PETALUMA, Calif., May 21, 2019 (GLOBE NEWSWIRE) -- 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 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 “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.