Strata Skin Sciences (NSDQ:SSKN) announced that it acquired the Pharos dermatology business from Ra Medical (NYSE:RMED).
Horsham, Pa.-based Strata can now market its full business solution to Ra Medical’s existing customer base comprised of 400 dermatology practices, offering opportunities to increase its recurring revenue base and a pathway to gain additional placements for its XTRAC excimer laser system, according to a news release.
Ra Medical’s Pharos excimer laser system holds FDA clearance to treat chronic skin diseases, including psoriasis, vitiligo, atopic dermatitis and leukoderma.
Under the acquisition, Strata will acquire Ra Medical’s dermatology business in an asset transaction with an upfront cash payment of approximately $3.7 million for certain assets and the assumption of estimated customer warranty and service agreement liabilities, among other assumed liabilities.
“As we sought opportunities to further drive our commercial growth through both organic and inorganic opportunities, Ra Medical’s Pharos dermatology business stood out as an ideal fit, as the only other significant provider of excimer laser solutions available to the U.S. market for treating chronic skin diseases,” Strata CEO Robert J. Moccia said in the release. “This transaction’s advantages include an opportunity to increase our current installed base by more than 40% as we welcome Ra Medical’s customers to our platform.”
“Strata is a great home for our dermatology partners,” added Ra Medical CEO & director Will McGuire. “Their sole focus on the dermatology market and significant investment in supporting dermatologists, as well as patients seeking treatment for chronic skin diseases, made this a logical next step for both of our businesses.”
