BOULDER, CO - Sonoma Pharmaceuticals, Inc. (NASDAQ:SNOA), in collaboration with EMC (NYSE:EMC_old) Pharma, LLC, has announced a co-marketing agreement to introduce an expanded eye care product range, including a redesigned Ocucyn® Eyelid & Eyelash Cleanser. The products, leveraging the Microcyn® technology, will be showcased at the American Academy of Ophthalmology's annual meeting scheduled for October 18-21, 2024.
The partnership builds on a prior distribution agreement from 2021, which gave EMC Pharma exclusive rights to manage and distribute Sonoma's prescription dermatology and eye care products in the U.S. The new addendum extends EMC Pharma's rights to include over-the-counter sales of Ocucyn, while Sonoma will sell the prescription Acuicyn® Eyelid & Eyelash Cleanser directly to ophthalmologists.
Both Ocucyn and Acuicyn are based on hypochlorous acid (HOCl) and are designed for cleaning the eyelid and lash area. Ocucyn, available over the counter, is suitable for daily eye hygiene and can be used to alleviate itch and irritation. The prescription-strength Acuicyn is intended for the management of chronic eye conditions such as dry eye and blepharitis.
The redesigned packaging of Ocucyn features a one-piece dispense mechanism for ease of use. Consumers can order products with the new packaging for delivery in October. Ocucyn is available for purchase on the company's website and Amazon (NASDAQ:AMZN).
The co-marketing initiative aims to expand the reach of both Sonoma's and EMC Pharma's eye care products. Eric Bailey, CEO of EMC Pharma, expressed enthusiasm for the expanded partnership and the potential to attract new customers. Amy Trombly, CEO of Sonoma, also commented on the success of the partnership and the anticipated benefits of the co-marketing agreement.
Sonoma Pharmaceuticals is recognized for its development and production of HOCl-based products for various applications, including wound care and dermatology, across 55 countries. EMC Pharma specializes in the sales and distribution of prescription pharmaceuticals across multiple therapeutic areas.
This news is based on a press release statement from Sonoma Pharmaceuticals, Inc. The forward-looking statements in the press release are subject to risks and uncertainties that could affect the actual results of the company's business endeavors.
In other recent news, Sonoma Pharmaceuticals has announced a 1-for-20 reverse stock split, aiming to comply with the Nasdaq Capital Market's minimum bid price requirement. This action will reduce the number of Sonoma's outstanding common shares from around 20 million to about 1 million. Simultaneously, the company has amended its Equity Distribution Agreement with Maxim Group LLC to continue offering its common stock.
Sonoma Pharmaceuticals has also entered into distribution agreements with Medline Industries and a major global healthcare distributor to increase the availability of its wound care products. Both agreements are part of the company's recent developments in expanding its U.S. wound care business.
Further, Sonoma Pharmaceuticals has introduced its MicrocynAH® animal health line to Menards® home improvement stores nationwide and expanded its Microcyn® Negative-Pressure Wound Therapy (NPWT) Solution in the U.S. market. A recent study also highlighted the potential of Sonoma's product, Microdox®, in treating urinary tract infections in children with bladder dysfunction. These developments reflect Sonoma Pharmaceuticals' commitment to innovation and product range expansion.
InvestingPro Insights
As Sonoma Pharmaceuticals, Inc. (NASDAQ:SNOA) teams up with EMC Pharma to broaden its eye care product line, potential investors and current shareholders may be keen to understand the company's financial health and market performance. Sonoma Pharmaceuticals holds a market capitalization of approximately $3.23M, highlighting its position as a smaller player in the pharmaceutical industry. Despite the challenges that small-cap companies often face, Sonoma Pharmaceuticals has a financial structure that includes more cash than debt on its balance sheet, which is a positive sign of liquidity and financial stability.
However, it's worth noting that the company is quickly burning through its cash reserves, which could pose a risk to its operations if not managed effectively. In terms of stock performance, Sonoma Pharmaceuticals has experienced significant price volatility, which might attract investors looking for short-term trading opportunities but could be a concern for those seeking long-term stability.
From a valuation perspective, Sonoma Pharmaceuticals is trading at a low revenue valuation multiple, which could indicate that the stock is undervalued relative to its sales. This might present an opportunity for value investors, especially if the co-marketing agreement with EMC Pharma leads to increased sales and market penetration. Additionally, the company does not pay a dividend, which is common among growth-focused companies that prefer to reinvest earnings back into the business.
For investors seeking more insights, there are 11 additional InvestingPro Tips available, offering a deeper dive into Sonoma Pharmaceuticals' financial metrics and market performance. These tips can be accessed through the dedicated page for Sonoma Pharmaceuticals on InvestingPro: https://www.investing.com/pro/SNOA.
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