Raymond Myers's questions to Sonoma Pharmaceuticals (SNOA) leadership • Q3 2018
Question
Raymond Myers of The Benchmark Company LLC asked about the productivity ramp of newly hired sales reps and its implications for future growth. He also inquired about the drivers of the strong U.S. dermatology revenue per prescription, the reasons for the elevated SG&A expense in the quarter, and sought more details on the potential Brazil partnership, an upcoming new product launch, and the market impact of a psoriasis label expansion for Loyon.
Answer
CFO Robert Miller noted that the 13 newest reps are still in a high-growth phase and that future growth will be supplemented by telephonic sales. He attributed strong revenue per prescription to price increases from a low base relative to competitors. Miller confirmed the high SG&A was due to one-time expenses and would normalize. Chief Strategy and Marketing Officer Marc Umscheid stated that negotiations with a strong partner in Brazil are advanced. CEO James Schutz added that a new FDA product approval is expected in the spring and that the clinical data submitted for the Loyon psoriasis indication is "very compelling," with a potential approval within 12 months.