Marketer of aesthetic treatment systems, Cynosure, Inc. announced that it has received clearance from the China Food and Drug Administration (CFDA) to market the Icon Aesthetic System. It is a platform technology for multiple aesthetic indications. The approval for the system for use in the Chinese market would enable the company to provide energy-based treatments, including facial vessel and pigment clearance, wrinkle reduction, hair removal, and scar and stretch mark treatment, in a single system. Cynosure will begin selling Icon in China from the current quarter itself through its direct sales offices in Beijing and Suzhou.
CYNOSURE INC-A Price
Shares of Cynosure have been persistently treading lower over the past six months. Still, the stock is down 3.91% compared with the Zacks Medical Products industry’s loss of 5.83%. However, the company has an unfavorable estimate revision trend for the current fiscal with four estimates moving downward compared with no estimate moving in the opposite direction. The current-year estimate accordingly has slipped 8 cents over the past couple of months, pointing to woes ahead.
Cynosure’s focus on the Chinese market is evident from the fact that it was the first U.S. aesthetic laser company to establish a wholly owned subsidiary over there more than 10 years ago. The Icon approval would enable the company to grow its Asia Pacific (APAC) region business at a faster pace. The bullishness over growth in the APAC area is due to focus on strong customer relationships, an established direct sales force, and the rapid growth of medical aesthetics in China.
Cynosure develops, manufactures and markets aesthetic treatment systems. The systems aid plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures. The company also markets radiofrequency energy-sourced medical devices for precision surgical applications.
The company sells its products globally under the Cynosure, Palomar, ConBio and Ellman brand names through a direct sales force in the U.S., Canada, France, Morocco, Germany, Spain, the United Kingdom, Australia, China, Japan and Korea, and through international distributors in approximately 120 other countries.
Zacks Rank and Key Picks
Currently, Cynosure has a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the broader medical space include HMS Holdings Corp. (HMSY - Free Report) , Medidata Solutions Inc. (MDSO - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) . Notably, HMS Holdings and Medidata Solutions carry a Zacks Rank #2 (Buy) while IDEXX Laboratories sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HMS Holdings has a long-term expected growth rate of 14.26%. Notably, the company has a solid one-year return of roughly 42.5%.
Medidata Solutions has a strong one-year return of roughly 19.5%. The stock represents a long-term expected growth rate of 22.33%.
IDEXX Laboratories represents a solid one-year return of almost 68.2%. The company has a long-term expected growth rate of almost 14.96%.
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