STRATA Skin Sciences (SSKN) Maxim Group’s 2024 Healthcare Virtual Summit summary

Conference overview

• The event was part of a three-day virtual healthcare conference featuring over 85 companies and several panels, with most presentations led by CEOs.

• The session focused on a company specializing in dermatological autoimmune disease treatments, with a unique recurring revenue model based on device placement and per-use fees.

• The company’s CEO provided a business overview, discussed market positioning, and answered both prepared and audience questions.

Business model and market differentiation

• Devices are placed with physicians at no upfront cost, generating revenue through per-use fees; procedures are fully reimbursable and delegatable.

• Two main technologies: XTRAC (excimer laser for psoriasis, vitiligo, atopic dermatitis) and TheraClearX (photopneumatic device for acne).

• Domestic business is recurring revenue-focused, while international sales are primarily capital equipment.

• Recurring revenue drives high contribution margins (over 90%) and is supported by services like DTC advertising, staff training, and insurance support.

• The company is the sole provider in its niche due to exclusive CPT code support and acquisition of its only competitor.

Financial performance and growth

• Over 900 XTRAC and 120+ TheraClearX devices are in the market, with both install bases expanding.

• Recurring revenue represents about two-thirds of total business, with gross margin expanding as this share increases.

• Domestic revenue is about two-thirds, international one-third; international is mostly capital equipment sales.

• Per-procedure, the company receives about $80 from a $200 reimbursement for excimer laser treatments; for acne, it charges $50 per procedure from a $120 average reimbursement.

• Successful clinics can generate $200,000–$300,000 in additional annual revenue per device for excimer treatments, and $75,000–$100,000 for acne devices.