Solta Reports LipoSonix Approval - Analyst Blog
October 27 2011 - 7:45AM
Zacks
Aesthetic laser treatments provider
Solta Medical (SLTM) reported that Medicis
Technologies Corporation, a unit of specialty pharmaceutical
company Medicis Pharmaceutical Corporation (MRX),
has won the U.S. approval for the second-generation LIPOSONIX
system for non-invasive waist circumference reduction.
Solta announced, in September 2011,
the acquisition of Medicis Technologies Corporation in a deal worth $35
million. The acquisition, which is expected to be completed in
fourth-quarter 2011, provides Solta with Medicis’ LIPOSONIX
system which uses advanced non-invasive ultrasound energy to reduce
abdominal fat.
Under the agreement, Solta will pay
$15 million to Medicis upon the completion of the deal. It will
also pay up to $20 million contingent upon the attainment of
near-term regulatory milestones in the U.S. Moreover, Solta would
make additional future payments subject to the achievement of
certain commercial milestones. The company plans to finance the
transaction through its existing cash and credit facilities.
The LIPOSONIX system is not a
replacement for liposuction surgery but offers a non-surgical
approach to reduce waist circumference when diet and exercise are
not enough. It is an effective treatment with a proven safety
profile. LIPOSONIX is also cleared for marketing across Canada,
European Union and Japan.
The second-generation LipoSonix
system offers a treatment area which is 2.7 times larger (compared
with its predecessor) for faster treatment times and has better
ergonomics and ease of use for the physicians.
The acquisition of Medicis
Technologies will enable Solta to foray into the lucrative and
growing non-invasive fat reduction market. The company envisions
the transaction to be accretive to earnings within 12
months of deal closure.
Solta Medical develops and
markets devices for aesthetic applications and is a global
leader in the medical aesthetics market. Its leading brands for
skin tightening and skin resurfacing are Thermage (a non-invasive
radiofrequency procedure for tightening and contouring the skin)
and Fraxel (a novel class of skin rejuvenation therapy).
Solta derives its revenues
primarily from the sale of its systems, treatment tips and other
consumables. The company competes with Allergan
Inc. (AGN), Syneron Medical (ELOS),
Cutera (CUTR) and Palomar Medical
Technologies (PMTI).
ALLERGAN INC (AGN): Free Stock Analysis Report
CUTERA INC (CUTR): Free Stock Analysis Report
SYNERON MED LTD (ELOS): Free Stock Analysis Report
MEDICIS PHARM-A (MRX): Free Stock Analysis Report
PALOMAR MED TEC (PMTI): Free Stock Analysis Report
SOLTA MEDICAL (SLTM): Free Stock Analysis Report
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