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Aesthetic laser treatments provider Solta Medical ( SLTM - Snapshot Report ) reported that Medicis Technologies Corporation, a unit of specialty pharmaceutical company Medicis Pharmaceutical Corporation ( ) , has won the U.S. approval for the second-generation LIPOSONIX system for non-invasive waist circumference reduction.
Solta announced, in September 2011, the acquisition of Medicis Technologies Corporation in a deal worth $35 million. The acquisition, which is expected to be completed in fourth-quarter 2011, provides Solta with Medicis’ LIPOSONIX system which uses advanced non-invasive ultrasound energy to reduce abdominal fat.
Under the agreement, Solta will pay $15 million to Medicis upon the completion of the deal. It will also pay up to $20 million contingent upon the attainment of near-term regulatory milestones in the U.S. Moreover, Solta would make additional future payments subject to the achievement of certain commercial milestones. The company plans to finance the transaction through its existing cash and credit facilities.
The LIPOSONIX system 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. LIPOSONIX is also cleared for marketing across Canada, European Union and Japan.
The second-generation LipoSonix system offers a treatment area which is 2.7 times larger (compared with its predecessor) for faster treatment times and has better ergonomics and ease of use for the physicians.
The acquisition of Medicis Technologies will enable Solta to foray into the lucrative and growing non-invasive fat reduction market. The company envisions the transaction to be accretive to earnings within 12 months of deal closure.
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 derives its revenues primarily from the sale of its systems, treatment tips and other consumables. The company competes with Allergan Inc. ( AGN - Analyst Report ) , Syneron Medical ( ELOS - Snapshot Report ) , Cutera ( CUTR - Snapshot Report ) and Palomar Medical Technologies ( PMTI - Snapshot Report ) .
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