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.