Cynosure’s Smartlipo Gets CE Mark; U.S. Sales to Impact Second Quarter Results

For the morbidly obese (BMI > 40), liposuction is not really an option. But for a much broader set of women – those with fat deposits in ‘problem areas’ that respond poorly to diet and exercise – liposuction is a perfect fit.

And if you’re going the lipo route, one of the best options out there is Smartlipo MPX by Cynosure. Cynosure, a developer of a broad array of laser-based aesthetic systems, received a CE Mark for Smartlipo this week.

Smartlipo simultaneously liquefies fat and tightens skin through coagulation. The minimally invasive procedure is performed under local anesthesia; incisions are so small that they don’t require suturing.

Cynosure expects to launch Smartlipo MPX through its subsidiaries in the EU beginning this quarter. The company began selling the system in the U.S. in late April – to rave reviews and prominent media coverage.

A European market presence represents the next phase of a multi-pronged strategy to expand the geographic reach of Smartlipo. Training in Europe has already commenced. The rollout will be followed by a targeted launch in the Middle East, as well as ongoing submissions for regulatory approvals in the Asia Pacific region.

In its first quarter (ended March 31st), Cynosure managed strong growth on improved gross margins. Revenues increased 41% to $36.8 million in the first quarter of 2008 from $26.1 million in the first quarter of 2007. Gross profit margin increased to 66.3% from 62.0% over the same period.

Cynosure will release Q2 results one week from today; I’m excited to see the impact of Smartlipo sales.

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