Sonoma stock soars after expanded indications for its flagship drug announced

Quotes on Sonoma Pharmaceuticals soared over 23% on Tuesday, September 17, following the announcement that the U.S. Food and Drug Administration (FDA) had expanded over-the-counter indications for its flagship product, Microcyn wound cleanser.

Details

On Tuesday, Sonoma stock gained 23.5% to $5.20 per share on the Nasdaq. It is up over 44% since the beginning of the year but still down around 73% over the last 12 months.

Before the opening bell on Tuesday, Sonoma announced that the FDA had expanded the indications for its flagship product, Microcyn. Based on stabilized hypochlorous acid, it is used for wound care, eye, oral, and nasal care, dermatological conditions, and podiatry. Per this new FDA clearance, it can now be used for OTC management of minor skin abrasions and irritations, as well as intact skin on the face and eyelids. Sonoma believes this will strengthen its position in the eye care market and expand how it can market its dermatology products.

About Sonoma

Sonoma’s portfolio includes products based on stabilized hypochlorous acid for both humans and animals, such as wound care solutions, scar gels, and eyelid cleansers, among others. Some are available only by prescription, while others can be purchased over the counter.

For the fiscal-2025 first quarter (ended June 30), Sonoma’s revenue came in flat year over year at $3.4 million. In August, the company announced a new partnership to market and distribute its wound care products across the U.S. This month, the company signed a co-marketing agreement with EMC Pharma to launch and sell an expanded prescription and OTC eye care product line, which is expected to be unveiled in October.

Analyst recommendations

According to MarketWatch, the one analyst who covers Sonoma Pharmaceuticals recommends buying the stock, with a target price of $26 per share, indicating upside of 400% versus the September 17 close.