Syneron Medical Ltd. (ELOS) announced the commercial launch of the elure topical skin whitening products in several Asian markets. The company will sell these products through its dermatologists, beauty salons and spas in Asia from the first quarter of 2010.   The elure skin whitening product is an enzymatic skin whitening treatment that targets and decomposes melanin to reveal a visibly lighter and exceptionally luminous skin tone. The product uses a naturally occurring bio-active substance, Melanozyme, which decomposes the melanin in a fast and safe manner with no side effects.

In the process, Melanozyme is combined with a bio-activator to diminish the dark colored pigment in the skin. The use of Melanozyme eliminates side effects such as skin redness and burning sensation which are seen in the case of other skin whitening products available in the market.

It has been estimated that skin whitening is one of the fastest growing segments

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Syneron Medical Ltd. (ELOS) is set to acquire Primaeva Medical, Inc., an aesthetic technology firm based in Pleasanton, CA. The acquisition is expected to close before the end of 2009. Per the agreement, Syneron will acquire Primaeva for $7 million in cash and up to $23 million of additional payment based on the achievement of certain milestones. The Primaeva acquisition helps Syneron gain access to a new technology for the treatment of wrinkles. The Primaeva product uses the bipolar fractional radiofrequency (RF) energy for the treatment of skin wrinkles and laxity in a selective and predictable manner. Its unique energy delivery mechanism resulted in skin tightening with minimal downtime.   An important consideration in skin treatment is the excessive heating of skin. The Primaeva product eliminates this as the treatment temperature is preselected and energy is delivered directly within the dermis, thereby eliminating the uncertainty associated with ...

Syneron Medical, Ltd. (ELOS) was founded in 2000 and is engaged in the design, development, and marketing of aesthetic medical products based on its proprietary electro-optical synergy (ELOS) technology. Its medical aesthetic devices are powered by proprietary software, and use combined-energy technology of bi-polar radio frequency (RF) and optical energy (laser or non-coherent light).

ELOS competes in a very competitive market. With more than half of its sales derived from the United States, a weak economic outlook leads us to believe that sales growth will slow. As a result, we have reduced our revenue and EPS estimates.

Given the largely discretionary nature of the aesthetics laser business, the outlook could weaken further given current trends in the global economy. We are reducing out target price and recommending a Sell rating for this stock. Zacks Investment Research