clydesur
9 years ago
8:00 am ET June 23, 2015 (Dow Jones) Print
MELA Sciences Acquires XTRAC and VTRAC Businesses From PhotoMedex, Inc.
Becomes a Multi-Product Medical Dermatology Business
Conference Call at 8:30am Eastern Time Today
IRVINGTON, N.Y., June 23, 2015 (GLOBE NEWSWIRE) -- MELA Sciences, Inc. (Nasdaq:MELA), today announced that it has signed and completed the purchase of the XTRAC and VTRAC Dermatology business from PhotoMedex, Inc. for $42.5 million in cash and the assumption of certain business-related liabilities. The purchase price includes all of the accounts receivable, inventory and fixed and intangible assets of the businesses. To fund the purchase price of the transaction, the Company has issued senior secured notes and convertible debentures equal to the transaction purchase price to certain investors. The XTRAC and VTRAC businesses generated $30.6 million in revenues in 2014.
Michael R. Stewart, President and CEO of MELA Sciences, stated, "This is a transformational event for MELA Sciences. As a result of this acquisition, MELA becomes a multi-product company with a single salesforce focused on meeting the needs of dermatologists for the diagnosis and treatment of serious dermatological conditions. The XTRAC laser in particular provides us with a recurring source of revenue that has been growing significantly over the past few years and is expected to generate sufficient cash flow to fund our ongoing operations beginning this year. This should enable us to continue our current commercialization efforts while growing the XTRAC and VTRAC businesses globally.
Added MELA Sciences Chairman, Jeffrey F. O'Donnell, Sr., "I am thrilled we have completed this acquisition as it transforms MELA Sciences into a sustainable commercial enterprise, providing it with a sales infrastructure, a synergistic product line and a positive-cash flow business platform on which to build a leading franchise in medical dermatology. Given Mike Stewart's previous experience running the XTRAC and VTRAC businesses at PhotoMedex, we look forward to a smooth transition with him as CEO of the combined businesses."
XTRAC is an ultraviolet light excimer laser system that has become a widely utilized treatment among dermatologists for the treatment of psoriasis, vitiligo and other skin diseases. The VTRAC Excimer Lamp system, offered internationally, provides targeted therapeutic efficacy demonstrated by excimer technology with the simplicity of design and reliability of a lamp system. In 2014, the acquired businesses generated $30.6 million in revenues, representing year-over-year growth of 41% and a gross profit of 60.1%. As of March 31, 2015, there were 640 installed XTRAC systems in the United States, up from 527 at the end of March 2014. There are approximately 7.5 million people in the U.S. and up to 125 million people worldwide suffering from psoriasis, and 1% to 2% of the world's population have vitiligo. In 2014, over 300,000 XTRAC laser treatments were performed on approximately 19,000 patients in the United States.
To finance the transaction, the Company entered into a securities purchase agreement with institutional investors in connectio
diannedawn
10 years ago
Who won in the end???
Looks like the shorts...
Not saying its RIGHT...
but lets be realistic.
I'm glad to see MELA finally moving north...
I WISH I had averaged down BEFORE the big move.
BUT I can be fairly certain (based on past experience)
that this WILL be shorted back down;
and then, AFTER the hype and commotion has dwindled away,
(read: no one here cares anymore)
I will be able to average down at a reasonable pps,
and watch MELA trade up slow and steady based on merit, not....
It works the same for all these biotechs...
they get good news and it runs up...
then the flippers bail, followed by the shorts taking it down.
BottomBounce
10 years ago
Melanoma skin cancers
"Melanoma is a cancer that begins in the melanocytes. Other names for this cancer include malignant melanoma and cutaneous melanoma. Because most melanoma cells still make melanin, melanoma tumors are usually brown or black. But some melanomas do not make melanin and can appear pink, tan, or even white.
Melanomas can occur anywhere on the skin, but they are more likely to start in certain locations. The trunk (chest and back) is the most common site in men. The legs are the most common site in women. The neck and face are other common sites.
Having darkly pigmented skin lowers your risk of melanoma at these more common sites, but anyone can develop this cancer on the palms of the hands, soles of the feet, and under the nails. Melanomas in these areas account for more than half of all melanomas in African Americans but fewer than 1 in 10 melanomas in whites.
Melanomas can also form in other parts of your body such as the eyes, mouth, genitals and anal area, but these are much less common than melanoma of the skin.
Melanoma is much less common than basal cell and squamous cell skin cancers, but it is far more dangerous. Like basal cell and squamous cell cancers, melanoma is almost always curable in its early stages. But it is much more likely than basal or squamous cell cancer to spread to other parts of the body if not caught early." http://www.cancer.org/cancer/skincancer-melanoma/detailedguide/melanoma-skin-cancer-what-is-melanoma