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Cutera partners with L'Oréal Japan to distribute skincare products

EditorNatashya Angelica
Published 07/31/2024, 10:44 AM
CUTR
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BRISBANE, Calif. - Cutera , Inc. (NASDAQ:CUTR), a global provider of aesthetic and dermatology solutions, announced a strategic partnership with L'Oréal Japan Co. to exclusively distribute select SkinCeuticals products in Japan. The collaboration focuses on medical and physician-led clinics, aiming to expand the reach of SkinCeuticals' skincare innovations.

The partnership, set for an initial term of three years with options for renewal, will leverage Cutera's established network in the Japanese medical aesthetics market. L'Oréal Japan Co. will support the endeavor with comprehensive marketing and advertising initiatives.

Brent Hauser, Cutera’s International President, expressed enthusiasm for the collaboration, stating, "This agreement underscores our commitment to supporting our existing customer base by expanding access to high-quality skincare solutions."

Cutera plans to introduce the SkinCeuticals product line to its Japanese customers during the fourth quarter of the year. The company anticipates that the financial impact of the agreement will be immaterial in 2024.

The partnership aims to capitalize on Cutera KK's strong presence in Japan and L'Oréal's expertise in skincare to accelerate the growth of SkinCeuticals in the region.

Cutera, with over 25 years of experience, has been dedicated to improving lives through medical aesthetic technologies. Similarly, L'Oréal has a history spanning 115 years, focusing on fulfilling beauty aspirations globally with its extensive brand portfolio and commitment to sustainability.

The announcement includes forward-looking statements that are subject to risks and uncertainties, which may cause actual results to differ materially from those projected. These statements are based on management's current expectations and are not guarantees of future performance.

This strategic partnership is based on a press release statement and represents a significant move for Cutera in the Japanese market.

In other recent news, Cutera Inc. has been active in both the boardroom and the marketplace. The company's shareholders approved all proposals at the recent Annual Meeting, including the election of directors, ratification of the independent auditor, and executive compensation. In a significant move, the total number of shares available for issuance increased by 2,395,275 shares following the amendment and restatement of the Company’s 2019 Equity Incentive Plan.

Cutera's Q1 2024 financial results highlighted a gross margin improvement to 40% and a reduction in operating expenses, despite a decrease in total revenue from the same period last year. The company reported Q1 revenue of $38.8 million and a non-GAAP loss from operations of $20.4 million. Cutera reiterated its annual revenue guidance of $160 million to $170 million, forecasting a year-end cash balance of $55 million to $60 million.

In recent developments, Cutera has announced the global launch of its AviClear device and the introduction of the xeo+ product in North America. The company also appointed Jeryl "Jeri" Hilleman, a seasoned executive with over three decades of healthcare industry experience, to its Board of Directors. These developments indicate Cutera's focus on building a robust AviClear franchise and operational excellence.

InvestingPro Insights

Cutera, Inc. (NASDAQ:CUTR) has recently announced a promising partnership with L'Oréal Japan Co., which is poised to expand their distribution reach. However, an analysis of Cutera's financial health and market performance reveals some challenges that investors should be aware of. Here are some insights based on the latest data from InvestingPro:

InvestingPro Data:

  • Market Cap (Adjusted): 29.14M USD, reflecting a relatively small player in the industry.
  • Revenue Growth (Last twelve months as of Q1 2024): -21.0 %, indicating a contraction in sales which aligns with analysts' expectations of a sales decline in the current year.
  • Price, Previous Close: 1.44 USD, which has seen a significant decline over various timeframes, including a -92.8 % return over the past year.

InvestingPro Tips:

Investors should note that Cutera operates with a significant debt burden and is quickly burning through cash. These factors, combined with the lack of profitability over the last twelve months, paint a cautious picture for the company's immediate financial trajectory. Moreover, two analysts have revised their earnings downwards for the upcoming period, which may suggest further challenges ahead.

To gain a deeper understanding of Cutera's financial outlook and to access more detailed analysis, investors can explore additional InvestingPro Tips. There are 12 more tips available on InvestingPro, offering a comprehensive view of the company's financial health and market performance.

For those interested in leveraging these insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. This strategic partnership with L'Oréal Japan Co. could be a pivotal moment for Cutera, and staying informed with InvestingPro's full suite of tools and data can help investors make more informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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