Zacks_Analysts' Blog : Solta's LIPOSONIX Reaches the U.S. - Analyst Blog

Aesthetic laser treatments provider Solta Medical (SLTM) reported the arrival of its ground-breaking LIPOSONIX system in the U.S. The California-based company stated that the device is now also available in Canada. LIPOSONIX uses advanced non-invasive ultrasound energy to reduce abdominal fat.

Solta Medical obtained the rights to the LIPOSONIX system through its takeover of Medicis Technologies Corporation, a unit of specialty pharmaceutical company Medicis Pharmaceutical Corporation (MRX), under a deal worth roughly $35 million. The acquisition, which was closed in November 2011, provided the company a complementary technology and enabled it to foray into the lucrative and growing non-invasive fat reduction market.

LIPOSONIX is not a replacement for liposuction surgery but offers a non-surgical approach to reduce waist circumference when diet and exercise are not enough. It is an effective treatment with a proven safety profile.

Unlike other non-invasive fat reduction therapies, LIPOSONIX permanently ablates the fat cells found under the skin with just a single treatment procedure that takes about an hour. Studies have shown an average waist circumference reduction of roughly 2.6 cm (1 nch) following one LIPOSONIX treatment.

Solta Medical develops and markets devices for aesthetic applications and is a global leader in the medical aesthetics market. The company derives its revenues primarily from the sale of its systems, treatment tips and other consumables. Solta competes with Allergan Inc. (AGN), Syneron Medical (ELOS), Cutera (CUTR) and Palomar Medical Technologies (PMTI).

Over a half million fat reduction treatments were performed in the U.S. last year.  The non-invasive fat reduction market is forecast to grow by 42% annually through 2016, providing a compelling opportunity for Solta Medical.