PhotoMedex says Xtrac revenues expected to double in 2007

By Jennifer Lanning Drey

Portland, Ore., Nov. 6 - PhotoMedex, Inc. expects revenues from its lead product, the Xtrac laser system, to grow to $6.5 million this year and to double that number in 2007, Jeffrey F. O'Donnell, PhotoMedex's president and chief executive officer, said Monday at the Rodman & Renshaw 8th Annual Healthcare Conference.

"We look at '07 as a profitable year for the company," he said.

The company's total product revenues grew to $28.4 million in 2005 and are expected to total about $34 million in 2006, O'Donnell said.

Revenues related to the PhotoMedex Xtrac system, which is used to treat psoriasis, demonstrated accelerated growth in the last year after most insurance companies began reimbursing the procedure, O'Donnell said.

Of the 275 Xtracs placed in the United States, 80% have no reimbursement challenges. A year ago, reimbursement issues were the company's biggest challenge, he said.

PhotoMedex estimates that if 15% of current psoriasis patients were to use the Xtrac technology, the market opportunity would be about $1 billion.

PhotoMedex places the Xtrac system in physicians' offices at no charge and earns a per-procedure fee, which generates a recurring revenue stream for the company.

The Xtrac also is approved for treatment of vitiligo, eczema and leukoderma.

PhotoMedex develops excimer laser and fiber optic systems and techniques for dermatological applications. The company is located in Montgomeryville, Pa.

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