EndyMed expands sales effort in U.S.
After five years of selling its skin rejuvenation devices to medical professionals through a distributor, EndyMed Medical (TASE:ENDY) has launched a U.S.-based direct sales operation through subsidiary, EndyMed USA.
“During the second half of 2014, we expanded the sales force team to cover all major markets in the U.S. and significantly increased our U.S.-based marketing activity,” Elad Magal, CEO, says in an interview with BioTuesdays.com.
“Based on increased demand for our proprietary 3DEEP technology, we now have access to doctors everywhere in the U.S. and at all major national dermatological and aesthetic conferences,” he adds.
Founded in 2007, Israel-based EndyMed began selling its EndyMed PRO anti-wrinkle and skin tightening system in 2009, the PRO Fractional Skin Resurfacing hand piece in 2011 and a revolutionary intensif micro needle fractional radio frequency (RF) hand piece in 2014.
The new intensif hand piece is the only FDA-cleared RF hand piece that uses 25 non-insulated micro needles for minimally invasive tissue coagulation to a depth of 3.5 mm.
EndyMed’s technology is based on its unique 3DEEP radio wave energy. Mr. Magal explains that human skin is comprised of three layers: the uppermost epidermis, the middle layer dermis and subcutaneous fat in the bottom layer. Collagen in the dermis holds skin tight without wrinkles. But after the age of 30, humans lose 1% to 2% of their collagen annually, resulting in loose, wrinkled skin.
According to Mr. Magal, research has shown that heating the dermis to a temperature of 50-to-55 degrees Celsius triggers skin fibroblasts to produce new, more active collagen and elastic fibers. “The challenge faced by aesthetic medicine is to heat the dermis to that temperature without burning the outer epidermis.”
He points out that laser and light source technologies are less effective than radio waves for skin tightening for two main reasons: insufficient penetration of skin and limited use on dark skin.
“The optimal technology for non-invasive collagen remodeling is radio waves, which have the ability to penetrate skin depth efficiently, regardless of the skin color,” he points out.
What differentiates EndyMed’s 3DEEP technology from the competition is that it uses six energy sources simultaneously, while maintaining full control of polarity.
“By controlling the electricity phase of a procedure, we are able to concentrate a significant amount of energy to a greater depth in the skin, bypassing the outer epidermis layer of skin,” Mr. Magal contends. “3DEEP technology enables more efficient skin treatment with minimum discomfort and lower risk, regardless of a patient’s skin color.”
Mr. Magal, who moved into the executive suite 12 months ago, says the technology has received broad recognition, with articles in peer-reviewed journals such as the Journal of Cosmetic Dermatology, Journal of Clinical Aesthetic Dermatology, Lasers in Surgery and Medicine, Journal of Cosmetic and Laser Therapy and Journal of the American Academy of Dermatology.
According to a report published by the American Society of Plastic Surgeons in 2013, non-intrusive cosmetic treatments in the U.S. soared to 13 million in 2012 from 5.5 million in 2000, while intrusive cosmetic treatments declined to 1.6 million from 1.9 million over the same period.
According to research by Euromonitor International and BCC Research, the professional segment of the skin treatment market, which includes doctors and beauty practitioners, is valued at more than $5-billion a year.
In the past, skin treatments were conducted at aesthetic clinics, but Mr. Magal says the market is transitioning to home use products and treatments. The market leader in the field is hair removal devices, which generated sales of more than $1-billion in 2011, with forecasts for the overall home use market growing by some 50% a year.
EndyMed figures the current market for skin rejuvenation products used in the home is some $66-billion, of which the main component is the sale of creams for skin treatment.
Mr. Magal says the company has begun marketing EndyMed’s home use device, the Newa, in Japan and China, which appear to be the leading marketplaces for advanced devices for home use treatments.
“Thousands of units have already been sold in these markets, at a relatively high price per unit and we are at an advanced negotiations with distributers in additional countries in this area,” he adds.
Revenue for the third quarter of 2014 amounted to about NIS 9.86 million, compared with NIS 5.89 million in the same quarter of the previously year, representing an increase of 67%.