Benzinga | Aug 17, 2021 05:16AM EDT

Ra Medical To Focus On Peripheral Artery Disease With Pharos Dermatology Divestiture

* Ra Medical Systems Inc (NYSE:RMED) has sold its Pharos dermatology business to STRATA Skin Sciences Inc (NASDAQ:SSKN) for $3.7 million in cash.

* The Pharos excimer laser is an FDA-cleared treatment for psoriasis, vitiligo, atopic dermatitis, and leukoderma.

* "We believe this transaction is in the best interest of Ra Medical and our shareholders as we intend to maximize value with a strategy that continues to focus on the large and growing peripheral artery disease (PAD) market," said Will McGuire, Ra Medical Systems CEO.

* Ra Medical plans to focus its resources on DABRA catheter products and complete a clinical study to obtain an FDA atherectomy indication.

* The transaction provides immediate cash proceeds to further these initiatives and allows us to reduce future cash burn.

* Price Action: SSKN shares are up 7.47% at $1.44, while RMED stock is down 4.68% at $2.85 during the premarket session on the last check Tuesday.