ELOS Syneron Medical Ltd. - Ordinary Shares

Aesthetic products company Syneron Medical (ELOS) has commenced the launch of its new skin remodeling procedure. The treatment procedure dubbed “evolastin” is the first energy-based dermal remodeling procedure which delivers controlled radio frequency energy directly to the deep dermal layer to stimulate its natural production of collagen, elastin and hyaluronic acid in one treatment.

Collagen is a naturally occurring protein which keeps skin healthy while Elastin (a complimentary protein to collagen) helps to maintain skin flexibility. Hyaluronic acid moisturizes skin and reduces wrinkles.

Unlike the conventional energy-based therapy procedures which reach the deep layer of the skin (or dermis) through surface, evolastin places the entire energy directly at the base of the dermis using insulated microneedles, thereby creating a unique wound healing response. 

The procedure is generally performed under local anesthetic and takes roughly an hour, enabling patients to go home safely following treatment and return to normal activities within a day. Results from a recently published study by leading dermatologists demonstrated the unique benefits of evolastin for patients looking for an alternative to address the loss of tautness and elasticity of skin most common with age.

Syneron offers a comprehensive product portfolio and a global distribution setup. Its knowledge allows medical practitioners to provide sophisticated solutions for a wide range such as wrinkle reduction, hair removal and body contouring. The company faces some competition from Cutera (CUTR) among others.

Syneron’s product line-up includes items for skincare for both the home-use and professional segments. The company markets and supports its products in about 86 nations.

Syneron’s revenues for third-quarter fiscal 2011 surged 28% year over year to $57 million, fueled by robust sales from its Emerging Business Units (“EBU”) segment. Revenues from the EBU unit increased nearly six-fold year over year in the quarter. Sales from its core Aesthetic Devices division climbed 19%.

However, the company’s losses widened to $40.1 million (or $1.14 a share) in the quarter from $5.2 million (or 15 cents a share) a year ago, hurt by costs associated with legal settlement with Palomar Medical (PMTI). Syneron is scheduled to report its fourth quarter results on February 9.

 
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