Venus Concept Announces Exclusive Strategic Supply Arrangement with Skin Laundry
Venus Concept (NASDAQ: VERO) announced a strategic supply agreement with Skin Laundry Holdings on June 17, 2024. The deal includes an initial order of Venus Viva devices and consumables for Skin Laundry's US clinics. These devices utilize Venus Concept's (MP)2 NanoFractional RF Technology with SmartScan, known for effective skin resurfacing and tightening. Venus Concept boasts over 9,000 systems globally. Skin Laundry, founded in 2013, operates 66 clinics and specializes in quick, minimally invasive energy facials. Both companies anticipate continued collaboration as Skin Laundry expands domestically and internationally.
- New strategic supply agreement boosts Venus Concept's market reach.
- Initial order of Venus Viva devices signifies confidence in Venus Concept's technology.
- Over 9,000 installations globally highlight the widespread adoption of Venus Concept's systems.
- Skin Laundry's plan to perform thousands of treatments per month implies steady demand.
- Collaboration with a reputed partner like Skin Laundry enhances Venus Concept's brand value.
- No disclosed financial terms, leaving potential revenue impact unclear.
- Dependency on Skin Laundry's expansion plans poses a risk if growth slows.
- Operational reliance on Skin Laundry may affect Venus Concept's financial performance if the partnership falters.
Insights
The strategic supply arrangement between Venus Concept Inc. and Skin Laundry Holdings, Inc. holds significant potential for both companies. Venus Concept could experience a notable revenue surge due to the initial order of Venus Viva devices and the recurring sales of consumable Viva tips. Investors should closely monitor subsequent earnings reports for an uptick in revenue from this arrangement. In the short term, this deal could improve Venus Concept's market position in the aesthetic technology sector, providing competitive leverage against other players.
Long-term implications include a sustained revenue stream if Skin Laundry continues to purchase additional devices and consumables. However, it’s essential to consider that the success of this partnership is contingent upon Skin Laundry's growth and customer demand for their treatments. Investors should also assess the durability and lifecycle of the Viva devices to understand potential future replacement orders.
The collaboration leverages Venus Concept’s proprietary (MP)2 NanoFractional RF Technology with SmartScan, which combines RF (Radio Frequency) and PEMF (Pulsed Electromagnetic Fields) to enhance collagen and elastin formation. This technology is clinically validated, focusing on both resurfacing and tightening the skin. Such technological advantages are likely to resonate well with customers at Skin Laundry clinics, contributing to the efficacy and popularity of the treatments.
For retail investors, understanding the clinical efficacy and consumer satisfaction rates will be crucial. If the technology delivers as promised, it could lead to higher customer retention and an expanded client base for Skin Laundry, indirectly benefiting Venus Concept through increased device usage and consumable purchases.
From a market perspective, this deal could potentially expand Venus Concept's footprint within the medical aesthetic technology market, particularly in the US where Skin Laundry has a strong presence. The unique selling proposition of Skin Laundry’s quick and minimally invasive treatments aligns well with current consumer trends towards convenience and efficacy in skincare.
This alignment with market trends might not only enhance customer acquisition for Skin Laundry but also bolster Venus Concept’s reputation for innovative technologies. Investors should consider how effectively Venus Concept can scale this model to other partners or clinics globally to maximize growth potential.
TORONTO, June 17, 2024 (GLOBE NEWSWIRE) -- Venus Concept Inc. ("Venus Concept" or the "Company") (NASDAQ: VERO), a global medical aesthetic technology leader, announced today that it has entered a new strategic resurfacing and skin tightening device supply arrangement with Skin Laundry Holdings, Inc. ("Skin Laundry"). The supply arrangement included an initial order for Venus Viva ("Viva") devices for their locations across the United States and the associated Viva tips consumable to complete the procedures. Skin Laundry is placing the devices throughout their chain of clinics and plans to perform thousands of skin resurfacing treatments per month using Venus Concept’s proprietary (MP)2 NanoFractional RF Technology with SmartScan, which provides clinically validated efficacy in both resurfacing and tightening. Venus Concept’s (MP)2 technology provides both RF and PEMF for optimal collagen and elastin formation with over 9,000 systems installed globally.
Skin Laundry, founded in 2013 in Los Angeles, has been a leader in the aesthetic industry in how they have changed the way people treat and transform their skin through safe, effective, and affordable energy facials. With 66 clinics globally and growing, Skin Laundry offers a wide-array of the latest skin-care technologies and protocols. Their Signature Laser Facial procedure, which can be completed in less than 30 minutes and with minimal downtime, is particularly attractive to customers.
"Skin Laundry is an aesthetic market leader that has empowered customers seeking skincare that is more accessible and less invasive," said Dr. Hemanth Varghese, President and Chief Operating Officer of Venus Concept. "The Venus Viva delivers safe and highly effective treatment outcomes with our proprietary and innovative aesthetic technologies. Skin Laundry’s initial order is a testament to our capabilities in supporting both small and large aesthetic service providers with top-quality devices and customer service. We look forward to continuing to support Skin Laundry’s needs as they expand their practices in the US and globally with other technologies to treat their customers’ ever-growing needs."
Cautionary Statement Regarding Forward-Looking Statements
This communication contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained herein that are not of historical facts may be deemed to be forward-looking statements. In some cases, you can identify these statements by words such as such as "anticipates," "believes," "plans," "expects," "projects," "future," "intends," "may," "should," "could," "estimates," "predicts," "potential," and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements are based on current expectations, estimates, and projections about our business, and the industry in which the Company operates and management's beliefs and assumptions and are not guarantees of future performance or developments and involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking statements in this communication may turn out to be inaccurate. Factors that could materially affect our business operations and financial performance and condition include, but are not limited to, those risks and uncertainties described under Part II Item 1A-"Risk Factors" in our Quarterly Reports on Form 10-Q and Part I Item 1A-"Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. You are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. The forward-looking statements are based on information available to us as of the date of this communication. Unless required by law, the Company does not intend to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise.
About Venus Concept
Venus Concept is an innovative global medical aesthetic technology leader with a broad product portfolio of minimally invasive and non-invasive medical aesthetic and hair restoration technologies and reach in over 60 countries and 12 direct markets. Venus Concept's product portfolio consists of aesthetic device platforms, including Venus Versa, Venus Legacy, Venus Velocity, Venus Fiore, Venus Viva, Venus Glow, Venus Bliss, Venus BlissMAX, Venus Epileve, Venus Viva MD and AI.ME. Venus Concept's hair restoration systems include NeoGraft® and the ARTAS iX® Robotic Hair Restoration system. Venus Concept has been backed by leading healthcare industry growth equity investors including EW Healthcare Partners (formerly Essex Woodlands), HealthQuest Capital, Longitude Capital Management, Aperture Venture Partners, and Masters Special Situations.
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