This Strata Skin Analyst Is Modeling For More Than 400% Upside In Stock

Strata Skin Sciences, Inc. SSKN, a nano-cap medical technology company that develops, commercializes and markets innovative products for the treatment of dermatologic conditions, has a more than 400 percent upside, according to HC Wainwright & Co's Joseph Pantginis.

Pantginis maintains a Buy rating on Strata Skin's stock with a $12 price target after the announcement of a new development on Tuesday. The company said it entered into an agreement with MedResults Network to market STRATA's products at a special price to members.

What MedResults Network Can Do

MedResults Network (MRN) consists of more than 30,000 members which includes dermatology and plastic surgery practices and medispas, the analyst commented in his report. More important, MRN has an agreement with just one vendor per product category which eliminates any competition for Strata Skin's products.

"We believe that MRN can serve as a marketing platform which could increase visibility of STRATA's products based on their anticipated presentation to the extensive network," Pantginis wrote.

Meanwhile, Strata continues to look for ways to expand the market for XTRAC by adding proprietary treatment protocols that would require fewer patient visits, the analyst said. The OTD protocol is "being developed and could result in faster resolution of the ailment, thereby increasing convenience for patients, which may boost market share."

The U.S. Food and Drug Administration commented on two possible pathways for clearance of the new OTD protocol, including conduct a clinical study to "substantiate the claims of OTD," and seek regulatory approval with no new claims.

"For option one, the clinical protocol would be based on making the claim of defining the number and intensity of treatment to clear the skin in three treatments without burning," Pantginis explained. "Currently, the company is engaging clinical, regulatory, and marketing experts on how option one could be best addressed. With regards to option two, the company may seek to leverage the proprietary approach of XTRAC through increases in patent protections and further define the unique characteristics of XTRAC therapy."

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