HORSHAM, Pa. - STRATA Skin Sciences, Inc. (NASDAQ: SSKN), a medical technology company specializing in dermatologic treatments, has announced the results of a clinical study evaluating the TheraClear X Acne Therapy System. The study, published in the June 2024 issue of the Journal of Clinical and Aesthetic Dermatology, demonstrated the system's safety and efficacy in treating mild-to-moderate acne in adolescents and young adults.
The TheraClear X system, an FDA-cleared photopneumatic device, combines vacuum and pulsed broadband light to address acne. The vacuum extracts follicle contents while the light targets Cutibacterium acnes bacteria and reduces sebum production. This noninvasive, in-office treatment requires no anesthesia and has no downtime for patients.
Dr. Glynis Ablon, who led the 7-week open-label trial, is a board-certified dermatologist with extensive experience. The study's findings indicate a significant reduction in acne lesions and improvements in patient satisfaction and quality of life. The majority of participants reported being satisfied with the treatment, and 87% would recommend it to a friend.
The TheraClear X therapy system is designed as a stand-alone treatment, with the study showing visible improvements after just three sessions. It was well-tolerated, with no treatment-related adverse events reported. According to Dr. Ablon, the data confirms the system's effectiveness and safety, marking a notable advancement for noninvasive acne treatments.
STRATA's President and CEO, Dr. Dolev Rafaeli, expressed confidence in the study's validation of the TheraClear X system, which adds to the company's portfolio of dermatologic solutions. STRATA Skin Sciences offers a range of products for conditions like psoriasis, vitiligo, and acne, and operates a unique Partnership Program for U.S. practitioners.
The study's positive outcome suggests that TheraClear X could be a beneficial option for patients seeking alternative acne treatments. The full study is accessible through the Journal of Clinical and Aesthetic Dermatology's website.
This article is based on a press release statement from STRATA Skin Sciences, Inc.
In other recent news, STRATA Skin Sciences Inc. reported a decrease in total revenue for the first quarter of 2024, down to $6.8 million from $7.6 million in the same period last year. However, the company's CEO, Dr. Dolev Rafaeli, highlighted a narrowing decline in recurring revenues and a significant reduction in operating expenses as part of a broader turnaround strategy. This strategy includes optimizing their XTRAC and TheraClearX dermatology solutions, with plans for full deployment of the latter by early next year and an expansion of direct-to-consumer advertising by year's end.
In addition, STRATA Skin Sciences has managed to generate over 500 patient appointments through direct-to-consumer marketing at a cost of under $300 each. The company also reported a reduction in cash burn by $1.1 million and operating expenses by $1 million year-over-year. Despite a 3% decline in gross domestic recurring billings in the first quarter, the company is confident in its strategy and expects to see growth in recurring revenue by focusing on tier 1 and tier 2 accounts.
As part of its ongoing efforts, STRATA Skin Sciences has removed 32 underperforming XTRAC devices and placed 16 in new accounts. The company is also pursuing international market penetration with extended distribution agreements in Korea, China, and Japan. These are among the recent developments in the company's strategy to return to profitability.
InvestingPro Insights
Amidst the promising results of STRATA Skin Sciences' TheraClear X Acne Therapy System, the financial health and market perception of the company (NASDAQ: SSKN) offer additional insights. With a market capitalization of $10.55 million, the company operates with a notable debt burden, as highlighted by one of the InvestingPro Tips. This financial leverage is a crucial factor for investors to consider, especially when evaluating the company's ability to sustain its operations and invest in future growth.
Another InvestingPro Tip points out that STRATA Skin Sciences has been experiencing significant stock price volatility, with the stock being in oversold territory. This could indicate a potential buying opportunity for investors, assuming the company's fundamentals remain strong. Additionally, the stock has seen a considerable decline over the last week, month, and three months, with price total returns of -18.96%, -26.66%, and -42.12%, respectively. Despite these challenges, the company continues to innovate in the dermatologic space, as evidenced by the recent clinical study.
On the financial front, the company's revenue for the last twelve months as of Q1 2024 stands at $32.55 million, with a gross profit margin of 52.71%. However, revenue growth has seen a decline of -11.29%, and the company has not been profitable over the last twelve months. These metrics underscore the importance of operational efficiency and the need to closely monitor the company's performance moving forward.
For those looking to delve deeper into STRATA Skin Sciences' financials and stock performance, additional InvestingPro Tips are available, offering comprehensive analysis and expert perspectives. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a wealth of investment insights and data to inform their decisions.
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