee Dartmouth Medical School

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Disclosure

I am a consultant for:• Acufocus

• Allergan

• Alcon

• AMO

• Aquesys

• Bausch & Lomb

• CRST

• Elenza

• Glaukos

• Kala

• Lacripen

• Lensx

• Mati Pharmaceuticals

• Merck

• Mimetogen

• NovaBay

• Odyssey

• Pfizer

• PRN

• QLT

• RPS

• Sarcode

• Strathspey Crown

• Tearlab

• TearScience

• TLC Laser Centers

• TrueVision

• Wavetec

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Advanced Technology is Dramatically Improving Visual Outcomes

• Over the past decade major improvements in cataract and refractive surgery have dramatically increased safety and quality of vision

• Aspheric IOLs

• Multifocal and accommodating IOLs

• Custom ablations in laser vision correction

• Femtosecond laser cataract surgery

• Cataract surgery and refractive surgery are merging into a single entity

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The Tear Film is the Most Important Refracting Surface of the Eye

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Ocular Surface Disease andRefractive Surgery

• Quality of vision starts with a healthy tear film.

• All of the recent advances in technology are lost with even minimal disruption of the ocular surface.

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The Prevalence of Dry Eye

• Affects about 15% of the population in the US (about 5 million elderly) 1,2,3

• Potentially affects tens of millions more Americans.3

• With an aging demographic, environmental changes, and increasing visual tasking demands, dry eye remains one of the greatest unmet needs for your patients!

1. Moss SE, et al. Prevalence and risk factors for dry eye syndrome. Arch Ophthalmol. 2000;118:1264-8.

2. Schein OD, Muñoz B, Tielsch JM, et al. Prevalence of dry eye among the elderly. Am J Ophthalmol. 1997;124(6):723-8.

3. Lemp MA, Baudouin C, Baum J, et al. The epidemiology of dry eye disease: report of the Epidemiology Subcommittee of the International Dry Eye Workshop (2007).Ocul Surf. 2007 Apr;5(2):93-107.

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Majority of DED Patients Have Evidence of Evaporative Dry Eye (EDE)

• 86% of patients with a classified DED subtype demonstrated signs of MGD

• Pure ADDE subtype represented the smallest percentage of patients (~10%)

ADDE

EDE

Mixed

Non-ADDE +Non-EDE

Lemp MA, et al. Cornea. 2012;31:472-478.

• 86% of patients with a classified DED subtype demonstrated signs of MGD

• Pure ADDE subtype represented the smallest percentage of patients (~10%)

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When You Think of Dry Eye

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Don’t Forget Meibomian Gland Disease

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Meibomian Gland Dysfunction

Ophthalmic Consultants of Long Island

Saponification (Foamy Tears)

Chronic blepharitis

Acute chalazion

Pouting meibomian gland orifices with neovascularization of the lid margin

Prevalence of Meibomian GlandDysfunction, A Leading Causeof Dry Eye Disease

MGD is present in ~37% of entire ophthalmic practice patients and ~47% of optometric practice patients1

“Meibomian gland dysfunction (MGD) may well be the leading cause of dry eye disease throughout the world.”2

—The International Workshop on Meibomian Gland Dysfunction: Executive Summary

1. Lemp MA, Nichols KK. Blepharitis in the United States 2009: a survey-based perspective on prevalence and treatment. Ocul Surf. 2009;7(2 Suppl):S1-S14.

2. Nichols KK, et al. The international workshop on meibomian gland dysfunction: executive summary. Invest Ophthalmol Vis Sci. 2011;52(4):1922-1929.

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Summary

• Dry eye is prevalent, chronic, and progressive

• MGD is the most common cause of dry eye

• Appropriate diagnosis is important

• Traditional dry eye treatments are ineffective

• Avenova is a novel and important treatment for this common problem

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Prevention of Endophthalmitis

Henry D. Perry, M.D.Ophthalmic Consultants of Long Island

Chief of the Cornea Service at Nassau University Medical Center

Disclosures- Consultant or Grant Support

• Alcon

• Allergan

• AMO

• Bausch and Lomb

• Ciba

• Eagle Vision

• Ista

• Millenium

• NovaBay

• Omeros

• Santen

• Sirion

Endophthalmitis

• Most devastating potential adverse event following cataract surgery

• Can become severe within 12 hours and destroy vision within days

• Organisms causing endophthalmitis usually originate from patient’s own lid margin1

1 Speaker et al. Ophthalmology. 1991.

Rising Incidence of Endophthalmitis

• Medicare data show increasing incidence of endophthalmitis following cataract surgery:

• Rates increased between 1999 and 2009 to 2.5 per 1000 cases (0.25%)

• Previously estimated between 0.07% and 0.2%

• Based on Medicare record review of 477,627 cases2

2 West et al. Ophthalmology. 2014.

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Potential Causes for Increased Rates of Endophthalmitis

• Evolving antibiotic resistance

• Trend towards self-sealing, clear corneal incisions

• Wound leaks3

3 Wallin et al. J. Cataract Refract Surg. 2005.

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Increasing Resistance to Fluoroquinolones Among Staphylococcal Endophthalmitis Isolates

• In vitro evaluation of the susceptibility of coagulase-negative staphylococci to fluoroquinolones

• 78 isolates from patients with clinical endophthalmitis

• Evaluated both newer (gatifloxacin, moxifloxacin) and older (ciprofloxacin, ofloxacin, levofloxacin) fluoroquinolones

• Looked at susceptibility changes from 1990 to 2008

• The percentage of resistant organisms increased over time for all fluoroquinolones tested4

4 Miller et al. Arch Ophthalmology. 2009.

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Antibiotic Resistance 2008

5Major et al. ARVO. 2007.

45% susceptible and

55% nonsusceptible

for both

gatifloxacin and

moxifloxacin5

Methicillin-resistant Staphylococcus aureus (MRSA) endophthalmitis isolates:

Role of external bacterial flora in the pathogenesis of acute postoperative endophthalmitis.1

Speaker, Milch et al1Ophthalmology. 1991 May;98(5):639-49

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Strategies to Prevent Endophthalmitis

• Sterilize the surface

• Use topical anti-infective and povidone iodine

• Use sterile technique (draping, etc)

• Promote proper wound management and closure

• Suture when necessary

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Prevention of Endophthalmitis

• Avenova allows for increased bacterial removal of the lid flora and most important may be carried out through the entire post-operative period.

• Critically important since many cases of Endophthalmitisoccur as late as 14 days and average 9.3 days post-op.6

6Moshirfar et al. Ophthalmology. 2008.

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Katherine M. Mastrota, M.S., O.D., F.A.A.O.

Center Director of Omni Eye Surgery

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Meibomian Gland Dysfunction

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Oculus Keratograph

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Anterior Blepharitis—Staphylococcal

• Bacteria on the lid margin release exotoxins causing inflammation and keratinization of the lid margin.

• Scurf, collerettes, ulceration

• Staph keratitis

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Eyelid Margin Keratinization

• Chronic inflammation of the ocular surface, such as in dry eye, activates genes responsible for differentiation, such as keratins.

• Leads to orifice plugging.

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Meibomian Gland Capping

• Capped by a dome of solidified oil.

• The underlying orifice is ulcerated.

• Early sign of MGD, with early keratinization of the lid margin.

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Hordeolum/Chalazia

Chalazia occur when pressure

from congested meibum

breaks the walls of the glands

and liberates its contents

within the lid causing a non-

infectious inflammation.

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Meibomian Gland Expression

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The Line of Marx

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LipiFlow

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Maskin Intraductal Probes

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Diagnosing Demodex

• Eyelid itching

• “Cylindrical cuffs/sleeves/dandruff” around base of eyelashes

• Abnormal lash integrity/growth

• In some cases corneal and conjunctival inflammation

• Demodex folliculorum is identified by microscopic evaluation of epilated eyelash

• Demodex brevis is generally not isolated as it is often within the meibomian gland itself.

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Cylindrical Dandruff

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Under the Surface

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Lid Hygiene

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AvenovaA Day in the Life of a Clinical Practice

Brian D. Rosenblatt, O.D.

Rosenblatt Family Eye Care Associates

Raritan, New Jersey

(908) 725-3331

Brian.rfea@verizon.net

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Avenova: A few Clinical Indications

• Surgical

• Blepharitis

• Meibomian Gland Dysfunction

• Rosacea

• Allergy Sufferers

• Contact Lens Wearers

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Blepharitis

• “Lid Margin disease”

• Inflammation of glands & follicles

• Dry Eye Syndrome (DES)

• Anterior

• Posterior

• Prevalence: 12-47%

• (Overlapping Syndromes)

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Bacterial Blepharitis(Anterior Blepharitis)

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Ocular Rosacea

• Symptoms

• >50% ocular manifestations

• Clinical Signs

• Pathophysiology

• Autoimmune dysregulation

• Cathelicidin (antimicrobial peptide)

• Kallikrein-5 (cathelicidin processing enzyme)

• Triggers

• Demodex mites

• Staphylococcus epidermidis

• Prevalence

• US: 10% general population

• Estonia: 22% 71

Ocular Rosacea(Posterior Blepharitis)

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Ocular Rosacea

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As an Aside . . .

• Allergy Sufferers . . .

• 40-50 Million Americans – 1 or more allergens

• >70% Systemic Allergies → ocular manifestations

• 81% Sneezing

• 76% Stuffy Nose

• 76% Runny Nose

• 73% Itchy eyes

• Cross Roads between Allergic & Dry Eye Diseases

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Contact Lens Wear

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US Contact Lens Market

• 37-38 Million Wearers

• $2.4 Billion Industry

• 27% Net Practice Revenue

• 16-20% Drop-Outs Annually

• Tear Film & Ocular Surface Society

• “dryness is main cause of contact lens intolerance”

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Avenova US Contact Lens Market Potential

• 37 Million wearers

• 16% Drop Outs

• 5,920,000 Patients

• ¼ of Drop Outs: 1,480,000 Patients

• 10 units Avenova/year

• 14,800,000 Units x $20(wholesale)

• $296,000,000 Annual Sales!

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Avenova in the Ophthalmology Practice

Ivan Mac, MD/MBA

Metrolina Eye Associates, PLLC

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Avenova Roles

• Dry Eye Disease

• Cataract and LASIK surgery

• Blepharitis/MGD

• Intravitreal Injections

• Oculoplastic Surgery

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Dry Eye Disease

• Most common ocular problem in U.S.

• 90% co-existent MGD/posterior blepharitis

• Synergy with Restasis®

• Avenova BID for 1st bottle, qDay maintenance

• IPL therapy and Avenova

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Cataract and LASIK Surgery

• Premium IOL/Laser Cataract Surgery

• Traditional cataract surgery

• Dropless cataract surgery

• Broad spectrum activity

• Rapid-onset

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Blepharitis/MGD

• OTC products vs. Avenova

• Baby shampoo

• Topical corticosteroids

• Improvement with Avenova

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Intravitreal Injections

• ARMD/DME/Retinal Vein Occlusions

• Usage increasing/ chronic therapy

• Risk of endophthalmitis

• Betadine vs. Avenova

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Oculoplastic Surgery

• Blepharoplasty/Ptosis repair

• Ectropion/entropion

• Pre-op and post-op Avenova

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Average Day

• 5-6 cataract evaluations

• 10-15 patients with dry eye disease

• 1 LASIK evaluation

• 10-15 patients with blepharitis

• Avenova has high unmet clinical need.

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Questions and Answers

Dr. Eric Donnenfeld

Avenova in the Market

Glenn Moro

Vice President of Sales and Marketing – Avenova

NovaBay Pharmaceuticals

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• 30 million patient population

• 24 million blepharitis and 6 million MGD dry eye*

• Called-on Ophthalmologists and Optometrists account for 80% of opportunity

• Commercial introduction April 2014 at ASCRS

• Stage 1: Sept 2014 – medical reps target top 10 U.S. markets

• Stage 2: Feb 2015 - Increase medical reps to 35

• Stage 3: 2015 – Planned growth to 50

• Distribution agreements: AmerisourceBergen, Cardinal, McKesson

• Accessible in ~90% of U.S. retail pharmacies

Commercial Strategy

* Medscape Ophthalmology-Blepharitis July 9th, 2009; The Epidemiology of dry eye DEWS Report 2010;

* U.S. Dept of Health and Human Services Survey of Eye Glasses and Eyecare 2009;

* U.S. Dept of Health Education and Welfare Office Visits to Ophthalmologists 1978; U.S. Census 2010

* A Guide for Breaking Down Blepharitis, Review of Ophthalmology, Feb 2, 2011;

* Facts About Dry Eye, NIH, National Eye Institute, August, 2009

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Current Market CoverageMedical Representatives Cover 35 Major Markets

Western:

LA-North, LA-South

San Francisco, San

Diego

Sacramento, Seattle

Phoenix, Denver, Dallas

Northeast:Boston, Wash, DCPhiladelphia, PittsburghPatterson, NJ, Cherry Hill, NJ, RichmondHartford, Providence

Southern:

Miami, Jacksonville, Tampa

West Palm, Atlanta, Columbia, SC

Raleigh-Durham, NC, Charlotte,

NC, Birmingham

Midwest:Chicago-No, Chicago-So, DetroitCleveland, Cincinnati, St LouisMemphis, Milwaukee

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KOL from Across US SupportOphthalmic Advisory Board

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Dr. Richard L. LindstromFounder and attending surgeon of Minnesota Eye Consultants and Adjunct Professor Emeritus at the University of Minnesota Department of Ophthalmology.

Dr. Edward J. HollandDirector of Cornea Services at the Cincinnati Eye Institute and Professor of Ophthalmology at the University of Cincinnati.

Dr. Terry KimProfessor of Ophthalmology at Duke University School of Medicine, and Associate Director of the Corneal and External Disease Service and Refractive Surgery Service at the Duke University Eye Center.

Dr. Francis MahDirector of Cornea and External Disease and Co-Director of Refractive Surgery, Scripps Clinic Medical Group, La Jolla, CA; Russell N. Van Gelder, M.D., PhD., University of Washington Professor and Chair of the Department of Ophthalmology.

Dr. Eric DonnenfeldPast president of Ocular Microbiology and Immunology Group and serves on the Board of Directors of American Society of Cataract and Refractive Surgery. Dr. Donnenfeld has published over 175 journal articles, and >20 book chapters and books.

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Advertising –KOL Endorsements

92Placements in Top Trade Journals

KOLs from Across US Support Optometry Advisory Board

Dr. Arthur EpsteinDirector of Dry Eye – Ocular Surface Disease Center and Director of Clinical Research at Phoenix Eye Care; heads practice’s Dry-Eye – Ocular Surface Disease Center and serves as Director of Clinical Research. Internationally recognized expert in complex contact lens management and medical complications of contact lenses, dry eye and anterior segment disease.

Dr. Katherine M. MastrotaCenter Director of Omni Eye Surgery in New York City; Contributing Editor to Contact Lens Spectrum and Optometric Physician and authored numerous articles. Named Secretary to the Ocular Surface Society of Optometry. Serves on Board of Directors of Optometric Society of the City of New York.

Dr. Brian RosenblattOwner and medical director of Rosenblatt Family Eyecare Associates, Raritan New Jersey. Extensive experience in treatment of diseases of the cornea, lids and lashes. Noted lecturer on dry eye, contact lenses and care and contact lens intolerance.

Dr. Christine SindtFounded Scleral Lens Education Society is nationally recognized expert on specialty contact lenses for children, practice specializes in treatment of anterior segment disease.

Dr. Bill TownsendServed 11 years as consultant at VA Medical Center in Amarillo, TX. Currently an adjunct professor at University of Houston, College of Optometry. Special emphasis on ocular surface disease and dry eye. Fellow of American Academy of Optometry and President of Ocular Surface Society of Optometry.

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Interactive Website Helps Locate Prescribing Physicians and Pharmacies Stocking

94

Find a Physician

Find a Pharmacy

Collateral Marketing Materials

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Closing Remarks

Dr. Ron Najafi

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Therapeutic Area

U.S. MarketSize ($M)

2014 2015 2016

1H 2H 1H 2H 1H 2H

Eye Care

Avenova

$600(1 Bottle/patient

/year)

Next Gen.Contact Lens Care System

$200

Avenova Cream / Ointment $600

Launch

Launch

Launch

Pipeline–Eye Care Products

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FDA Clearance

Neutrox™Family of Products

(FDA-cleared, Commercial)

NovaBay Sales Force Deployed Sept.

2014 U.S. Launch by PBE Apr. 2014

China Launch March 2015

Introduced inApr. 2014

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The Future of

Wound Care

Has Arrived

NeutroPhase®

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• Significant markets

• >6 million U.S. patients with diabetic, venous, pressure ulcers*

• Proprietary technology

• Patented formulation – 0.01% Pure hypochlorous acid

• No resistance expected based on novel mechanism of action

• Extensive clinical experience

• Peer-reviewed publication in medical journal WOUNDS

• Current clinical use with KOLs

• Commercial launch underway• FDA-cleared for sale in U.S. and China

• PBE in the U.S.; Pioneer Pharma in China and SE Asia

* Human Skin Wounds: A Major and Snowballing Threat to Public Health and the Economy, Wound Repair and Regeneration, Nov, 2009

NeutroPhase Value Proposition

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200,000 units ordered and initial shipments underway

China Pioneer PharmaMarch 2015 Launch in China

Covered every province in China

510 Regional Distributors

Covering 26,000Hospitals

Covering >95,000 Pharmacies

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Roy WuSVP, Business Development(Genelabs, Kissei, Syntex)

Ron Najafi, Ph.D.Chief Executive Officer

(Aldrich, Rhone Poulenc Rorer, Applied Biosystems)

Tom PaulsonChief Financial Officer

(Abbott, Quidel,. Ciba-Corning, Neurogen, Avigen)

David Stroman, Ph.D.SVP, Ophthalmology

(Alcon, Upjohn)

Russell HoonSVP, Advance Wound Care(Xylos, Tutogen, Integra)

Glenn MoroVP, Avenova Sales & Marketing

(Alcon)

Management Team

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1. Revenue growth from commercial products

• Grow US sales of Avenova

• Capitalize on large market opportunity in poorly served markets with FDA-cleared products

2. Innovation• Develop, introduce innovative eye care products in next

12-18 months

3. Monetization of non-strategic assets

• Remain committed to existing partnerships

• License / sell select assets in urology, dermatology, wound care and plastic surgery to monetize assets

Achieve near-term revenue growth

and ultimately profitability

In Summary

103

AVENOVAGoing Beyond Antibiotics