Solta Medical Reaches Milestone - Analyst Blog

California-based aesthetic laser treatments provider Solta Medical (SLTM) has reached an important landmark as the company has shipped its one millionth consumable treatment tip for its coveted Thermage and Fraxel devices for skin tightening and resurfacing.

Consumable treatment tips attached to the handpiece of these devices, regulates epidermis (the outer layer of the skin) cooling and monitors treatment data during aesthetic procedures. The milestone underscores Solta's leadership in the global medical aesthetics market and growing adoption of its non-invasive skin treatment procedures.

Solta Medical develops and markets devices for aesthetic applications. Thermage (a non-invasive radio frequency procedure for tightening and contouring the skin) and Fraxel (a novel class of skin rejuvenation therapy) are its leading brands, which have revolutionized the aesthetic medical devices industry. The company derives its revenues primarily from the sale of its systems, treatment tips and other consumables.

Physicians continue to adopt the revolutionary Thermage and Fraxel devices to provide their patients effective treatments without the risks associated with surgery. To date, more than 5,300 such devices have been used to treat patients in over 100 countries.

Solta received the U.S. Food and Drug Administration's (FDA) approval in September 2010 for its new Fraxel Dual laser device for the treatment of multiple facial actinic keratosis (AKs), a pre-cancerous skin disorder caused due to exposure to the sun.

The device leverages a cutting-edge fractional laser technology which uses a novel 1927 nanometer (nm) wavelength and represents the first application of a thulium laser in the aesthetics market. Clinical trial results demonstrated impressive safety and efficacy of Fraxel Dual, establishing it as the most effective treatment for multiple facial AKs.

Solta's revenues climbed 40% year over year in third-quarter fiscal 2010 riding on the healthy growth in its treatment tips and consumables sales. Treatment tip revenues soared more than 30% in North America and roughly 50% in international markets.

The U.S. market for aesthetic procedures for treating skin is growing at a healthy pace, thanks to an aging baby boomer population, availability of a broad range of safe and effective treatments and ongoing transition from invasive to minimally-invasive or non-invasive procedures. Solta competes with Allergan Inc. (AGN), Syneron Medical, Cutera, Palomar Medical Technologies and Alma Laser in this market.

 
ALLERGAN INC (AGN): Free Stock Analysis Report
 
SOLTA MEDICAL (SLTM): Free Stock Analysis Report
 
Zacks Investment Research