STRATA Skin Sciences Acquires Theravant's Acne Treatment Device, Expects Upside Q4 Sales

STRATA Skin Sciences Acquires Theravant's Acne Treatment Device, Expects Upside Q4 Sales

STRATA Skin Sciences Inc SSKN expects Q4 FY21 sales of $8.8 million - $9.2 million, compared to $6.7 million in Q4 FY20 and the consensus of $8.19 million.

  • For FY21, it expects sales of $29.7 million - $30.1 million (compared to a consensus of $29.11 million), up from $23.1 million in FY20.
  • Cash and cash equivalents, including restricted cash, were $12.5 million as of December 31.
  • The Company placed 34 domestic XTRAC systems, resulting in net systems placed in U.S. dermatologists' offices of 890, of which 18 are comebacks from previous excimer device owners.
  • It also increased international partner XTRAC clinics to 54, from 28 in 2020 to 10 in 2019.
  • Converted 17 Pharos systems acquired from Ra Medical's U.S. dermatology business to STRATA's recurring revenue model
  • Additionally, STRATA Skin Sciences agreed to acquire Theravant Corporation's TheraClear System assets, enabling STRATA's expansion into the acne treatment market.
  • Theravant develops and markets a novel, FDA-cleared system for the in-office treatment of many common forms of acne.
  • The deal value of $1 million includes $0.5 million in cash and $0.5 million in stock. Additionally, the agreement includes certain milestone-based payments.
  • Price Action: SSKN shares closed at $1.35 on Monday.

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