UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): September 14, 2020
STRATA SKIN SCIENCES, INC.
(Exact Name of Registrant Specified in Charter)
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Delaware
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000-51481
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13-3986004
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(State or Other
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(Commission File Number)
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(I.R.S. Employer
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Jurisdiction of Incorporation)
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Identification No.)
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5 Walnut Grove Drive, Suite 140, Horsham, Pennsylvania
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19044
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(Address of Principal Executive Offices)
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(Zip Code)
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Registrant's telephone number, including area code: 215-619-3200
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
Symbol(s) |
Name of each exchange on which registered
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Common Stock, $0.001 par value per share
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SSKN
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The NASDAQ Stock Market LLC
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934
(§240.12b-2 of this chapter).
Emerging growth company. ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to
Section 13(a) of the Exchange Act. ☐
On September 14, 2020 STRATA Skin Sciences, Inc. (“STRATA”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing innovative products for the
treatment of dermatologic conditions, today announced the signing of a direct distribution contract with JMEC Co., Ltd for a combination of direct capital sales and direct recurring revenue sales in Japan.
The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be deemed subject to the requirements of amended Item 10 of Regulation S-K, nor shall it be deemed incorporated by reference into any filing of the
Company under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing. The furnishing of this information hereby shall not be deemed
an admission as to the materiality of any such information.
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives,
expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to generate the growth in its core business, develop and grow an
international recurring business model, the Company’s ability to develop social media marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and
are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory, adverse market
conditions or supply chain interruptions resulting from the corona virus and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the
Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all these forward-looking statements may prove to be incorrect or unreliable. The statements in this press release are made as of the date of this press release, even
if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. The
Company urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Strata Skin Sciences Press Release Dated September 14, 2020
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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STRATA SKIN SCIENCES, INC.
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Date: September 14, 2020
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By:
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/s/ Matthew C. Hill
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Matthew C. Hill
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Chief Financial Officer
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EXHIBIT 99.1
STRATA Skin Sciences Announces New Recurring Revenue Direct Distribution Contract
with JMEC Co., Ltd. in Japan
Company expanding global presence and introducing recurring business model in Japan
Horsham, PA, September 14, 2020 — (NASDAQ: SSKN)
STRATA Skin Sciences, Inc. (“STRATA”), a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing
and marketing innovative products for the treatment of dermatologic conditions, today announced the signing of a new direct distribution contract with JMEC Co., Ltd. which now provides for a combination of direct recurring revenue from placements
and direct capital sales in Japan.
Contract Highlights:
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Strengthens the STRATA XTRAC® and VTRAC® brand value proposition in Japan to expand the installed base of over 300 devices in-country
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Takes advantage of STRATA’s strong balance sheet to support the unique recurring revenue business model, now in Japan
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Leverages the over 15-year relationship with JMEC, a preeminent medical device distributor active in Japan since 1995, distributing and
providing support for STRATA Excimer devices since 2005
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The treatment by 308nm Excimer is covered by Japan’s national health insurance with reimbursement rates of $33 per procedure
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Provides a strategy to target the over 12,000 dermatologists in Japan with an enhanced and unique business proposition never before seen in the
Japanese clinical dermatology market
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STRATA expects to see the impact of the recurring revenue business model in Japan as early as the end of 2020
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Hiroyuki Nishimura, President of JMEC, stated, “We are extremely
proud of our long standing relationship with XTRAC and STRATA, having represented the XTRAC and VTRAC product lines in Japan for over 15 years, and are excited over entering into this new phase of our partnership where we can bring the recurring
revenue model to the Japanese market and achieve a win-win-win relationship for our physicians, STRATA and JMEC.”
“We are very pleased to continue to expand globally by bringing our unique business model to Japan with our strategic partner JMEC Co., Ltd. This is the
second country into which we have brought our unique U.S. recurring revenue based model and it represents a tremendous opportunity as we leverage our strong balance sheet with JMEC’s in-country distribution network,” said Dr. Dolev Rafaeli,
President and Chief Executive Officer of STRATA. “We look forward to driving market share gains as well as seeing our proven business growth engine validated in a new market.”
About JMEC
JMEC Co., Ltd. is one of Japan’s leading distributors of medical devices in dermatology, aesthetics, and other medical markets. JMEC Co., Ltd. has been
a distributor of the XTRAC excimer laser and VTRAC excimer lamp in partnership with STRATA Skin Sciences (and its predecessor) for over 15years. The JMEC platform, in combination with the know how generated by STRATA in the U.S., will enable an
efficient deployment of the business model into existing and new dermatology clinics.
The Japanese dermatology market comprises over 12,000 physicians. XTRAC and VTRAC have been sold and are used by over 300 hospitals and private practice
clinics.
Japan’s vitiligo and psoriasis patient population is approximately 0.7 million. The treatment by 308nm Excimer is covered by the
national health insurance with reimbursement rates of $33 per procedure.
About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company in Dermatology and Plastic Surgery dedicated to developing, commercializing and marketing
innovative products for the treatment of dermatologic conditions. Its products include the XTRAC excimer laser and VTRAC lamp systems utilized in the treatment of psoriasis, vitiligo and various other skin conditions.
The Company’s proprietary XTRAC® excimer laser delivers a highly targeted therapeutic beam of UVB light to treat psoriasis, vitiligo, eczema, atopic
dermatitis and leukoderma, diseases, which impact over 35 million patients in the United States alone. The technology is covered by multiple patents, including exclusive rights for patents for the delivery of treatments to vitiligo patients.
STRATA’s unique business model leverages targeted Direct to Consumer (DTC) advertising to generate awareness and utilizes its in-house call center
and insurance advocacy teams to increase volume for the Company’s partner dermatology clinics.
The XTRAC business has used this proven DTC model to grow its domestic dermatology partner network to over 789 clinics, with a worldwide installed
base of over 2,000 devices. The Company is able to offer 90% of DTC patients an introduction to physicians prescribing a reimbursable solution, using XTRAC, within a 10-mile radius of their house. The Company is a leader in dermatology
in-clinic business generation for its partners.
Safe Harbor
This press release includes "forward-looking
statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,”
and “expects,” that suggest future events or trends. These statements, the Company’s ability to generate the growth in its core business, develop and grow an international recurring business model, the Company’s ability to develop social
media marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in
circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory, adverse market conditions or supply chain interruptions resulting from the corona virus
and political factors or conditions affecting the Company and the medical device industry in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties,
any or all these forward-looking statements may prove to be incorrect or unreliable. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or
otherwise. The Company does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. The Company urges investors to carefully review its SEC
disclosures available at www.sec.gov and www.strataskinsciences.com.
Investor Contacts:
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Matthew Hill, Chief Financial Officer
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Chuck Padala, Managing Director
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STRATA Skin Sciences, Inc.
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LifeSci Advisors, LLC
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215-619-3200
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646-627-8390
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ir@strataskin.com
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chuck@lifesciadvisors.com
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