MELA Sciences purchases laser, light systems from PhotoMedex for dermatological use

MELA Sciences has acquired the XTRAC and VTRAC dermatology businesses from PhotoMedex for $42.5 million in cash and assumption of certain business-related liabilities, according to a press release.

Dermatologists use the XTRAC ultraviolet light excimer laser system for treating psoriasis, vitiligo and other skin diseases. The VTRAC Excimer Lamp System is offered internationally and “provides targeted therapeutic efficacy demonstrated by excimer technology with simplicity of design and reliability of lamp system,” the release stated.

“As a result of this acquisition, MELA becomes a multiproduct company with a single salesforce focused on meeting the needs of dermatologists for the diagnosis and treatment of serious dermatological conditions,” Michael R. Stewart, president and CEO of MELA Sciences, said in the release. “The XTRAC laser in particular provides us with a recurring source of revenue that has been growing significantly over the past few years and is expected to generate sufficient cash flow to fund our ongoing operations beginning this year.”

XTRAC and VTRAC generated $30.6 million in revenues in2014, representing a year-over-year growth of 41% and gross profit of 60.1%, according to the release.

MELA Sciences entered into a securities purchase agreement with institutional investors to finance the acquisition, the release stated.

The FDA has approved MELA Sciences’ premarket approval application for MelaFind, its flagship product, which is intended to provide dermatologists with software-driven image analysis of clinically atypical pigmented skin lesions, which could aid in the decision whether a biopsy is needed, according to the MELA Sciences’ website.

Reference: melasciences.com