Laura Engel's questions to Sonoma Pharmaceuticals (SNOA) leadership • Q1 2019
Question
Laura Engel from Stonegate Capital Partners asked about the impact of the ongoing Invekra deal on margins, margin expectations for the rest of the fiscal year, and the long-term potential and associated costs of the new mail-order program.
Answer
CEO James Schutz explained that while Latin America margins are in the mid-high teens, overall margins are expected to rise to the high 60% to low 70% range as the high-margin dermatology business grows. He and CFO Robert Miller projected the mail-order channel could account for 60% of U.S. prescriptions by year-end, which would narrow the gross-to-net revenue gap by reducing rebate costs and leveraging lower service fees compared to traditional wholesalers.