Shares of Strata Skin Sciences are up more than 12 percent this morning after the company announced it will explore strategic options up to and including a sale of the company in order to enhance stockholder value.
Shares of med-tech company Strata Skin Sciences are up more than 12 percent this morning after the company announced it will explore strategic options up to and including a sale of the company in order to enhance stockholder value.
In a statement released this morning, Strata said it is in the process of hiring a financial advisor to assist it with the strategic review.
“We believe we have made significant progress in developing our products and continue to implement changes to our business with the goal of enhancing our strategic position in the medical and aesthetic dermatology market. We believe now is the appropriate time to explore strategic alternatives,” Strata Chief Executive Officer Frank McCaney said in a statement.
In its announcement, Strata said the company board of directors supports the strategic review, but has not set a timetable for any process, including a sale of the company. Although the company is interested in initiating something that will enhance stockholder value, Strata said that there is no assurance any exploration will lead to a sale of the company. While the company reviews options, Strata said the entire leadership team will continue to “work diligently to improve operations and profitability.”
In November, Strata’s third quarter financial report showed revenues of $7.5 million compared with revenues for the third quarter of 2016 of $7.8 million, the company said. Revenues for Strata’s first nine months were $23.5 million. That was slightly up in comparison to revenues for the nine months of 2016 of $23.1 million.
McCaney said there were a number of decisions the company made that attributed to the downturn of revenue, including a restructuring of the company’s sales organization and a change in advertising strategy to focus on online ads. McCaney said the new sales focus will be focused on helping dermatologists to have a greater understanding of the company’s XTRAC systems, which uses a beam of UVB light to treat psoriasis and vitiligo.
Earlier this month, the company announced that Christina Allgeier resigned as chief financial officer to “pursue other opportunities and to commence the next chapter in her career.” Allgeier is set to leave her role at the end of December.
Strata Skin Sciences is a medical technology company that is focused on the therapeutic and aesthetic dermatology market. In April, the company launched its Nordlys System, a non-ablative fractionated laser technology cleared for 24 different indications. The company forecast expected sales of $4 to $4.5 million for 2017.
Shares of Strata are trading at $1.34 as of 11:49 a.m.
