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IRVINE, Calif. - InMode Ltd. (NASDAQ:INMD), a prominent provider of medical technology, has obtained a favorable ruling from the US District Court for the Central District of California in its fight against counterfeit goods. The court granted InMode’s motion for default judgment against sellers on DHGate, an e-commerce platform, issuing a permanent injunction and awarding damages for trademark infringement and other claims related to the unauthorized sale of counterfeit products. The company, which maintains a strong financial position with an impressive 80% gross margin and virtually no debt, has demonstrated consistent commitment to protecting its intellectual property. According to InvestingPro analysis, InMode’s solid balance sheet shows more cash than debt, positioning it well for continued market leadership.
The legal action underscores InMode’s commitment to protecting consumer safety and enforcing its trademark rights. The injunction effectively freezes the assets of the defendants and puts a stop to the listing and sale of counterfeit Morpheus8 devices, which utilize InMode’s proprietary radiofrequency technology. With a market capitalization of nearly $1 billion and currently trading near its 52-week low, InvestingPro analysis suggests the stock may be undervalued, presenting an interesting opportunity for investors looking at companies with strong intellectual property protection.
InMode’s CEO, Moshe Mizrahy, emphasized the company’s zero-tolerance stance on counterfeit goods and fraudulent business practices. "We are committed to public safety and will continue to protect consumers from potential harm caused by unauthorized Morpheus8 devices," Mizrahy stated.
To further safeguard patients and ensure the use of genuine products, InMode has introduced a Verified Provider Program specifically for its Morpheus8 technology. This program allows certified clinics to demonstrate their use of authentic InMode technology, aiding patients in identifying safe and authorized providers. Consumers in the United States and Canada can utilize the "Find a Provider" tool on InMode’s website to locate approved practitioners.
InMode is recognized for its innovative medical technologies, particularly its novel radiofrequency (RF) technology, which is used in a variety of medical specialties including plastic surgery, dermatology, and gynecology. The company’s efforts to combat counterfeit sales are part of its broader initiative to ensure the delivery of high-quality, trusted medical treatments to patients.
The court’s decision in favor of InMode sends a clear message to counterfeiters and reinforces the legal protections available to medical technology companies. This news is based on a press release statement from InMode Ltd. The company’s financial health score of "GREAT" on InvestingPro, along with its strong cash flow position and robust current ratio of 8.73, indicates solid operational execution alongside its legal victories. Discover more insights about InMode and access comprehensive analysis of 1,400+ stocks through InvestingPro’s detailed research reports.
In other recent news, InMode Ltd. reported preliminary first-quarter revenues of $77.2 million to $77.5 million, which fell short of consensus estimates. Despite this, the company maintained its full-year 2025 revenue guidance of $395 million to $405 million. However, analysts have expressed varying opinions on InMode’s prospects. Jefferies upgraded the stock from Hold to Buy, albeit with a reduced price target of $15, citing a cautiously optimistic long-term outlook. Conversely, BTIG downgraded the stock from Buy to Neutral, highlighting challenges in the medical aesthetics market and concerns about the company’s ability to meet its revenue guidance. Canaccord Genuity also adjusted its outlook, lowering the price target to $15 while maintaining a Hold rating, pointing to economic headwinds and a history of guidance revisions. InMode has acknowledged the potential need to revise its revenue guidance if improvements are not seen in the coming months. The company is also dealing with declining margins and increased costs due to its strategy to expand commercial teams. These developments underscore the challenges InMode faces in the current economic climate.
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