EMERYVILLE, Calif.—NovaBay Pharmaceuticals (NYSE American: NBY), which markets Avenova lid and lash cleaner in the U.S., reported net sales of $4.1 million for the third quarter of 2017, which ended Sept. 30, 2017, up 19 percent from the third quarter of 2016. Gross margin on net sales improved to 87 percent versus year ago, the company said. Gross margin on Avenova sales was 92 percent for the third quarter of 2017 compared with 88 percent for the prior-year period.

Operating loss for the third quarter of 2017 was $2.2 million, up slightly from $2.1 million for the third quarter of 2016. The net loss for the third quarter of 2017 was $2.4 million, compared with a net loss for the third quarter of 2016 of $3.7 million.

“We enjoyed continued success with our focus on increasing Avenova sales through the high-margin retail pharmacy channel during the third quarter, with prescription sales increasing 67 percent over the prior year and representing more than 90 percent of total Avenova sales. Gross margin on Avenova sales reached a record 92 percent for the quarter, exceeding our 2017 guidance,” said Mark M. Sieczkarek, NovaBay’s president and CEO.

Net sales for the nine months ended Sept. 30, 2017 were $11.9 million, up 52 percent from $7.8 million for the nine months ended Sept. 30, 2016. Gross margin on net sales improved to 85 percent for the nine-month period of 2017 from 79 percent for the nine-month period in 2016. Gross margin on Avenova sales improved to 90 percent for the first nine months of 2017 from 85 percent for the first nine months of 2016.

Operating loss for the first nine months of 2017 was $7.7 million, a 14 percent improvement from $9.0 million for the comparable period in 2016. The net loss for the nine months ended Sept. 30, 2017 was $8.2 million, compared with a net loss for the nine months ended Sept. 30, 2016 of $11.5 million.

NovaBay is revising guidance for 2017 net sales to be between $17.5 million and $18.5 million, a 47 percent to 55 percent increase over 2016. This compares with previous guidance for 2017 net sales to be $19 million. The company affirmed its guidance for 2017 gross profit margin on Avenova sales to be in the high 80 percent range.