FiercePharma  Mar 27  Comment 
Allergan’s fat-fighting Zeltiq has been on a tear as of late, but doctors aren’t expecting that trend to last as long as they once did. Long-term expectations for the product “are moderating,” Bernstein analyst Ronny Gal wrote in a Tuesday...
SeekingAlpha  Apr 28  Comment 
Motley Fool  Feb 13  Comment 
These stocks helped lead the market higher. Find out why.
New York Times  Feb 13  Comment 
A $2.5 billion purchase of Zeltiq is the drugmaker’s latest bet on growth as it braces for increased competition.
Motley Fool  Feb 13  Comment 
Allergan gobbles up Zeltiq Aesthetics for $2.48 billion.
Benzinga  Feb 13  Comment 
Zeltiq Aesthetics Inc (NASDAQ: ZLTQ) shares are trading higher by $6.28 (12.5 percent) at $55.68 in Monday's session. Before the open, Allergan plc Ordinary Shares (NYSE: AGN) announced it would purchase the company for $2.47 billion or...


ZELTIQ Aesthetics (NASDAQ:ZLTQ) is a medical device company which developed and sells a fat reduction device called CoolSculpting. The system selectively cools regions of fat to increase their rate of elimination by the body. The procedure is targeted for individuals with relatively small fat bulges rather than for obese individuals. This is because the technology is typically ineffective on obese individuals who require significant decreases in their body fat. Zeltiq makes money by selling the systems to physicians as well as charging procedure fees for each treatment performed.[1]

Business Overview

Zeltiq's total revenue for the full year 2010 was $25.5M. This compares to a total revenue of $1.6M in 2009. However, the company reported a net loss of 2010 of $13.5M. This is an improvement over the net loss of $17.6M in 2009. While Zeltiq has historically had a large research and development expense, this costs was surpassed by sales and marketing in 2010. [2]

New Updates

The company's initial public offering of stock on the NASDAQ occurred on October 18, 2011. The company offered 7M shares each for $13. This was below the $14-$16 price range. The company raised $91M through the deal. The lead managers of the deal were JP Morgan and Goldman.[3]

Trends & Forces

Reliance on luxury health

Because Zeltiq's devices aim to help individuals with relatively small fat bulges, the demand for their product is largely an additional luxury good. Unlike procedures aimed at obese individuals, the use of CoolSculpting does not prevent or solve an immediate health risk. As a result, demand for such a service will rest on individuals who are willing and able to pay for cosmetic improvements. By contrast, since the procedure is noninvasive and treats fat bulges, the potential demand for the product is likely quite large. [4][5]

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki