Sonoma Pharmaceuticals Inc (NASDAQ: SNOA) is heading for the top in the pre-market after releasing some seriously positive FDA news. The company announced FDA clearance for one of its treatments early this morning. Of course, this led to excited investors who sent the stock screaming for the top. Today, we’ll talk about:
- The FDA approval;
- What we’re seeing from SNOA as a result;
- and what we’ll be watching for ahead.
SNOA Announces FDA Approval
As mentioned above, Sanoma Pharmaceuticals is flying in the market today after announcing FDA approval. In a press release issued early this morning, the company announced that it has received a new 510(k) clearance from the FDA for an antimicrobial post-therapy gel. The new product is designed for the management of post-non-ablative laser therapy procedures as well as post-microdermabrasion therapy. SNOA said that the approval also covers the treatment for use following superficial chemical peels and may also be used to relieve itch and pain from minor skin irritations, lacerations, abrasions and minor burns.
In a statement, Jim Schultz, CEO at SNOA, had the following to offer:
This approval is one in a series that further fortifies Sonoma’s portfolio of innovative antimicrobial dermatology products… With our continuing efforts working with the FDA to provide best-in-class products as alternatives to topical steroids and topical antibiotics, dermatologists should have increased confidence in our growing product portfolio with concern for the troubling side effects found in dated treatments.
The above statement was followed up by Dr. Michael Gold, board-certified dermatologist and cosmetic surgeon, and founder of Gold Skin Care Center, Advanced Aesthetics Medical Spa, The Laser & Rejuvenation Center, and Tennessee Clinical Research Center, all located in Nashville TN. Here’s what he had to offer about the SNOA product approval:
This antimicrobial post-treatment gel is a promising new tool for all dermatologists and aesthetic clinicians who are looking to better manage medical procedures, post-procedure itch and pain associated with procedures including laser skin resurfacing, while promoting enhanced healing and protection against secondary infections. In our clinical testing to date, we have seen dramatically improved outcomes with quicker healing times and less patient discomfort when this advanced technology is added to our procedure management protocol.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dabble in the market is that it’s important to keep a close eye on the news. After all, the news moves the market. In the case of Sonoma Pharmaceuticals, the news proved to be overwhelmingly positive. Think about it, this 501(k) approval from the FDA means that the company is now free to commercialize the product, hopefully generating strong revenue in the process. So, it’s no surprise to see that the stock is making a run for the top in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:00), SNOA is trading at $4.76 per share after a gain of $1.13 per share or 31.13% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SNOA. In particular, we’re interested in following the story surrounding the newly approved product and the company’s movements with regard to the commercialization of the product. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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