Sonoma Pharma soars after launching diaper rash product in 3,600 Walmart stores

It is the Nasdaq-listed company’s first commercial OTC product in the U.S.

Rowan Dunne

Published

14 hours ago

Sonoma Pharmaceuticals Inc (NASDAQ: SNOA) skyrocketed by over 100 per cent during pre-market hours on Thursday after revealing that it has launched a new diaper rash product. More than 42 million shares were traded during the ensuing session compared to a three-month average of only 84,000.

The company announced that its hypochlorous acid (HOCI)-based treatment cream for infants was now available in over 3,600 Walmart Inc (NYSE: WMT) (ETR: WMT) locations throughout the United States. It can also be purchased on Amazon.com Inc (NASDAQ: AMZN) (FRA: AMZ) and unspecified large grocery chains, as specified in a slim news release on the matter.

This unnamed product is the first over-the-counter item that the skin care specialist will be distributing in the U.S. It uses the same active ingredient as creams Sonoma has crafted for eczema, skin irritation, foot care and other indications.

However, Sonoma has been distributing other HOCl-based prescription products in the country for several years. These items are used for wound care, certain skin conditions and eye care applications.

“We are pleased about the increased availability of our ‘Microcyn’ technology for consumers who seek safe and effective solutions for diaper rash and other skin irritations,” said chief executive Amy Trombly.

Sonoma’s primary product production hub is set up near Guadalajara, Mexico. Having the facility here enables the company to benefit from reduced manufacturing and labour costs.

The cream manufacturer has a robust IP portfolio with multiple patents protecting its HOCI formulations. These lotions have treated millions throughout the globe.

Sonoma’s top biotech competitors include Organogenesis Holdings Inc (NASDAQ: ORGO) (FRA: 2PQ), Verrica Pharmaceuticals Inc (NASDAQ: VRCA) and Biofrontera Inc (NASDAQ: BFRI).