TORONTO - Venus Concept Inc. (NASDAQ: NASDAQ:VERO), a leader in medical aesthetic technology, has announced new partnerships and product certifications that enhance its international presence. The company has expanded its distributor network in Taiwan through Index International Ltd., a subsidiary of Paragon Meditech, and in Colombia with Quirugil S.A. Additionally, Venus Concept has obtained certification for select products in India via its exclusive distribution partner, Spectra Medical (TASE:PMCN) Systems.
Paragon, with a history dating back to 2014, boasts over 130 employees across China, Hong Kong, and Taiwan and brings considerable experience in distributing aesthetic medical devices. Quirugil, a member of Holding Medical Healthcare LLC, has a significant presence in Colombia with over 109 employees and operates five branches nationwide.
The certifications in India cover Venus Concept's products, including the Venus ARTAS iX, Venus Legacy, Venus Bliss MAX, and Venus Viva, positioning the company to immediately commence sales in one of the largest aesthetics markets globally.
Rajiv De Silva, CEO of Venus Concept, expressed enthusiasm for the enhanced growth and profitability prospects these developments bring. He highlighted the strategic importance of the new agreements in Columbia and Taiwan and the potential for leveraging Paragon's established distribution network in additional Asia-Pacific countries.
The company's forward-looking statements, as per the communication, indicate a strategic plan for continued expansion and are subject to various known and unknown risks and uncertainties.
Venus Concept's portfolio includes a range of minimally invasive and non-invasive aesthetic and hair restoration technologies. Its products serve over 60 countries, with direct operations in 12 markets. The company's backers include prominent healthcare industry growth equity investors.
This article is based on a press release statement, presenting the key facts without endorsement of the company's claims. Venus Concept's stock is traded on NASDAQ under the ticker VERO.
In other recent news, Venus Concept Inc. has made significant strides in financial restructuring and product development. The medical technology company has secured new agreements providing financial relief and additional capital, including an additional $1 million from an existing bridge loan agreement with Madryn Health Partners. This move is part of Venus Concept's broader efforts to stabilize its capital structure and maintain operational liquidity.
The company has also extended its strategic transaction timeline, giving it more flexibility to navigate potential changes. This decision is part of a broader transformation plan aimed at enhancing the capital structure and supporting long-term profitability.
Venus Concept has reduced its total debt by 25% through an equity transaction with Madryn Asset Management, converting $15 million of senior debt into Series Y preferred stock. Despite a 17% year-over-year decrease in revenue, down to $16.6 million, the company has achieved a 37% reduction in cash used in operations and a 39% reduction in total debt.
In terms of product development, Venus Concept received clearance from Australia's Therapeutic Goods Administration to market its Venus Bliss MAX system, a platform for body shaping treatments. This approval expands the company's global reach.
These are recent developments that highlight Venus Concept's ongoing efforts to navigate a challenging fiscal landscape while investing in restructuring and market expansion.
InvestingPro Insights
While Venus Concept Inc. (NASDAQ: VERO) is making strategic moves to expand its international presence, recent financial data from InvestingPro paints a challenging picture for the company. With a market capitalization of just $3 million, VERO is currently operating in a difficult financial environment.
InvestingPro data reveals that Venus Concept's revenue for the last twelve months as of Q2 2024 stood at $69.81 million, with a concerning revenue growth decline of -19.23% over the same period. This decline in revenue aligns with one of the InvestingPro Tips, which indicates that the company is "quickly burning through cash."
Another InvestingPro Tip highlights that analysts do not anticipate the company will be profitable this year. This is supported by the negative operating income of -$27.75 million and an operating income margin of -39.75% for the last twelve months as of Q2 2024.
Despite these challenges, it's worth noting that Venus Concept maintains a gross profit margin of 68.39%, suggesting that its products still command strong pricing power in the market. This could be a positive factor as the company pursues its international expansion strategy.
Investors considering VERO should be aware that InvestingPro lists 7 additional tips for this stock, providing a more comprehensive analysis of the company's financial health and market position. These insights could be particularly valuable given the company's current financial situation and its efforts to grow internationally.
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