SOHM Inc. (OTC:SHMN) Stock In Focus After Recent Update

Investors are almost always on the lookout for companies that are involved in innovative industries, and one of the companies that may fit the bill is SOHM Inc. (OTC:SHMN). It is involved in the cosmeceutical, nutraceutical, and pharmaceutical spaces. It manufactures and markets generic drugs, which encompass a range of ailments. On Tuesday, SOHM was in the news cycle after it announced that it had opened a new manufacturing plant in Carlsbad, California.

The company revealed that the opening of the new facility was going to help it meet the rising demand for its products. The facility would not only help SOHM take care of the orders that it received but also the orders that it would receive in the future. It would play that pivotal role at a time when the company’s main facility located in San Diego goes through renovation prior to becoming operational in its entirety. The company noted that it aimed to complete the engineering batches at the San Diego plan by the first fiscal quarter of 2024. The expansion at the facility was part of the strategic plan from SOHM to further boost its production capabilities as well as efficiency.

The new plant at Carlsbad would provide enough space for the company to manage the manufacturing of its tropical products. Additionally, as much as 2500 square feet had been allocated for the purpose of storing finished products. Initially, the facility would have a daily capacity of 500 gallons. However, by the end of the first fiscal quarter of 2024 or the beginning of the second fiscal quarter of 2024, it would also have soft gel suppositories for its capabilities. The company stated yesterday that the status of the new facility was ‘near final’ and that by December 2023, full cGMP manufacturing capacity would be completed.

The Chief Operating Officer of the company, Dr. David Aguilar, spoke about the latest developments as well. He noted that the Carlsbad facility was located at an equidistant point between San Diego and Los Angeles, two major commercial hubs. He noted that the proximity to some of the major land-based shipping routes would play an important role in providing SOHM with a competitive advantage.

On November 14, the company came into focus after it announced that its self-care business unit had decided to launch a suite of as many as 13 new SOHM Nutrients’ brand chewables directed at the worldwide vitamin gummies space. The worldwide vitamin market was valued at as much as $6.84 billion in 2022, and by 2031, it is expected to hit a valuation of $18.76 billion. That would work out to a CAGR of as much as 12.06% from 2022 through 2031. At the time, Dr. Aguilar stated that the latest launch was a demonstration of the commitment of the company towards its ‘Adds Life to Live’ portfolio of products in the preventive care niche. The company announced at the time that the newly launched products would be available on Amazon as well as on SOHM’s direct-to-order website for retail and bulk purchases.

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