28 Oct 2014
Stock price of the aesthetic laser firm jumps 10% following news of solid revenue growth.
Cynosure, the Massachusetts company that designs and manufactures laser systems for aesthetic and surgical procedures, has reported a sharp increase in sales for the quarter ended September 30.
News of an 18 per cent hike in sales to $71.5 million sent the firm’s stock price up by around 10 per cent in early trading on the Nasdaq exchange. On the bottom line, Cynosure swung to a net income of $4.1 million – compared with a net loss of $1.3 million a year ago.
CEO Michael Davin reported a strong increase in sales in both North America and via its Asian subsidiary companies, and said that the future outlook was strong: “Demand for our flagship ‘PicoSure’ picosecond laser workstation continues to exceed our expectations," he told investors.
“Based on enthusiastic customer feedback and patient and physician satisfaction, we believe this technology is becoming the gold standard for the removal of tattoos and benign pigmented lesions. New FDA marketing clearances, combined with recent international regulatory approvals in Korea, Taiwan and Australia, demonstrate the successful execution of our strategy to drive growth for PicoSure worldwide.”
Targeting non-invasive fat removal
Other recent developments include the acquisition of New York-based Ellman International, which offers a line of aesthetic lasers, and clearance from the US Food & Drug Administration (FDA) to market the ultra-short pulsed PicoSure system for some new applications including treatment of acne scarring and fine lines and wrinkles.
Looking ahead, the company is looking to build on that with more new applications - including the emerging area of fat removal, where rapid market growth is anticipated.
“We are on schedule to launch our next flagship platform in 2015 for non-invasive fat removal, and we believe this large addressable market represents a significant growth opportunity,” said Davin.
Cynosure’s existing range of products includes a line of “Smartlipo” systems for laser-assisted lipolysis – the breakdown of lipid molecules in the body. One of those systems, the “Smartlipo TriPlex”, features three laser wavelengths including 40 W power at 1064 nm, 24 W 1320 nm and 15 W at 1440 nm.
Intended for smaller deposits of fat, the 1064 nm wavelength targets adipose tissue, while the 1320 nm beam, which is readily absorbed by water, is said to convert hemoglobin to methemoglobin.
“This conversion immediately coagulates the surrounding small blood vessels, improving the hemostatic effect,” states Cynosure in its literature. “The 1064 nm wavelength also provides tissue retraction through soft tissue coagulation in the treated area.” Combining the 1064 and 1440 nm wavelengths is said to disrupt fatty tissue more easily.
According to the market research firm Medical Insights, the market for so-called “body contouring” applications is set to grow at a compound annual rate of more than 12 per cent through 2018.
Corporate video: Picosure "treatment" of facial blemishes: