Israel-based InMode (INMD) is a leading global provider of minimally and non-invasive cosmetic procedures. The company develops, manufactures and markets devices harnessing novel radio-frequency technology, explains Tom Bishop, editor of BI Research.
Most notably InMode’s devices can be used for fat reduction while simultaneously tightening the skin using just local anesthesia, no scalpel, no scarring and with recovery time of about a day or so instead of a couple weeks.
Products are primarily designed to address three treatment areas — face and body contouring, medical aesthetics (such as sunspots, hair, wrinkles) and women’s health.
InMode’s products, by their very nature of being minimally invasive and not requiring hospitalization or anesthesia or lengthy recovery time or in some cases even much face-to-face time with physicians, put InMode’s technology/platforms in a strong competitive position post-pandemic.
And this is especially true for the newly introduced Evoke (face and neck skin tightening, fat reduction and muscle toning, all in one hands-free device) and Evolve (facial and neck skin tightening, also hands free).
These RF devices are attached to the head or neck and then allowed to work on the area, eliminating most of the physician-patient interaction time.
Sales of these new systems had already been very strong pre-pandemic and management feels they are really in the sweet spot right now and they have “only scratched the tip of the iceberg” with them.
InMode is emphasizing a post-COVID-19 world in its research and marketing efforts which continue at full speed. These platforms generally cost in the $120,000 to $130,000 range but have a payback that usually averages just 6 to 12 months!
The company has hiring laid off reps from other competitors; conducting over 50 webinars (to surprisingly high interest during the pandemic); developing virtual training videos for physicians (and sales reps) to see how to use its devices and the results.
InMode is in an extraordinarily strong financial position to easily weather this storm and prosper on pent-up demand and new products on the other side. I rate the stock a "Strong Buy".
