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:
| • | Strengthens the STRATA XTRAC® and VTRAC® brand value proposition in Japan to expand the installed base of over 300 devices in-country |
| • | Takes advantage of STRATA’s strong balance sheet to support the unique recurring revenue business model, now in Japan |
| • | 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 |
| • | The treatment by 308nm Excimer is covered by Japan’s national health insurance with reimbursement rates of $33 per procedure |
| • | 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 |
| • | STRATA expects to see the impact of the recurring revenue business model in Japan as early as the end of 2020 |
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.
