The fat removal procedure underlying this company was developed by doctors at the Wellman Center at Massachusetts General Hospital, a teaching affiliate of Harvard University and approved by the FDA in 2010. The company has moved to the black for the past two quarters.
Zeltiq Aesthetics, Inc. (ZLTQ)
from The Oberweis Report
Zeltiq Aesthetics, Inc. (ZLTQ) is a medical device company that has developed and commercialized products utilizing its proprietary controlled cooling platform. The company’s first commercial product, the CoolSculpting system, is designed to reduce stubborn fat bulges and is currently indicated to treat a patient’s flanks (“love handles”) and thighs.
By selectively reducing the temperature of fat cells in the treated area, a process called apoptosis occurs which naturally eliminates the fat cells without causing any scar tissue or damage to the skin, nerves, or surrounding tissue. In addition to selling the CoolSculpting system, the company also receives sales from consumable products including CoolCards—which allow the physician to perform a certain number of procedures—gel pads, and plastic liners, all accounting for 46% of total revenue in the company’s last quarter.
Zeltiq expects to drive growth in 2015 through an expanded sales force, additional approvals in international markets such as China, and the approval of a new applicator that will be able to treat the area underneath the chin.
In the company’s latest reported third quarter, sales increased approximately 55% to $45.7 million from $29.5 million in the third quarter of last year. Zeltiq reported earnings per share of $.12 in the latest reported third quarter versus a loss in the same quarter of last year.
These shares may be appropriate for risk-oriented investors.
Jim Oberweis, CFA, The Oberweis Report, www.oberweisreport.com, 800-323-6166, January 2015