Ra Medical To Focus On Peripheral Artery Disease With Pharos Dermatology Divestiture

Ra Medical Systems Inc RMED has sold its Pharos dermatology business to STRATA Skin Sciences Inc SSKN for $3.7 million in cash.
The Pharos excimer laser is an FDA-cleared treatment for psoriasis, vitiligo, atopic dermatitis, and leukoderma.
"We believe this transaction is in the best interest of Ra Medical and our shareholders as we intend to maximize value with a strategy that continues to focus on the large and growing peripheral artery disease (PAD) market," said Will McGuire, Ra Medical Systems CEO.
Ra Medical plans to focus its resources on DABRA catheter products and complete a clinical study to obtain an FDA atherectomy indication.
The transaction provides immediate cash proceeds to further these initiatives and allows us to reduce future cash burn.
Price Action: SSKN shares are up 7.47% at $1.44, while RMED stock is down 4.68% at $2.85 during the premarket session on the last check Tuesday.