Israeli laser technology start-up Inolase Ltd. has been sold to US cosmetic device company Candela Corp. (Nasdaq: CLZR) for $16.5 million in cash plus royalties at a rate of 3-5% of company sales. Inolase's Pneumatic Skin Flattening technology (PSF) has already won US Food and Drug Administration (FDA) approval for hair removal with a high-diode laser, and it has also won CE Mark certification for use in all fields of aesthetic medicine. It was commercially launched in October 2006.
Inolase was co-founded in 2002 by Raphi and Monik Shavit, based on an invention by the company's third co-founder Dr. Michael Slatkine. Raphi Shavit was unwilling to disclose the amount that he and Monik had invested in Inolase but claimed that it was less than the amount paid in cash by Candela.
The company's technology is based on the gate theory on pain which states that the body's nerves are divided into two types, those that transmit a sensation of pressure only and those that transmit actual sensations of pain. Both types of nerve send their signals through the same "gate" in the brain. Thus, pressure signals cannot be transmitted from the same location in the body as pain signals. This therefore means when pressure is applied on a certain location, pain sensations cannot be transmitted from the same place.
Laser treatment entails pain caused by the focusing of heat energy on tissue. Inolase's PSF technology integrates with the laser beam and flattens the skin with a form of vacuum, pinning it down for a brief period while laser treatment is taking place. The flattening process also momentarily expels blood from the compressed skin area, rendering it transparent, and more suitable for treatment by laser, which is based on the difference in shades between hair and skin. Inolase's method enables the use of laser energy in skin treatment with fewer side effects.
Published by Globes [online], Israel business news - www.globes.co.il - on March 11, 2007
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