Sonoma Pharmaceuticals Terminates Exclusive Supply and Distribution Agreement with EMC Pharma, LLC

Sonoma Pharmaceuticals, Inc. (NASDAQ:SNOA) recently announced the termination of its Exclusive Supply and Distribution Agreement with EMC Pharma, LLC (“EMC”) following EMC’s failure to meet minimum product purchase requirements. The agreement, which was entered into on March 26, 2021, granted EMC the exclusive rights to sell and distribute Sonoma’s prescription dermatological and eye care products based on its Microcyn® technology in the United States.

Under the terms of the agreement, EMC was obligated to purchase specific minimum product quantities and pay quarterly royalties to maintain its exclusive rights. Despite a 30-day cure period provided to EMC, they did not meet the minimum purchase requirements, leading Sonoma Pharmaceuticals to exercise its right to terminate the agreement, effective November 21, 2024. No penalties were incurred by Sonoma Pharmaceuticals in connection with the termination.

Following the termination, Sonoma Pharmaceuticals will resume the direct selling of its prescription dermatological and eye care products in the United States. This includes products such as Acuicyn®, Celacyn®, Epicyn®, Lasercyn®, and Levicyn®.

The company highlighted that except for historical information within the report, the matters discussed are forward-looking statements protected by the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements discuss aspects such as commercial and technology progress and future financial performance. Risks and uncertainties exist within the company’s business that could potentially impact actual results, including changes in regulatory clinical and guideline developments, challenges to patents, market penetration issues, and more.

Sonoma Pharmaceuticals emphasized that its forward-looking statements utilize words like “will,” “develop,” “project,” and “expand.” The company underlined its commitment to update these forward-looking statements as required by law.

This development marks a strategic shift in Sonoma Pharmaceuticals’ distribution strategy, allowing the company to take direct control of its product sales in the United States after the termination of the exclusive agreement with EMC Pharma, LLC.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Sonoma Pharmaceuticals’s 8K filing here.

About Sonoma Pharmaceuticals

Sonoma Pharmaceuticals, Inc, develops and produces stabilized hypochlorous acid (HOCl) products for wound care, animal health care, eye care, oral care, and dermatological conditions in the United States, Latin America, Europe, Asia, and internationally. The company offers Regenacyn, a prescription scar gel; Pediacyn, a pediatric dermatology and wound care product for over-the-counter (OTC) use; Epicyn, an Antimicrobial Facial Cleanser; Levicyn, an HOCl based prescription and OTC product to use and relieve skin irritations, lacerations, abrasions, and burns; Celacyn, a scar management gel; and SebuDerm to manage and relieve the burning, itching, erythema, scaling, and pain associated with seborrhea and seborrheic dermatitis.