Thermage Profits Rise Despite Tough Market
A Thermage shareholder conference call on August 11, 2008 revealed that despite a slowing market, there was growth in both sales and profit for the second quarter. Thermage's stock price has slumped into the $2 range in recent months.
Thermage acquired Reliant Technologies earlier this summer, causing growing concern among physicians who own one or both technologies.
Los Angeles plastic surgeon Michael A. Persky, MD said in response to the merger,
"I have used all of Reliant's Fraxel technologies (re:fine, re:store, and re:pair) over the past three years. The newest Fraxel re:pair, a fractionated CO2 laser, is excellent technology. I have also followed Thermage technology since it's inception.
I have hoped to incorporate the Thermage technology into my practice for many years, but have been consistently disappointed in the patient satisfaction with the procedure, as well as the results that I have personally seen in patients treated in demonstrations."
"The two companies have very different reputations among physicians who value quality. The two companies are very similar in their charging physicians excessive "consumable" fees for hand pieces and treatment tips.
It makes sense for Thermage to pick up a company that thrives on consumables, as it does itself. Thermage was a technology that came to market before it's science was worked out properly, and thus the patient satisfaction has been very low.
I hope that the combination of companies does not reflect poorly upon the Fraxel laser technology which has proven to be safe and effective. It is all about the bottom line "dollar". Thermage has shown that as a company it can make money with an inferior product, hopefully their acquisition of Reliant will not tarnish the Fraxel name. "
As a Fraxel user, I will welcome the PR team of Thermage in promoting the Fraxel technology."
A Fraxel representative has informed Real Beauty News that although the two companies are partnering, not much will change in the greater marketplace, but that the upper management will be condensed.
Kristin Meyer for Real Beauty News
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