Petaluma, California-based Sonoma Pharmaceuticals (NASDAQ:SNOA) shares jumped 50% on July 29th after announcing a positive development related to its Microcyn technology. In conjunction with Dubai-based consumer products maker MicroSafe Group, the company reported that the MicroSafe disinfectant and sanitizer passed material compatibility testing for Boeing and Airbus, the world’s largest commercial transport aircraft makers.
The product, which is being manufactured by Sonoma, passed both the Boeing Specification Standard BSS7434 and the British Aerospace Airbus specification AIMS09-00-002 paving the wave for its use on Boeing and Airbus commercial planes. The disinfectant and sanitizer have been deemed safe and effective to use on the interior, exterior, and materials of the aircraft.
Sonoma is a developer and producer of hypochlorous acid (HOCI) products used in a variety of applications such as wound care, eye care, nasal care, oral care, animal health care and dermatological conditions. Its products, which are sold in 53 countries, are intended to reduce infections, itch, pain, scarring, and harmful inflammatory responses in a safe and effective manner.
Sonoma CEO Amy Trombly commented, “We are excited that these tests show that use of our Microcyn technology conforms to aircraft manufacturer standards. These test results expand our potential sales channels into the airline industry.”
Increased Disinfectant and Sanitizer Use Creates Growth Opportunity
The onset of the coronavirus pandemic has brought increased consumer and commercial usage of disinfectant and sanitizer products globally. Sonoma’s partnership with MicroSafe Group Dubai has not only contributed to the safety of the world’s work and leisure environments but created a potentially lucrative growth opportunity for the company.
The MicroSafe disinfectant and sanitizer targets a 30 second kill time of bacteria and viruses on hard surfaces. In addition to the airline industry, it has applicability for many other industries on a global scale. Under the Nanocyn brand, it was recently entered into the Australian Register of Therapeutic Goods (ARTG) for use against COVID-19.
The product has been used worldwide for almost 20 years to combat the spread of infectious disease. It has received several regulatory approvals as a surface disinfectant as well as a skin and wound antiseptic.
Sonoma’s Performance Stabilized HOCI formulation is based on in-vitro and clinical studies that have shown HOCI to have strong antipruritic, antimicrobial, and anti-inflammatory properties. HOCI is a compound that is produced naturally by neutrophils in the immune system to kill microorganisms.
The announcement of a decades old product being approved for aircraft use helped call investors’ attention to the lesser known Sonoma Pharmaceuticals. Since becoming a publicly traded company in January 2007, its stock has struggled to find its way undergoing three reverse stock splits including a 1-for-9 split in June of last year.
The favorable development around the MicroSafe product may provide a much-needed catalyst for the microcap stock. Earlier this month, Sonoma reported fiscal year and fourth quarter 2020 results that included flat revenues and a 75% narrower net loss.