Cynosure Inc.CYNO recently announced the receipt of FDA approval for marketing a new Laser Delivery System (LDS) for PicoSure, the world's first aesthetic picosecond laser. The new 1064 nm Laser Delivery System expands the company's product portfolio for tattoo removal and skin revitalization.
Following the news, Cynosure shares increased almost 4% to close at $49.69 on May 24.
The new 1064 nm Laser Delivery System helps in fast removal of dark tattoo inks. Along with 532 nm and 755 nm wavelengths, the new system allows users to remove the full color spectrum of tattoo inks in a fewer number of treatments.
The new 1064 nm system will be offered as an upgrade to existing customers. Cynosure expects to start shipments of the system in the second half of 2016.
Notably, all the three wavelengths (532, 755 and 1064 nm) are compatible with Cynosure's FOCUS Lens Array, which adds to PicoSure's ability to remove tattoos as well as treat dermatologic conditions like wrinkles, acne scars and pigmented lesions.
Moreover, researchers are excited about PicoSure's ability to treat skin conditions like melasma - hyper pigmentation which is more common in women. PicoSure was profiled in 11 of 17 oral abstracts and two of the three e-posters at the recently concluded annual conference of The American Society for Laser Medicine & Surgery (ASLMS) that was held in Boston.
Meanwhile, Cynosure reported record first-quarter revenues of $94.7 million, up 26% on a year-over-year basis driven by impressive product revenue growth (up 36%). Meaningful contributions from PicoSure, MonaLisa Touch, Icon and the newly launched SculpSure drove the results.
SculpSure is the first FDA-cleared hypothermic laser for non-invasive fat reduction of the flanks and abdomen. Management believes that the growing pack usage provides a new recurring revenue stream for the company.
Moreover, Cynosure's current marketing program for SculpSure and the upcoming direct-to-consumer campaign will boost penetration that will eventually drive revenues. Additionally, the launch of the 1064 nm Laser Delivery System will boost Cynosure's top line in full-year 2016.
Zacks Rank & Key Picks
Cynosure has a Zacks Rank #3 (Hold).
Better-ranked stocks in the same space include IRadimed Corp IRMD , Masimo Corp MASI and Exactech Inc. EXAC . While IRadimed and Masimo sport a Zacks Rank #1 (Strong Buy), Exactech carries a Zacks Rank #2 (Buy).
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