Syneron Medical Ltd. (Nasdaq: ELOS) continues to reap rewards from its acquisition of US company Candela Corporation. The Yokne'am-based developer of aesthetic laser treatments yesterday announced that Candela obtained Japanese Ministry of Health, Labor and Welfare approval for the company's Vbeam long pulsed dye laser system in Japan for the treatment of vascular conditions. The Vbeam is the first and only long pulsed dye laser system approved for use in Japan.
Syneron completed the acquisition of Candela just under a year ago for $65 million in shares. Syneron made the acquisition to help minimize damage from the credit crisis, which severely affected its business in North America, and to enter new markets, such as Japan. Syneron, founded by chairman Shimon Eckhouse, has lost a tenth of value since the beginning of the year.
Syneron CEO Lou Scafuri said, "This marks a significant milestone in our global distribution as physicians and patients in Japan will now have full access to the gold standard treatments that Vbeam offers."
The importance of the Japanese approval, in addition to expanding Syneron's geographical scope, lies in the facilitation of insurance reimbursements to physicians and patients for treatments with the Vbeam for certain medical condition, which will expand patients' access to it. Given Japan's large population and prevalence of esthetic and vascular lesions, the approval result in a substantial source of future revenue for Syneron.
Syneron's share closed at $9.40 yesterday, giving a market cap of $320 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010
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