Needham & Company Maintains a 'Buy' on Solta Medical (SLTM); Acquires Liposonix from Medicis to Enter the High Growth Body Contouring Field
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Price: $2.92 --0%
Rating Summary:
2 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Solta Medical (NASDAQ: SLTM) price target of $5.00.
Needham analyst says, "Yesterday, SLTM announced the acquisition of Liposonix from Medicis (NYSE: MRX)�for an upfront payment of $15 M in cash and a milestone payment of $20 M if the Second Generation version of the product receives FDA clearance by the end of 1Q12 (the amount declines monthly thereafter until it eventually reaches $0). There is also an earn out component based on annual sales growth of the disposable component of the system. The first generation of the product was cleared by the FDA last week. SLTM has no plans to launch the first generation product, electing to await approval of the new version that management feels is a major improvement."
"We’re not changing estimates at this time because management didn’t provide details on product pricing or updated guidance, which they said they would do on the 3Q earnings call. However, we think the revenue ramp could be fairly rapid as SLTM now has an installed base of more than 7,000 systems to sell into. In the last 12 months, about 40% of sales have come from cross-selling its Thermage, Fraxel and iSolaz brands into existing accounts. Liposonix installed base is around 70 units."
For more ratings news on Solta Medical click here and for the rating history of Solta Medical click here.
Shares of Solta Medical closed at $1.50 yesterday.
Needham analyst says, "Yesterday, SLTM announced the acquisition of Liposonix from Medicis (NYSE: MRX)�for an upfront payment of $15 M in cash and a milestone payment of $20 M if the Second Generation version of the product receives FDA clearance by the end of 1Q12 (the amount declines monthly thereafter until it eventually reaches $0). There is also an earn out component based on annual sales growth of the disposable component of the system. The first generation of the product was cleared by the FDA last week. SLTM has no plans to launch the first generation product, electing to await approval of the new version that management feels is a major improvement."
"We’re not changing estimates at this time because management didn’t provide details on product pricing or updated guidance, which they said they would do on the 3Q earnings call. However, we think the revenue ramp could be fairly rapid as SLTM now has an installed base of more than 7,000 systems to sell into. In the last 12 months, about 40% of sales have come from cross-selling its Thermage, Fraxel and iSolaz brands into existing accounts. Liposonix installed base is around 70 units."
For more ratings news on Solta Medical click here and for the rating history of Solta Medical click here.
Shares of Solta Medical closed at $1.50 yesterday.
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