Sonoma Pharmaceuticals and EMC Pharma Announce an Exclusive Partnership to Expand Commercial Channels of the Microcyn®-based Rx Dermatology and Eye Care Products Nationwide

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WOODSTOCK, Ga.--(BUSINESS WIRE)-- Sonoma Pharmaceuticals, Inc. (Nasdaq: SNOA), a global healthcare leader developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound, eye, oral and nasal care, and dermatological conditions, today announced that it has entered into an agreement with EMC Pharma, LLC for the exclusive right to manage, market and distribute Sonoma’s HOCl-based prescription dermatology and eye care products in the United States for an initial term of five years, subject to extension. EMC Pharma will also have a non-exclusive agreement to manage, market and distribute certain Microcyn-based wound care products into government channels.

EMC Pharma is a national healthcare industry products and service company specializing in the development of FDA-approved prescription products, distribution of pharmaceuticals, and specialty pharmacy services. EMC Pharma, LLC offers years of experience in product commercialization, trade relations, and supply chain management and has a broad network of industry partners in pharmaceutical manufacturing, pharmaceutical wholesale and distribution.

As part of the partnership agreement, EMC will acquire all of the existing inventory and pay a royalty and transfer prices over the initial five-year term. The parties agreed on certain minimum purchase requirements to maintain exclusivity of the distribution rights.

“We are pleased to enter into a partnership with Sonoma to acquire the exclusive rights to manage, market and distribute the Microcyn-based prescription product lines,” said Eric Bailey, Chief Executive Officer of EMC Pharma. “Sonoma’s dermatology and eye care products are a direct complement to our existing line of prescription products.”

Amy Trombly, Chief Executive Officer of Sonoma added, “with this partnership we are expanding our distributor network to reach more patients and consumers nationwide. This partnership will also bring new opportunities to access government channels. We are excited to partner with a very successful company in EMC Pharma who already has an extensive distribution network and broad experience in the pharmaceutical business.”

As a result of this transaction, Sonoma reduced its sales force dedicated to direct sales of prescription dermatology products in the United States. Sonoma’s direct sales model for its dermatology products has not been profitable since its inception and management expects that partnering with EMC will allow Sonoma to reduce significant overhead while working with EMC to build a profitable model to distribute its prescription products. The partnership also expands the company’s distributor model which has built profitable sales for the company around the world.

About Sonoma Pharmaceuticals, Inc.

Sonoma Pharmaceuticals is a global healthcare leader for developing and producing stabilized hypochlorous acid (HOCl) products for a wide range of applications, including wound care, animal health care, eye care, nasal care, oral care, disinfectant use and dermatological conditions. The company’s products reduce infections, itch, pain, scarring and harmful inflammatory responses in a safe and effective manner. In-vitro and clinical studies of hypochlorous acid (HOCl) show it to have impressive antipruritic, antimicrobial, antiviral and anti-inflammatory properties. Sonoma’s stabilized HOCl immediately relieves itch and pain, kills pathogens and breaks down biofilm, does not sting or irritate skin and oxygenates the cells in the area treated assisting the body in its natural healing process. The company’s products are sold either directly or via partners in 54 countries worldwide and the company actively seeks new distribution partners. The company’s principal office is in Woodstock, Georgia, with manufacturing operations in Latin America. European marketing and sales are headquartered in Roermond, Netherlands. More information can be found at www.sonomapharma.com. For partnership opportunities, please contact businessdevelopment@sonomapharma.com.

About EMC Pharma, LLC

EMC Pharma, LLC is a specialty pharmaceutical company committed to bringing innovative, cost effective medications to its stakeholders. EMC Pharma, LLC. is a pharmaceutical manufacturing and distribution company focused on sales, marketing and distribution of prescription pharmaceuticals within a full spectrum of therapeutic areas and dosage forms. EMC Pharma leverages its global network of developers and manufacturing partners to create an expanding portfolio of pharmaceutical products commercialized for the US market.

Forward-Looking Statements

Except 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 “continue,” “promise,” and “expect,” 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 resulting from the global COVID-19 pandemic, 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. All other trademarks and service marks are the property of their respective owners.

Media and Investor Contact:
Sonoma Pharmaceuticals, Inc.
ir@sonomapharma.com

Source: Sonoma Pharmaceuticals, Inc.

Released March 31, 2021