SOUTH WALES, U.K.—In a July 28th article on WalesOnline.co.uk, a website focused on Welsh news and information, Chromogenex was featured as one of three companies that, according to the headline, are “Rising to the challenges of economic uncertainty.”
Chromogenex is a developer and manufacturer of cosmetic and medical laser systems. According to the article, the Alternative Investment Market venture announced that, for the financial year to the end of December 2007, Chromogenex generated revenues of $8.16 million dollars, $9.11 million for the previous year—and pre-tax losses of $1.38 million dollars compared to $664,000 dollars in 2006. Chromogenex chairman Peter McGuinness said, “While the first half, and in particular the first quarter, has been impacted by no sales in Canada and a general slowdown, the board expects an improvement in performance in the second half.”
The same day the WalesOnline article was posted, the company issued statements that trading of its stock had been suspended—and then reinstated. Also that day, Chromogenex issued a press release saying it has received Section 510(K) approval from the U.S. Food and Drug Administration to market and sell its Chromolite EP (Enhanced Pulse), in the U.S. Chromolite EP is an intense pulsed light system used for the treatment of unwanted hair, and for photo rejuvenation and active acne. The portable device was designed for use within a clinic or medical spa environment.
McGuinness said that the Chromolite line accounts for 40% of the company’s sales, and that the FDA approval represents a “significant achievement in helping drive further revenues,” given that the U.S. currently accounts for about 50% of the world healthcare market.
The company also plans to launch three new products in the third quarter of 2008, to address markets for laser-assisted liposuction, body-shaping and cellulite treatment. These releases—along with the FDA approval—are part of the plan to recover in the second half of the year; another remedy is a cost-cutting plan already in place.
Last year Chromogenex introduced its laser-based Nicolite system just days ahead of the U.K.’s ban on smoking in public spaces. Nicolite, designed to help people stop smoking, uses a beam of low-power light to stimulate the release of endorphins by the body. Research suggests that endorphins, the body’s natural painkillers, also help to suppress physical cravings such as the desire for nicotine.
