Background Head Quarter Promoter Holding Pattern Turnover

Transcription

1 PhotoMedex, Inc

2 INTRODUCTION Background PhotoMedex is a global skin health medical technology company, providing integrated disease management and aesthetic solutions through complementary laser and light-based devices. Company provides with products and services that address skin diseases and skin conditions which include psoriasis, vitiligo, acne, actinic keratosis (a precursor to certain types of skin cancer) and photo damage. In 2011 Company merged with Radiancy Inc, which bring PhotoMedex with a home use consumer products for hair removal, acne treatment & skin rejuvenation capital equipment to physicians, salons, and med spas for hair removal, acne treatment, skin tightening and rejuvenation, and psoriasis care Head Quarter Pennsylvania Promoter Dolev Rafaeli ( CEO) Holding Pattern Public Turnover Approx. US $ 132 Million year ended December 2011.

3 INTRODUCTION contd Company has a Global presence with specialty distributors & retail venues in 55 countries. PhotoMedex and Radiancy hold 257 issued and pending patents globally, 91 regulatory clearances to market products in the U.S. (known as 510(k) clearances).

4 KEY TECHNOLOGY PLATFORMS Thermicon Heat Transfer Technology. In this technique, a patented thermodynamic wire gently singes and burns off the hair above the skin s surface. It also conducts heat pulses into the skin to destroy the hair follicle, which enables longer lasting hair removal. This technology drives Radiancy s home use no!no! Hair Removal 8800 device, which is designed to reduce hair growth.. LHE Technology. LHE combines direct heat and a full spectrum light source to give a greater treatment advantage for psoriasis and acne care, skin tightening, skin rejuvenation, wrinkle reduction, collagen renewal, vascular and pigmented lesion treatments, and hair removal. The Mistral intelligent phototherapy medical device Use this technology. XTRAC Excimer Laser. XTRAC received an FDA clearance in 2000 and has since become a widely recognized treatment among dermatologists for psoriasis and other skin conditions for which there are no cures. The machine delivers narrow ultraviolet B (UVB) light to affected areas of skin, leading to psoriasis remission in an average of 8 to 12 treatments and of vitiligo after 48 treatments. NEOVA. This line of topical formulations is designed to prevent premature skin aging due to UV induced DNA damage. The therapy seeks to repair photo damaged skin using a novel combination of two key ingredients: DNA repair enzymes and the Company s Copper Peptide Complex. The NEOVA line includes DNA Damage Control SILC SHEER SPF 45, an award winning tinted sunscreen. The DNA repair enzymes of this sunscreen are clinically shown to reduce UV damage by 45% and increase UV protection by 300% in one hour. Light emitting Diode (LED) Technology. PhotoMedex s LED technology is used in both its Omnilux and Lumière Light Therapy systems. Omnilux is FDA cleared to treat wrinkles, acne, minor muscle pain, and pigmented lesions, and is applicable to all skin types. Lumière is designed for use in non medical applications and combines the LED light with a line of topical lotions to improve the appearance of fine lines, wrinkles, skin tone, and blemishes, giving aesthetic professionals a complete non invasive skin care solution.

5 PRODUCTS XTRAC EXCIMER LASERS NEOVA SKIN CARE no!no! product line use Thermicon Technology

6 PRODUCTS Mistral Duet & Duet Pro Kona LHE Technology Products Spatouch Elite Facial Skin Treatment Device

7 PRODUCTS Omnilux Lumière light emitting diode (LED) technology

8 XTRAC TECHNOLOGY

9 XTRAC Technology CLEAR RESULTS FOR VITILIGO + PSORIASIS.

10 VITILIGO Vitiligo is an acquired skin disorder characterized clinically by totally white spots and by the total absence of pigment producing cells in the skin, the melanocytes. In India both the sexes are affected equally and the highest rate of onset is seen during the period between 10 to 30 years. There is a high incidence of Vitiligo in India, with more than 40 million people suffering from Vitiligo. No of Vitiligo Patients in Millions India Global Close to 50% population of world with Vitiligo is in India. It is estimated that 3-4% of the total population in India has Vitiligo compared to 1-1.5% across the globe.

11 PSORIASIS Psoriasis is an immune mediated genetically determined common dermatological disorder which affects skin, nails, joints and has various systemic associations. In India Psoriasis is twice more common in males compared to females, and most of the patients are in 30s at the time of presentation. It is estimated that Million people in India has psoriasis compared to almost 200 million people across globe. No of Psoriasis Patients in Millions India Global It is estimated that 1.5-2% of the population in India has Psoriasis compared to 2.5-3% Globally.

12 XTRAC: FDA CLEARED + CLINICALLY PROVEN XTRAC, excimer laser, delivers a highly targeted, therapeutic beam of UVB light only to affected areas, sparing healthy surrounding skin. FDA Approved - Psoriasis - Vitiligo - Leukoderma - Atopic Dermatitis This much more efficient treatment regimen [XTRAC] insures higher patient compliance and results in much greater self-esteem, decreased psychological distress and improved quality of life -- Richard E. Fitzpatrick, M.D., Dermatology Associates of San Diego County + Associate Clinical Professor at UCSD and Mercy Hospital in San Diego

13 XTRAC: THE BETTER PSORIASIS CHOICE Psoriasis Clearance Rates % Patient Outcomes Noticeable improvement in the first few treatments Significant improvement in 6-10 treatments Clearance in treatments (depends on severity) Quick and easy, painless treatments Relief without messy creams Average remissions of 4-6 months, or longer Don t lose efficacy over time as is the case with topicals

14 XTRAC: SIGNIFICANT VITILIGO OUTCOMES In clinical studies of Vitiligo patients in XTRAC therapy have shown 72.2% of treated patches exhibited repigmentation after 30 treatments over 15 weeks The rate of repigmentation increased with the number of treatments up to 20 sessions The rate of cosmetically acceptable repigmentation (>50%-75%) continued to increase throughout the treatment sessions and showed steep increases after 20 treatments. The overall time of treatment necessary to clear the lesion of vitiligo is significantly shorter than that of conventional therapy, resulting in a low cumulative dose of UV radiation. In a study of 69 subjects, 71.0% of the patients rated their satisfaction of the [XTRAC] eximer laser treatment as either 75% or 100% 1 1 Treatment of vitiligo with 308-nm xenon-chloride excimer laser: Therapeutic efficacy of different initial dose according to treatment areas, Kwang-Ho Choib, MD, Jung-Hwan Parka, MD, Young-Suck Roa, MD Seoul, Korea; Department of Dermatology, Hanyang University Hospital, College of Medicine, University of Hanyanga and Chois Dermatology Clinic

15 XTRAC: SIGNIFICANT VITILGIO OUTCOMES Before Tx After 5 Tx After 15 Tx After 29 Tx After 48 Tx 6 Months After Last Tx *Courtesy of David Friedman, MD, Jerusalem, Israel

16 XTRAC: THE BETTER CHOICE Topicals Treatment Pros Cons UVB Light Booth Low cost At home treatments Quick treatment times Cover large BSA Messy Poor compliance Skin atrophy Exposure to UVB Typically treatments Inability to treat scalp Biologics Effective for severe cases Significant side effects (TB, Cancer) Requires constant health monitoring Can be expensive XTRAC Laser FDA Cleared Safe with minimal to no side effects Minimizes impact on healthy skin Treatment sessions last only a few minutes Repigmentation begins within 6-12 treatments Patient time commitment: 2 treatments per week until complete repigmentation is achieved or 60 treatments completed, whichever comes first.

17 BUSINESS MODEL PhotoMedex USA XTRAC Placed at Selected clinics Usage of XTRAC By clinics & sharing of Revenue with PhotoMedex.

18 MARKETING MATERIAL ILLUSTRATION XTRAC Patient Insert XTRAC Patient Booklet spread XTRAC Patient Envelope XTRAC In Office patient Brochure

19 BUSINESS MODEL ILLUSTRATION XTRAC can treat patients in 15 minutes or less. Treatments per hour 4 Hours per day 16 Treatments per Day 64 Treatments per Week 448 Treatments per Year 23,296 Treatment Price $40 *Revenues per year $931,840 Number of Patients 1,164 Revenues per patient $800

20 SKIN HEALTH CENTERS: MODEL P&L Key assumptions $40 Per Treatment MD keeps 40% PHMD keeps 60% for patient recruitment costs and laser use fees 20 treatments per patient MD pays one time initial franchise fee of X($K) Protected geography of 200,000 people # Locations Population within franchise territory 200,000 2,000,000 10,000,000 20,000,000 60,000,000 Psoriasis & Vitiligo Population (4%) 8,000 80, , ,000 2,400,000 Market Share 3% 3% 3% 3% 3% Patients Treated 240 2,400 12,000 24,000 72,000 Total Annual Revenues $ 192,000 $ 1,920,000 $ 9,600,000 $ 19,200,000 $ 57,600,000 MD Revenue Share $ 76,800 $ 768,000 $ 3,840,000 $ 7,680,000 $ 23,040,000 PHMD P&L PHMD Revenue Share $ 115,200 $ 1,152,000 $ 5,760,000 $ 11,520,000 $ 34,560,000 PHMD Marketing Costs (33%) $ 38,016 $ 380,160 $ 1,900,800 $ 3,801,600 $ 11,404,800 PHMD Overhead (15%) $ 17,280 $ 172,800 $ 864,000 $ 1,728,000 $ 5,184,000 Laser Maintenance ($5k per laser) $ 5,000 $ 50,000 $ 250,000 $ 500,000 $ 1,500,000 PHMD NOP $ 54,904 $ 549,040 $ 2,745,200 $ 5,490,400 $ 16,471,200 Initial Franchise Fees X 10X 50X 100X 300X