Sonoma Pharmaceuticals secures new supply agreement

Published 30/01/2025, 23:26
Sonoma Pharmaceuticals secures new supply agreement

Sonoma Pharmaceuticals, Inc. (NASDAQ:SNOA), a specialist in surgical and medical instruments with annual revenues of $13.55 million, has entered into a significant agreement with WellSpring Pharmaceutical (TADAWUL:2070) Corporation. Announced on Thursday, the Master Supply Agreement, effective January 29, 2025, will enable Sonoma to distribute its Microcyn® technology-based products to major retailers across the United States. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 3.69, indicating solid short-term financial stability.

The agreement stipulates an initial two-year term, with the potential for extension through three successive one-year renewals. This partnership marks a strategic move for Sonoma Pharmaceuticals in expanding its product reach in the U.S. retail market.

While specific financial terms of the agreement were not disclosed, the deal is seen as a key development for Sonoma Pharmaceuticals’ business operations. The full text of the agreement, integral to understanding its complete implications, has been filed with the Securities and Exchange Commission (SEC) and is available as Exhibit 10.1 in the filing.

Sonoma Pharmaceuticals, previously known as Oculus Innovative Sciences, Inc., operates out of Boulder, Colorado, and is recognized within the industry classification of surgical and medical instruments and apparatus.

The company’s forward-looking statements suggest optimistic intentions and expectations for future activities and events. However, they caution that these statements are subject to various risks and uncertainties, which could lead to different actual outcomes. Sonoma Pharmaceuticals has expressed that they do not plan to update any forward-looking statements following this report, except as required by law.

This new partnership aligns with Sonoma Pharmaceuticals’ ongoing efforts to increase market penetration and deliver innovative healthcare solutions. The information presented is based on the latest SEC filing by Sonoma Pharmaceuticals, Inc.

In other recent news, Sonoma Pharmaceuticals reported significant developments. The company completed its annual equity grant to employees, including executive officers, as part of its strategy to retain key personnel. Non-employee directors received 7,500 stock options each, while executive officers were granted Restricted Stock Units. These equity awards will fully vest in the event of a change of control, aligning with provisions in the executives’ employment agreements.

Sonoma Pharmaceuticals also terminated its Exclusive Supply and Distribution Agreement with EMC (NYSE:EMC_old) Pharma due to the latter’s failure to meet minimum purchase requirements. Consequently, the company will resume direct sales of its prescription products in the United States market.

Additionally, Sonoma Pharmaceuticals received FDA clearance for its Microdacyn® Hydrogel, a product designed for various wound care applications, and approval for its over-the-counter Microcyn technology-based solution. These approvals are expected to enhance the product’s market viability and accessibility to patients requiring wound care management.

The company also amended its Equity Distribution Agreement with Maxim Group LLC, allowing for the continued sale of its common stock. In collaboration with EMC Pharma, Sonoma Pharmaceuticals expanded its eye care product line and introduced a redesigned Ocucyn® Eyelid & Eyelash Cleanser. Finally, the company entered into significant distribution agreements with Medline Industries and a global healthcare distributor, extending the reach of its wound care products across the U.S. market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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