Solta Medical Announces Definitive Agreement to Acquire Aesthera

February 23, 2010
Solta Medical, Inc. (Nasdaq: SLTM), a global leader in the medical aesthetics market, today announced it has entered into a definitive agreement to acquire privately-held Aesthera Corporation, which is based in Pleasanton, California. Under the terms of the definitive agreement, Solta will acquire Aesthera for $5.25 million in Solta common stock and cash, with potential additional base line milestones of $750,000 for a consideration of $6.0 million. Excluding acquisition and integration related charges, the transaction is expected to be accretive to Solta Medical’s earnings within twelve months.

In addition, there are $10 million of stretch milestones which would be paid to Aesthera shareholders if Aesthera achieves revenue ranging from $14 to $21 million in the twelve months beginning April 1, 2010. The proposed transaction becomes increasingly accretive to Solta Medical shareholders as Aesthera achieves the higher milestone revenue and payments. Aesthera’s unaudited revenue for the twelve months ended December 31, 2009 was approximately $8.5 million. Solta Medical expects to close the transaction prior to March 31, 2010.

Aesthera’s light-based treatment systems - the Isolaz™ and Isolaz Pro ™ platforms – are based on proprietary Photopneumatic™ technology and are the only laser or light based devices with FDA marketing clearance for the treatment of inflammatory acne, comedonal acne, pustular acne, and mild-to-moderate inflammatory acne. These conditions impact an estimated forty-to-fifty million individuals in the U.S. annually. Isolaz treatments have an immediate visible impact on acne 24 – 48 hour post first treatment and are painless. Facial treatments take as little as 10 minutes, require no anesthetics or numbing creams, and provide additional cosmetic benefits such as smoother appearing skin.

“We are very excited to broaden our portfolio of superior solutions for dermatologists and aesthetic physician with the addition of the Isolaz brand to Solta Medical. Treatment of acne with Isolaz offers physicians and their patients an effective alternative to the risks of oral drug treatments and their associated side effects,” said Stephen J. Fanning, Chairman of the Board, President, and CEO of Solta Medical. “In addition, physicians also turn to Isolaz acne treatments for patients who have experienced little to no benefit from topical and oral antibiotic regimens in treating acne.”

“The acquisition will leverage our current call point, and provides compelling opportunities to leverage our marketing resources targeting both physicians and consumers. We have one of the largest global sales and marketing organizations in the industry and an extensive international distribution network. Our combined distribution strength will provide us with the ability to place systems with new customers, as well as drive sales of treatment tips to a worldwide installed base of over 6,500 systems. Our goal is to extend the cross-selling success that we demonstrated during the past year with the Thermage and Fraxel brands to the Isolaz brand,” added Mr. Fanning.

“We are very excited about becoming part of Solta Medical,” said Alon Maor, President and CEO of Aesthera Corporation. “Over the past several years, our team has built Isolaz into one of the most recognized and well respected names in the medical community for difficult to treat acne, which affects millions of people. Patients unable to find successful treatments for their acne have found solutions from dermatologists using our technology. Now, we believe that under the Solta Medical umbrella, Isolaz can achieve its full market potential, both in the U.S. and abroad.”

Shattuck Hammond Partners, a division of Morgan Keegan & Company, Inc., served as exclusive financial advisor to Solta Medical and Gravitas Healthcare, LLC served as exclusive financial advisor to Aesthera Corporation in this transaction.

Solta Medical
877.782.2286
www.solta.com

Source: Solta

New Organics & Green Department in the Aesthetic Trends & Technologies Magazine

Aesthetic Trends & Technologies has added new content among the departments of the magazine: Organics & Green. Each issue Aesthetic Trends will report on trends, statistics and product information and developments related to the aesthetic market.

NEWS BYTES

USA
Total U.S. organic sales, including food and nonfood products,were $17.7 billion in 2006, up 21 percent from 2005. They are estimated to have reached $21.2 billion in 2007, and are projected to surpass $25 billion in 2008. U.S. sales of organic food and beverages are expected to increase an average of 18 percent each year from 2007 to 2010. Organic food and beverage sales in the US could very well climb past $35 billion or more in 2010.* With a continued steady growth rate, it is conceivable that the world’s agriculture will be fundamentally organic by year 2020.

*Reference: Organic Trade Association 2007 Manufacturer’s Survey

Japan
The Japanese are the largest per capita consumer of organic products in the world.

Europe
Organic spending should nearly double every five years based on research across seven European countries.

Aesthetic Trends & Technologies
800.277.1391
www.aesthetictrends.com

Source: ATnT

CoolTouch Acknowledges Infringement and Validity of Cynosure’s Key Laser Lipolysis Patent

Cynosure to Receive Royalties on Past and Future Sales of Lipolysis Products

WESTFORD, Mass., /PRNewswire via COMTEX/ — Cynosure, Inc. (Nasdaq: CYNO), developer of the award-winning Smartlipo(TM) LaserBodySculpting(SM) procedure for minimally invasive removal of fat, and its largest shareholder, El.En. S.p.A, today announced a settlement of their patent infringement lawsuit against CoolTouch, Inc. Cynosure and El.En. alleged that CoolTouch’s 1320 nm CoolLipo(TM) laser system infringed on El.En.’s U.S. Patent No. 6,206,873 (the 873 patent) licensed to Cynosure, which covers laser technology to remove subcutaneous fat.

Under the terms of the settlement, CoolTouch will make payments representing a 9% royalty on sales of CoolLipo made prior to the agreement and a portion of Cynosure’s legal expenses. CoolTouch also has agreed to pay a royalty rate of 10% of future net sales for any licensed product sold strictly for lipolysis, and 7.5% of future net sales for any licensed product sold for lipolysis and at least one other aesthetic procedure. As part of its agreement with Cynosure, CoolTouch has agreed to a Consent Judgment that it has infringed on the 873 patent and that the patent is valid and enforceable. CoolTouch also has granted to Cynosure and El.En. a royalty free license to any patents or patent applications owned or controlled by CoolTouch related to the treatment of fat and/or cellulite.

“This is an important victory for Cynosure,” said President and Chief Executive Officer Michael Davin. “In addition to the financial benefits of the agreement, the successful outcome validates the strength of our patent position in the emerging laser lipolysis industry. From our introduction of Smartlipo in 2006 to the subsequent enhancements we have made to the technology, we have established laser lipolysis as the gold standard for the minimally invasive removal of fat. Today, Smartlipo is the most recognized body contouring brand among U.S. consumers. The agreement with CoolTouch further enhances that brand and the technology behind our entire Smartlipo family of products.”

“Going forward, we plan to continue our strategy of enforcing our licensed intellectual property position around our laser lipolysis portfolio,” Davin concluded. “For the benefit of Cynosure and its shareholders, we intend to pursue licensing arrangements with additional laser lipolysis competitors that we believe have infringed upon the 873 patent.”

The 873 patent is a fundamental component of the Smartlipo LaserBodySculpting Workstation, a groundbreaking system designed as an alternative to traditional liposuction in patients with areas of localized fat. Cynosure received U.S. Food and Drug Administration clearance to market the Smartlipo workstation in late 2006. The product, which was launched in early 2007, uses a laser to deliver energy directly to subcutaneous fat cells, causing them to rupture. The emitted fat-melting energy also coagulates tissue, thus inducing collagen retraction and tissue tightening.

Under Cynosure’s license agreement with El.En., once Cynosure has recouped all of its legal costs incurred in the CoolTouch case, Cynosure will receive 60% of the future royalty payments from CoolTouch and El.En. will receive 40%.

About Cynosure, Inc.
Cynosure, Inc. develops and markets aesthetic treatment systems that are used by physicians and other practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and pigmented lesions, rejuvenate the skin, liquefy and remove unwanted fat through laser lipolysis and temporarily reduce the appearance of cellulite. Cynosure’s products include a broad range of laser and other light-based energy sources, including Alexandrite, pulse dye, Nd:YAG and diode lasers, as well as intense pulsed light. Cynosure was founded in 1991.

Cynosure
800.886.2966
www.cynosure.com

Source: Cynosure

Topical Botulinum Gel in the Works

A novel topical gel formulation of botulinum toxin type A now in the developmental pipeline may expand the range of skin problems dermatologists can tackle with the neurotoxin.

“This is intriguing on a number of levels. I think topical therapy really could be a very good thing,” Dr. Mark G. Rubin observed at the seminar.

The topical gel, being developed by Revance Pharmaceuticals, combines botulinum toxin type A with a proprietary carrier peptide that can transport the neurotoxin across the skin all the way down to the musculature.

“Without an injection we can give people results that are similar to what we see with Botox [onabotulinumtoxinA] or Dysport [abobotulinumtoxinA],” according to Dr. Rubin of the Lasky Skin Center in Beverly Hills, Calif., and the University of California, San Diego.

Mark G. Rubin, M.D.

If the topical gel—now in early clinical trials—were eventually to win marketing approval, how might it fit into clinical practice? Certainly some patients dislike needles so much that they would prefer to sit in a physician’s office with a gel on their skin for 20-30 minutes rather than get a 3-second injection and be on their way, but Dr. Rubin is unsure how many people fit that description.

There are, however, certain clinical situations where a topical preparation would offer unequivocal advantages—hyperhidrosis, for example. “Think how nice it would be to just rub a gel on instead of injecting somebody 25 times in the axilla,” he said.

A topical gel would also make it easier to use the neurotoxin to treat wrinkles at difficult-to-inject sites, such as the lower eyelids.

But perhaps the most interesting potential application for a topical botulinum toxin gel is in improving the quality of the skin. Physicians who inject botulinum toxin type A have described associated reductions in skin oiliness, pore size, and facial flushing problems. Mini-doses of a topical preparation might achieve similar improvements in skin quality without the muscle weakness induced by injecting neurotoxin, the dermatologist speculated.

A 77-patient, placebo-controlled, dose-ranging clinical trial of topical botulinum gel for the treatment of crow’s feet was presented last year. Participants received 1.65 ng of the neurotoxin combined with various doses of the carrier protein. Among those subjects whose neurotoxin was combined with at least 6 mcg of carrier there was an average 2-point improvement in lateral canthal lines on a 4-point scale.

“The results were fairly profound—certainly comparable to what you see with injectable Botox or Dysport,” Dr. Rubin commented.

Last year in the United States 2.8 million injections of neurotoxins were performed, and more than 20,000 physicians injected Botox. Sales of injectable neurotoxins are forecast to increase by more than 15% annually, according to the dermatologist.

Dr. Rubin disclosed that he serves as a consultant to Revance and Medicis. SDEF and this news organization are owned by Elsevier.

Source: Global Medical News Network

ATnTechnologies Webinar Series Presents…

PRACTICE MANAGEMENT
The Power of PR: Working with the Media to Grow Your Practice

Thursday, March 18, 2010 4pm Pacific / 7pm Eastern
REGISTER - Click Here

Presenter:
Wendy Lewis

If you wonder why some medical practices and certain doctors seem to receive all the media coverage, the reason is that they have someone behind the scenes making it happen. Ultimately, the goal of a public relations campaign is to generate exposure for your practice or medspa and your brand by employing a variety of media vehicles to reach your targeted consumer.

A well orchestrated public relations program allows you to create long-term relationships with key media that may include editors, writers, producers, researchers, reporters, anchors, presenters, bloggers, and their assistants, associates and colleagues. Find out how to work with the media to grow your practice and avoid the pitfalls of performing your own PR.

Aesthetic Trends & Technologies, Inc.
800.277.1391
www.AestheticTrends.com

Source: Aesthetic Trends (ATnT)

Upcoming RLI Laser Safety Training Courses

Developed and taught by many of the leading experts in laser safety, RLI laser safety training courses have been recognized as the best in the industry.

RLI also offers Online Laser Safety Courses and On-site Laser Safety Courses that can be held at your facility.

Medical/Medical Aesthetics Courses

3/19/2010
Medical Laser Safety Officer- Cincinnati, OH

4/09/2010
Medical Aesthetics Seminar - Austin, TX

6/11/2010
Medical Laser Safety Officer - Chicago, IL

7/9/2010
Medical Laser Safety Officer - Las Vegas, NV

8/6/2010
Medical Aesthetics Seminar - San Antonio, TX

For more information, contact Leah Cridlin: training@rli.com.

About Rock Laser Industries
Rockwell Laser Industries (RLI) is recognized as the industry leader in providing services and products related to lasers and laser safety. Thirty years ago, R. James Rockwell, Jr. predicted tremendous growth in the use of lasers and therefore an increased need for laser safety training and consulting. Today, RLI provides comprehensive laser safety services and products to all sectors of the laser community.

RLI provides a wide selection of Safety Products, many of which can be customized. Products range from laser protective barriers and eye protection to instructional aids and the widely used LAZAN© hazard analysis software. The RLI Training Institute offers a variety of courses covering a wide spectrum of laser and laser safety topics. The instructors include top professionals from research, industrial, and medical fields.

RLI provides Specialized Consulting services on laser and laser safety topics. Services include safety audits, CDRH and IEC product certification and customized on-site training. RLI Communications also serves as a global laser safety information resource for the entire laser safety community. This mission is carried out through the RLI website, by presenting papers at industry conferences, authoring articles in trade journals, and participating on the ANSI, IEC, and other domestic and international laser safety standards committees. Rockwell Laser Industries combines unique activities to provide a full scope of safety related services to the laser industry.

RLI’s office in Cincinnati, Ohio serves as the main corporate headquarters for the company. It provides consulting services, training, and products related primarily to the laser and regulatory areas. Cincinnati is also the home base for the RLI consulting and on-site training services as well as technical product development. Rockwell Development Corporation serves as the center for development of laser audio-visual training programs, laser safety computer programs and other associated product development.

Rockwell Laser Industries
800.94.LASER (945.2373)
www.rli.com

Sourece: RLI

Medical Aesthetics Book by RLI Consultant Patricia Owens Now Available

Milady’s Aesthetician Series, Lasers and Light Therapy, offers a unique approach into the science and technology of laser and light systems. The reader will be exposed to all aspects of this specialized field whether one is working in a medical spa, day spa, or medical clinic.

This book is designed to address areas of hair removal and facial / body rejuvenation from a beginning conceptual level into practical hands-on application. Detailed information of treatment protocols is explored starting with the initial consultation and skin care, to the selection of the appropriate cosmetic device, to the delivery of the laser/light technology.

ORDER NOW! - Click Here

Rockwell Laser Industries
800.94.LASER (945.2373)
www.rli.com

Source: RLI

Texas Legislature Passes House Bill 449 Regulating Laser Hair Removal

The Texas Legislature recently passed legislation in House Bill 449 that establishes a regulatory program for laser hair removal. The Department of State Health Services will be charged with implementing that program.

The legislation requires every laser hair removal facility to be licensed by the department. It also requires that each individual who performs laser hair removal procedures, except physicians apply for a certificate in accordance with the provisions of the Texas Radiation Control Act, Health and Safety Code, Chapter 401.

By September 1, 2010, every Laser Hair Removal (LHR) facility must be licensed and each individual must apply for a LHR certificate.

Rockwell Laser Industries
800.94.LASER (945.2737)
www.rli.com

Source: RLI

RLI Online Laser Safety Training Courses Now Available

RLI has introduced a new, updated series of SCORM compliant online Laser Safety training courses:

Laser Safety Awareness - Click Here
This three module introductory level course provides an overview of laser safety for personnel in and around the working environment with enclosed high powered laser systems as well as low powered visible lasers.

Introduction to Laser Safety for Healthcare Professionals - Click Here
This medical laser safety awareness course has been developed for those who are new to medical lasers. At the end of the course, you will understand basic laser science and be able to Identify the components of commonly used medical lasers and their delivery systems. You will also be able to identify the hazards associated with their use and what control measures are needed to ensure safe practices. Finally, you will understand how to apply national standards and guidelines to facility safety programs.

Rockwell Laser Industries
800.94.LASER (945.2737)
www.rli.com

Source: RLI

REMINDER - WEBINAR THIS AFTERNOON!

Aesthetic Trends & Technologies Presents - ATnTechnologies Practice Management Webinar Series

TOPIC: Enhancing Your Online Brand Through Integrated Social Networking

Thursday, February 18, 2010 - 4pm Pacific / 7pm Eastern REGISTER - Click Here

Does Facebook generate Facelifts? Can Twitter create brand building buzz for your medspa? Social media platforms are the hottest driving force for aesthetic practices and spas to market their products, promote their brands, and increase revenue streams from all their verticals. Learn how to use the power of socialnetworking - Facebook and Twitter - to connect with customers and bring new customers in the door. Presenter: Wendy Lewis.

Aesthetic Trends & Technologies, Inc.
800.277.1391
www.aesthetictrends.com