August 7, 2008 -- PhotoMedex, Inc. (Montgomeryville, PA; Nasdaq: PHMD) has signed a definitive purchase agreement to acquire U.K.-based Photo Therapeutics Limited. The sale is expected to close in the fourth quarter of 2008.
PhotoMedex, a developer of excimer laser and fiber optic systems and other products for dermatological applications, offers products and services across other specialty areas as well, including urology, gynecology, and orthopedics. The company's XTRAC excimer laser system was the subject of a May 2008 study that demonstrated effectiveness for treating not just mild, but difficult-to-treat severe psoriasis.
Photo Therapeutics is a privately owned developer and provider of non-laser light devices and associated products for the treatment of such dermatological conditions as acne, photodamage, skin rejuvenation, psoriasis, post-surgery wound healing and non-melanoma cancer.
Photo Therapeutics had sales of approximately $4.1 million for the six months ended June 30, 2008 and cash and equivalents of approximately $1.1 million as of June 30, 2008. The company has three primary business segments: Professional Devices, Home Use Devices and Skin Care Consumables. Photo Therapeutics has an installed base of more than 2,600 systems (approximately 65% outside the United States), including the Omnilux and Lumiere product platforms, in physician offices, spas and salons.
Jeff O'Donnell, president and CEO of PhotoMedex, said the acquisition will be a transforming event for PhotoMedex and underscore its strategic focus on dermatology. "We believe that the combined company will offer even greater value to dermatologists," he noted, allowing them to improve practice profitability.
In conjuction with its quarterly financial results reporting for the three months ended June 30, 2008 the company also announced the sale of its Surgical Services business unit.
Financial highlights of the 2008 second quarter, after adjusting prior periods for the discontinued operations of the Surgical Services business unit, include consolidated revenues of $9.4 million, up 28% versus the prior year and up 13% sequentially. The company says that for its XTRAC products, domestic revenues are up 55% versus the prior year and up 63% sequentially; recognized procedures are up 50% versus the prior year and up 45% sequentially, and domestic equipment sales up 60% versus the prior year and up 101% sequentially.
Recently, Massachusetts Blue Cross and Blue Shield issued coverage for XTRAC for the treatment of mild-to-moderate psoriasis, and the U.S. Food and Drug Administration issued 510k clearance to market the new, more powerful and faster XTRAC Velocity excimer laser system to treat psoriasis, vitiligo, atopic dermatitis and leukoderma. The company says that XTRAC Velocity delivers the highest UV power of any medical excimer laser on the market.
