Too Cool for Its Own Good
This cutting edge company has carved out a niche for itself, but it doesn't seem like its cool idea is helping heat up the stocks, notes Doug Casey in Casey Extraordinary Technology.
Zeltiq Aesthetics (ZLTQ) was founded to develop and commercialize a noninvasive product for the selective reduction of fat. The company’s first product, the CoolSculpting System, does just that.
CoolSculpting targets and cools fat cells to temperatures that trigger their natural death. Because lipids crystallize faster than normal cells, there is no damage to nerves or other tissue.
Over the next few weeks and months, the fat cells shrink and begin to die as the patient’s own body metabolizes them and naturally eliminates them. The overall fat layer is reduced, which results in a noticeable and measureable reduction in the fat bulge around the targeted flank—an area commonly referred to as the “love handles.”
The procedure costs about $1,500 for the patient, only takes about an hour, and is virtually painless. It’s completely noninvasive and doesn’t even require a local anesthetic. After the treatment, there is no downtime, and patients can usually go back to work the same day.
CoolSculpting is FDA approved for the selective reduction of fat around the flanks, as well as for the treatment of “belly fat,” or nonsurgical reduction of fat in the abdominal area. The company has also received regulatory approval or is otherwise free to market CoolSculpting in 53 international markets, where use of the product is generally not limited to specific areas.
During the 12-month period ending June 30, the company grew its installed base by 100% to 1,257 CoolSculpting systems.