Sonoma Pharmaceuticals Sells Animal Health Rights in Asia and Europe for $2.7 million
May 21 2019 - 4:05PM
Specialty pharmaceutical company Sonoma Pharmaceuticals, Inc.
(Nasdaq: SNOA), today announced the sale of certain animal health
product rights and assets for the Asian and European markets to
Petagon, Limited, an international importer and distributor of
quality pet food and products, for $2.7 million. Petagon has been a
distributor of our Microcyn®AH products in the Chinese, Hong Kong
and other Asian markets for the past 5 years.
The sale involves certain Asian patents and trademarks and the
exclusive right to distribute animal health care products in Asia
and Europe. Petagon will continue to source animal health products
from Sonoma for a period of at least five years.
“The sale of our animal health product rights in Asia and Europe
is part of Sonoma’s strategic decision to focus on our core
business. While we believe our international animal health care
lines have upside potential, we believe the capital necessary
maintain and grow this business segment is better invested in our
core business,” commented Bubba Sandford, Sonoma’s CEO. “We intend
to focus our efforts on our businesses that will benefit from the
capital from this sale, which we believe presents the best
opportunity for the company’s continued growth and is key to our
financial success.”
“The acquisition of the Microcyn®AH assets by Petagon for the
international market was made possible due to a very strong bond of
trust and collaboration between Sonoma Pharmaceuticals and the
Petagon Group over the last 5 years. Our success in Asia with
the growth of Microcyn®AH allows us to expand into the European
Union market. The acquisition provides Petagon the
opportunity to use existing channels in Europe to introduce the
Microcyn technology and grow the Microcyn animal health line of
products in all European countries. Sonoma Pharmaceuticals
will continue to be our manufacturing partner,” said Mr. Chris Lee,
Petagon Group Managing Director.
About Sonoma Pharmaceuticals, Inc.Sonoma is a
specialty pharmaceutical company that develops and markets unique
and effective solutions for the treatment of dermatological
conditions and advanced tissue care. The company’s
products, which are sold throughout the United States and
internationally, have improved outcomes for more than five million
patients globally by reducing infections, itch, pain, scarring
and harmful inflammatory responses. The company's headquarters are
in Petaluma, California, with manufacturing operations in the
United States and Latin America. European marketing and sales
are headquartered in Roermond, Netherlands. More information can be
found at www.sonomapharma.com.
Forward-Looking StatementsExcept for historical
information herein, matters set forth in this press release
are forward-looking within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995,
including statements about the commercial and technology progress
and future financial performance of Sonoma Pharmaceuticals,
Inc. and its subsidiaries (the “Company”). These forward-looking
statements are identified by the use of words such as “preparing,”
“represent,” and “upcoming,” among others. Forward-looking
statements in this press release are subject to certain risks and
uncertainties inherent in the Company’s business that could cause
actual results to vary, including such risks
that regulatory clinical and guideline developments may
change, scientific data may not be sufficient to meet
regulatory standards or receipt of required regulatory clearances
or approvals, clinical results may not be replicated in actual
patient settings, protection offered by the
Company’s patents and patent applications may be challenged,
invalidated or circumvented by its competitors, the available
market for the Company’s products will not be as
large as expected, the Company’s products will not be able to
penetrate one or more targeted markets, revenues will not be
sufficient to meet the Company’s cash needs, fund further
development and clinical studies, as well as uncertainties relative
to varying product formulations and a multitude of diverse
regulatory and marketing requirements in different countries and
municipalities, and other risks detailed from time to time in the
Company’s filings with the Securities and Exchange Commission. The
Company disclaims any obligation to update these forward-looking
statements, except as required by law.
Sonoma Pharmaceuticals™ and Microcyn® are trademarks or
registered trademarks of Sonoma Pharmaceuticals, Inc.
Media and Investor Contact:
Sonoma Pharmaceuticals, Inc.
Investor Relations
ir@sonomapharma.com
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