Ilooda boasts a profit structure in which its margins improve in line higher equipment sales and greater frequency of procedures and the resultant rise in medical consumables sales. Having secured a number of healthy distributors around the globe, the firm is well situated to make a smooth foray into global markets. And, Ilooda is planning to release new products, including a HIFU system in 2H20 and a VSLS system in 1H21.
Offers appealing business model
Ilooda is an energy-based aesthetic medical device player boasting laser, high-frequency, and high-intensity focused ultrasonic (HIFU) proprietary technologies. Its product lineup includes Secret RF (fractional needle RF system), Bikini (laser), and Fraxis Duo (laser+RF). As a minimally invasive system based on micron needles, Secret RF sales should lead to sales of (high-margin) medical consumables (ie, needles). The firm boasts a profit structure in which its margins improve in line higher equipment sales and greater frequency of procedures and the resultant rise in medical consumables sales.
Boasts solid global business network
Ilooda has in place around 60 distribution partners in 48 countries across the world, including Cutera, a Nasdaq-listed medical aesthetics device firm based in the US. Harnessing Cutera’s marketing channels, Ilooda is well positioned for success in the US market. Of note, Ilooda is currently looking for other US-based distribution partners for supply of its laser/HIFU devices. Moving ahead, we anticipate the smooth entry of the firm into overseas markets via the securing of prominent distribution partners.
Expectations rising towards new HIFU and VSLS devices
This month is to usher in Illoda releases of new HIFU devices Hyzer Me and Hyzer Eye in the domestic market. As is the case for its radio-frequency devices, the firm should enjoy consumable cartridge sales for its HIFU devices. We predict that HIFU devices will emerge as Ilooda’s flagship product line going forward. Having obtained Europe CE mark certification, Ilooda is to file for FDA approval regarding one of its products in 2H20. Given such, in 2021, Ilooda should come to be able to venture into both Europe and the US, the world’s largest medical aesthetics device markets.
Of note, existing 532nm wavelength lasers are effective in the treatment of skin disorders, but they are known to bring about side effects such as red spots or pigmentation stemming from blood vessel damage. In 1H21, Ilooda is to launch VSLS, a laser salvage treatment device, in the domestic market. The new device promises to reduce treatment side effects to a minimum and to reduce the recovery period to one month (vs the current six months). Representing the consummation of all of the firm’s proprietary technologies (including pigmentation recognition technology and laser output control by the concentration of pigment), the new VSLS device offers a promising alternative to existing pigmentation treatments. The new product is forecasted to generate sales of around W5bn pa.
