New O2 Derm Cream is used to reduce swelling, itching, and redness caused by certain skin infections. New O2 Derm Cream is used to treat bacterial and fungal skin infections. Fungal infection is a skin disease in which a fungus attacks the tissue and causes infection. Fungal infections may be contagious (spread from one person to another). Bacterial infection is a condition in which harmful bacteria grow in the body and cause infection. It can infect any part of the body and multiply very quickly.