Benzinga | Jan 10, 2022 04:02PM EST

STRATA Skin Sciences Announces Acquisition Of Acne Treatment Device Assets From Theravant Corporation For ~$1M Upfront Payment And Milestone-Based Payments

* Substantially broadens STRATA's opportunity for expansion potential into the estimated $5.5 billion acne care market

* Leverages STRATA's innovative marketing platform, commercial team and worldwide distributor network to drive additional revenue growth

* Creates a robust pipeline of new opportunities, targeting dermatologic conditions beyond acne, with a unique treatment approach

* Establishes STRATA's position as a global leader of clinical dermatology devices

HORSHAM, Pa., Jan. 10, 2022 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (NASDAQ:SSKN), a medical technology company dedicated to developing, commercializing and marketing innovative products for the treatment of dermatologic conditions, announced that it has entered into a definitive agreement to acquire assets related to Theravant Corporation's TheraClear System. Theravant develops and markets a novel, FDA-cleared, system for the in-office treatment of many common forms of acne. This acquisition enables STRATA's expansion into the acne treatment market.

"As we sought to expand and capitalize on our opportunities for medical device treatment of dermatologic conditions, we identified Theravant's technology as an ideal fit, providing a seamless entry into the fast-growing acne market. The acquisition of the TheraClear System provides STRATA with a safe and effective technology to complement and/or replace prescription drugs and topical creams," said Robert Moccia, President & CEO of STRATA Skin Sciences. "In the U.S. alone, there are an estimated 50 million patients with mild-to-moderate acne. Theravant's handheld device has the potential to address this market with a revolutionary approach that can be simply and successfully operated by doctors, nurses, aestheticians and assistants. We look forward to leveraging our strong commercial team to accelerate the growth potential of this exciting technology, which we will launch under the STRATA brand by mid-year."

Research shows that 20-25% of all visits to dermatologists are for acne and are often treated with prescription drugs that can be costly or are difficult to obtain and have significant side effects. The TheraClear Acne System delivers a two-part process for treating inflammatory acne, pustular acne and comedonal acne that combines a vacuum and broadband light that has been proven to clear skin rapidly for fast and visible reduction in acne and associated redness. The rapid improvement experienced by patients drives compliance and patients returning to dermatologist's offices to complete therapy.

"This agreement with Theravant represents our second acquisition in the past six months under STRATA's new leadership team. The first one being our acquisition of Ra Medical's U.S. dermatology business in August. Importantly, it reflects the continued commitment of our entire team to deliver value to our stockholders," concluded Moccia.

"We are very pleased to have reached this exciting agreement and are confident that STRATA has the full commercial capability to further develop, commercialize and market the TheraClear system," said Ashish Bhatia, MD, FAAD, member of the Board of Directors at Theravant Corporation. "Moreover, we look forward to supporting the advancement of the technology into multiple other devices that can be used to treat a range of additional indications."

Under the terms of the transaction, STRATA will acquire substantially all of the assets, owned or controlled by Theravant, relating to its acne treatment for an upfront payment of approximately $1.0 million; comprised of $500,000 in cash and $500,000 in common stock. Additionally, the agreement includes certain milestone-based payments.