Petaluma biotech startup Oculus Innovative Sciences has reached a $1 million deal with a pharmaceutical group to develop and market products based on its Microcyn technology, the companies said Tuesday.

The partnership with Amneal, a $300 million New Jersey company that focuses on generic drugs, will help Oculus expand its business in the U.S., Europe and Canada, said Hoji Alimi, Oculus' chief executive officer.

"This next-generation collaboration is an important milestone for Oculus," he said.

Oculus makes and sells infection-fighting liquid and related products using Microcyn, an active oxychlorine compound. Under the agreement announced Tuesday, an Amneal company will pay $500,000 to develop a new acne drug with Microcyn for the U.S. and European markets.

Another Amneal subsidiary will pay $500,000 for a license to market Oculus' dermatitis hydrogel product in the U.S. and Canada.

Amneal also will promote Oculus' wound care products in the U.S. podiatry market.

Oculus reported $2.3 million in sales for the third quarter ended Dec. 31, compared to $1.6 million for the same period a year ago.

It reported a net loss of $2.2 million last quarter.

The startup has about 70 employees worldwide, including 35 at its Petaluma headquarters.