Aesthetic laser treatments provider Solta Medical (SLTM) has wrapped up its acquisition of all outstanding shares of Medicis Technologies Corporation, a unit of specialty pharmaceutical company Medicis Pharmaceutical Corporation (MRX), under a deal worth roughly $35 million.
The acquisition provides Solta with Medicis’ LIPOSONIX system, which uses advanced non-invasive ultrasound energy to reduce abdominal fat. LIPOSONIX is not a replacement for liposuction surgery but offers a non-surgical alternative to reduce waist circumference when diet and exercise are not enough. It is an effective treatment with a proven safety profile.
Under the agreement, Solta paid $15 million to Medicis at the deal closure. It will also pay up to $20 million on or before November 19, 2011, as a result of the recent U.S. approval of the second generation LIPOSONIX system for non-invasive waist circumference reduction. The device was also recently cleared in Europe. Solta would make additional future payments to Medicis subject to the achievement of certain commercial milestones.
The acquisition of Medicis Technologies provides Solta a complementary technology and enables it to foray into the lucrative and growing non-invasive fat reduction market. The company plans for a global launch of the LipoSonix systems in first-quarter 2012.
California-based 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’s sales climbed roughly 10% year over year to $27.4 million in third-quarter fiscal 2011.
Product sales soared 14% with strong growth registered across North America, Asia and Europe. Revenues from its treatment tips and consumables went up 11%. The company expects modest contribution from the LipoSonix systems in the fourth quarter as it ramps up production of the second generation system.
MEDICIS PHARM-A (MRX): Free Stock Analysis Report
SOLTA MEDICAL (SLTM): Free Stock Analysis Report
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