Aesthetic surgical devices maker Syneron Medical Ltd. (Nasdaq: ELOS) is expanding its collaboration with US clinics chain American Laser Centers. Exactly 11 months after Syneron announced that it would supply the chain with its VelaSmooth and Aurora products, it has received has received an order from the company worth an initial $6 million.
Syneron will supply American Laser Centers with devices from its eLine product line, considered one of the company’s growth engines. Syneron currently has three products in this line: eLight is a treatment for acne, superficial benign vascular and pigmented lesions: eLaser removes hair and treats vascular veins; and eMax is a work station for the company’s electro-optical synergy (ELOS) technology.
Under the present contract, Syneron will deliver its eLaser and eLight products to 120 American Laser Centers’ clinics across the US. Syneron’s statement said, “The new equipment was designed by Syneron adhering to the specifications of American Laser Centers and according to protocols which American Laser Centers have developed for their clients during four years of experience with Syneron's elos-based systems on more than 100,000 patients.
“The equipment will be produced by Syneron under American Laser Centers' label. The new eLight Systems (branded under the name AmeriLight) and eLaser Systems (branded under the name AmeriLase) will replace all skin rejuvenation and hair removal equipment currently being used in American Laser Centers' clinics.”
American Laser Centers president Rich Morgan said, "After thorough assessment, we selected Syneron's eLight and eLaser platforms based on clinical trials across several competing devices. Our decision was based on the very high efficacy rates, consistent results, safety profile, and unmatched customer support of the Syneron equipment.”
Syneron CEO David Schlachet said, “In addition to the $6 million agreement, which we expect to fulfill completely by the end of 2006, American Laser Centers has also issued a 'blanket order' for 2007 based upon their growth projections. These agreements are the beginning of a multi-year commitment expected to create significant additional business in 2007 and beyond."
Syneron is currently traded at a market cap of $580 million. The share corrected upwards 15% last week, after falling 33% since the beginning of the year.
Published by Globes [online], Israel business news - www.globes.co.il - on August 15, 2006
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