Profile: Cynosure, Inc. (CYNO.O)

Cynosure, Inc. (Cynosure), incorporated in July 1991, develops and markets aesthetic treatment systems that are used by physicians and other practitioners to perform non-invasive procedures to remove hair, treat vascular lesions, rejuvenate skin through the treatment of shallow vascular lesions and pigmented lesions, as well as multi-colored tattoos, temporarily reduce the appearance of cellulite, treat wrinkles, skin texture, skin discoloration and skin tightening, and to perform minimally invasive procedures for LaserBodySculpting for the removal of unwanted fat. The Company’s systems incorporate a range of laser and other light-based energy sources, including Alexandrite, pulse dye, Nd:Yag and diode lasers, as well as intense pulsed light. Cynosure sells 18 different aesthetic treatment systems. Its flagship products are the Apogee Elite system for hair removal; the Cynergy system for the treatment of vascular lesions; the TriActive LaserDermology system for the temporary reduction of the appearance of cellulite; the Affirm and Affirm carbon dioxide (CO2) systems for anti-aging, including treatments for wrinkles, skin texture, skin discoloration and skin tightening; Smartlipo and Smartlipo MPX systems for LaserBodySculpting for the removal of unwanted fat, and the Accolade system for the removal of benign pigmented lesions, including pigmented lesions known as Nevus of Ota and Nevus of Ito, as well as multi-colored tattoos.

In January 2008, Cynosure introduced the Accolade, its sixth flagship product, which is a high powered 755nm, Q-switched Alexandrite laser for the removal of benign pigmented lesions, including pigmented lesions known as Nevus of Ota and Nevus of Ito, as well as multi-colored tattoos. In April 2008, it introduced the Smartlipo MPX workstation, the next generation of its workstations for laser lipolysis. Smartlipo MPX is the only FDA-cleared, dual-wavelength laser system designed to efficiently liquefy fat and tighten skin through tissue coagulation. In July 2008, Cynosure introduced the Affirm CO2 workstation, which, in contrast to the original Affirm workstation, uses an ablative approach, which involves the removal of upper layers of skin, to target the epidermal and dermal layer with the objective of treating deep wrinkles and significant photoaging. The Company sells its products through a direct sales force in North America, four European countries, Japan and China and through international distributors in 55 other countries. As of December 31, 2008, Cynosure had sold more than 8,900 aesthetic treatment systems worldwide.

Hair Removal

Cynosure’s Apogee Elite workstation is its flagship product for hair removal. It is a two-in-one laser system that contains both an Alexandrite laser, which is best suited for hair removal for patients with light skin types, and an Nd:Yag laser, which is best suited for hair removal for patients with medium and dark skin types or tanned skin. The practitioner can switch between these two energy sources simply by pressing a button on the system console. In addition to the Apogee Elite system, each of its Apogee 5500, and Acclaim 7000 systems can be used for hair removal.

Treatment of Vascular Lesions

The Company’s Cynergy workstation is its flagship product for the treatment of vascular lesions. The Cynergy system combines a pulse dye laser, which is best suited for treating shallow vascular lesions, such as port wine birthmarks, facial veins and rosacea, and an Nd:Yag laser, which is best suited for treating large or deep veins, such as leg veins.

Anti-Aging

The Company’s Affirm and Affirm CO2 was created to address the needs of the anti-aging demand. Its Affirm system is its flagship product for anti-aging, including treatments for wrinkles, skin texture, skin discoloration and skin tightening through tissue coagulation. During the year ended December 31, 2008, it introduced the Affirm CO2 system, an ablative workstation with a proprietary scanning delivery system that combines ablative CO2 resurfacing and rejuvenation in a single laser system. The Affirm CO2 system offers a range of settings that enable physicians to customize the treatment based on the aesthetic goals and downtime expectations of individual patients.

Skin Rejuvenation

Skin rejuvenation involves the treatment of shallow vascular lesions and pigmented lesions to rejuvenate the skin’s appearance. In a skin rejuvenation procedure, the practitioner applies the system handpiece to the target area and delivers laser or pulsed light energy. The energy destroys the shallow vascular lesions and pigmented lesions and rejuvenates the skin’s appearance without damage to the treated or surrounding area through the improvement in skin texture and reduction or elimination of skin irregularities. Cooling is generally not required. Patients typically receive between 4 to 6 treatments of approximately 30 minutes each. Treatments are spaced two to four weeks apart. Each of its Apogee Elite, Acclaim 7000 and Cynergy systems can be used for skin rejuvenation through the treatment of shallow vascular lesions and pigmented lesions.

Temporary Reduction of Appearance of Cellulite

Cynosure ‘s TriActive LaserDermology system is its flagship product for temporarily reducing the appearance of cellulite. The TriActive system contains six low-energy diode lasers, mechanical massage and suction features and localized cooling. LaserBodySculpting for the Removal of Unwanted Fat. Liposuction for body sculpting is the primary procedure to remove or reduce fat cells. Its Smartlipo system is its flagship product for LaserBodySculpting for the removal of unwanted fat. In February 2008, it introduced is Accolade system, which is its flagship solution for the removal of pigmented lesions. In April 2008, it introduced the Smartlipo MPX workstation, the next generation of Cynosure’s workstations for laser lipolysis.

The Company competes with Candela Corporation, Cutera, Inc., Lumenis Ltd., Palomar Medical Technologies, Inc., Syneron Medical Ltd. and Solta Medical, Inc.