NY firm buys PhotoMedex lines for $42M
Horsham-based seller goes over-the-counter
Mela Sciences Inc., a Nasdaq-traded skin-care company in Irvington, N.Y., says it has paid $42.5 million to buy the Vtrac and Xtrac laser dermatology systems and their accounts from Horsham-based PhotoMedex. Xtrac is used to treat psoriasis and other skin diseases.
Seller PhotoMedex, under chief executive Dov Rafaeli, says it will use the proceeds mostly to pay down its debt, and will now concentrate on its consumer skin care businesses, including Kyrobak, Neova and no!no! brands.
The reported price "includes all of the accounts receivable, inventory and fixed and intangible assets of the businesses," Mela says, adding that "certain (PhotoMedex) investors" helped finance the transaction. Xtrac and Vtrac sales totalled $30.6 million last year. The deal makes Mela "a multi-product company," chief executive Michael R. Stewart said in a statement.