Chinese company Fosun Pharma, which in 2013 bought Israeli company Alma Lasers for $240 million, is also interested in acquiring Alma Lasers' competitor in aesthetic medicine, Lumenis Ltd. (Nasdaq: LMNS). Fosun's interest has not yet reached the stage of negotiations, but has so far taken the form of very preliminary approaches to some of Lumenis's shareholders.
Since the matter has now become public knowledge, Fosun is liable to withdraw, since the report affects the share price, and also the trust between the parties in any negotiations.
Lumenis is traded on Nasdaq at a market cap of $380 million. The company is run by Tzipi Ozer-Armon, formerly a senior manager at Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA). It develops and sells products for aesthetic treatments and surgery based on lasers and other forms of light energy, mainly in urology and ophthalmology. Lumenis is considered a well-run company and it has a broad product offering. Both the management and the many products sold all over the world could complement Alma Lasers.
Lumenis's third quarter 2014 revenue was $74.2 million, up 9.4%, and its GAAP-based profit totaled $5.5 million, up 61%. On a non-GAAP basis, the company's profit grew by 4.2% to $6 million, above analysts' estimates.
Lumenis's full year guidance is for revenue of $285-287 million, up 7-8%, and a non-GAAP profit of $18.1-19.6 million, up 22-32%.
Lumenis relisted on Nasdaq in early 2014, after being delisted in 2006 following a deterioration in its position. On returning to the market, it raised $75 million. Since then its share price has declined, along with most biomed stocks floated at that time, even though the company's performance has been relatively good.
Published by Globes [online], Israel business news - www.globes-online.com - on February 17, 2015
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