At one point in Wednesday’s trading, Sonoma Pharmaceuticals (NASDAQ:SNOA) nearly doubled but gave back a good chunk of those gains. What triggered this big surge? All Sonoma needed to send its stock spiking was one big new customer.
Sonoma Pharmaceuticals managed to land one serious new customer: the United States government. Sonoma’s Microcyn Rx line of products now have a DAPA, or a Distribution and Pricing Agreement. This opens up their use for the Defense Logistics Agency. This also gives Sonoma’s partner, EMC Pharma, the ability to offer Microcyn Rx products to its own customers in the U.S. government. Half of EMC Pharma’s customer base is U.S. government entities. That, in turn, likely means a nice shot in the profits for Sonoma’s partner firm.
The Microcyn Rx line covers a wide range of products and use cases. It includes a couple of prescription dermatology and wound care products. Further, it includes a product geared toward prescription eye care. Soon, Microcyn Rx products will be found in a range of federal properties, ranging from the Federal Bureau of Prisons to Veterans’ Affairs hospitals and even the Department of Defense.
The last five days of trading for Sonoma stock started out flat. At least, until the big news hit, and the stock spiked not once but twice before losing much of its gains. The stock retraced but remains well above levels seen even two days ago.