Zacks_Analysts' Blog : Canada OKs Solta Clear + Brilliant - Analyst Blog

Solta Medical (SLTM), a provider of aesthetic laser treatments, has secured the approval of Health Canada for marketing its Clear + Brilliant laser aesthetic treatment in the North American nation. The device was approved in the U.S. and Europe in May 2011 and is already gaining notable traction in these markets.

The novel Clear + Brilliant laser treatment is based on fractional laser technology for treating and preventing aging of the skin. The treatment is targeted at young patients seeking to control the signs of aging. It will enable physicians and skin care providers to address the unmet customer needs and expand their patient base. Clear + Brilliant is targeted for patients who are not satisfied with over the counter or spa treatments but not ready yet for a more aggressive laser skin resurfacing treatment.

California-based Solta Medical develops and markets devices for aesthetic applications and is a global leader in the medical aesthetics market. Its leading brands for skin tightening and skin resurfacing are Thermage (a non-invasive radiofrequency procedure for tightening and contouring the skin) and Fraxel (a novel class of skin rejuvenation therapy).

Solta acquired aesthetic devices maker Aesthera Corporation in March 2010. The acquisition brought the Isolaz brand of products for treating acne.

Solta derives its revenues primarily from the sale of its systems, treatment tips and other consumables. The company’s sales fell roughly 3.7% year over year to $28.95 million in second-quarter fiscal 2011.

Revenues from its treatment tips and consumables went up 10% with growth registered in every region across the globe. Moreover, new system sales of Fraxel Dual and Thermage CPT systems expanded at a double-digit clip in the quarter.

The U.S. market for aesthetic procedures to treat 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 (ELOS), Cutera (CUTR) and Palomar Medical Technologies (PMTI).