IRVINE, Calif. - InMode Ltd . (NASDAQ:INMD), a pioneer in medical technology, has secured a preliminary injunction from the U.S. District Court for the Central District of California against entities accused of selling counterfeit versions of its Morpheus8 radiofrequency devices and accessories. The court's decision aims to protect public safety and uphold InMode's trademark rights.
The legal action commenced on September 3, 2024, with the court granting a Temporary Restraining Order (TRO) upon reviewing compelling evidence presented by InMode. The TRO was considered to be in the public interest, preventing the distribution of fake Morpheus8 products that could potentially be used in medical treatments by unsuspecting third parties. Following this, the court has now issued a preliminary injunction, which includes freezing the assets and halting the listings of the sellers involved in the counterfeit trade.
InMode's CEO, Moshe Mizrahy, emphasized the company's commitment to public safety and its zero-tolerance policy towards fraudulent business practices. "We will take necessary action with online platforms and sellers participating in the irresponsible use, sale, or distribution of our brand and counterfeit products associated with it," Mizrahy stated.
This legal measure is part of InMode's broader initiative to enforce against counterfeit sales and protect consumers from the potential harm caused by unauthorized Morpheus8 devices. Patients in the United States seeking assurance of quality care can locate authorized InMode providers through the company's website.
InMode is recognized for its innovative radiofrequency technology that is utilized in a wide range of medical procedures, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. The company continues to focus on the development and improvement of minimally invasive medical technologies.
The information in this article is based on a press release statement from InMode Ltd.
In other recent news, InMode Ltd. reported third-quarter revenue projections of approximately $130.0-130.1 million, surpassing market expectations and reflecting a 5.6% year-over-year growth. Despite this, InMode revised its full-year 2024 revenue guidance downward to $410-420 million due to ongoing challenges in the global aesthetics market. BTIG initiated coverage on InMode with a Buy rating and a price target of $25, citing the company's growth potential. Meanwhile, Baird maintained an Outperform rating on the company, while Canaccord Genuity kept a Hold rating, both citing ongoing risks and uncertainties. InMode also announced a new share repurchase program, authorizing the buyback of up to 7.68 million ordinary shares, and significant changes to its executive team as part of its global expansion strategy. These developments underscore InMode's strategic efforts to navigate market challenges while continuing to innovate in the medical aesthetic treatment sector.
InvestingPro Insights
InMode's recent legal victory against counterfeit sellers aligns with its commitment to protecting its brand and ensuring public safety. This move could potentially strengthen the company's market position and consumer trust. According to InvestingPro data, InMode's financial health appears robust, with a market capitalization of $1.51 billion and a P/E ratio of 10, suggesting the stock may be undervalued relative to its earnings.
InvestingPro Tips highlight that InMode holds more cash than debt on its balance sheet, indicating strong financial stability. This solid financial footing could support the company's ongoing efforts to protect its intellectual property and invest in innovation.
Despite recent challenges, including a 16.16% revenue decline in the last twelve months, InMode maintains a healthy gross profit margin of 82.27%. This high margin suggests the company's products, including the Morpheus8 line, command premium pricing in the market.
It's worth noting that InMode's stock price movements have been quite volatile, as pointed out by another InvestingPro Tip. This volatility could be influenced by factors such as the ongoing legal battles and market dynamics in the medical technology sector.
For investors seeking a deeper understanding of InMode's financial landscape, InvestingPro offers 10 additional tips, providing a comprehensive view of the company's performance and potential.
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