LCA-Vision Inc. (NASDAQ:LCAV) Merger With PhotoMedex Faces Stiff Opposition From Activist Investors


Dallas, Texas 02/20/2014 (FINANCIALSTRENDS) – The $106 million market capped medical practice firm LCA-Vision Inc. (NASDAQ:LCAV) has been at the receiving end of a host of legal investigations on the back of its 13th February announcement that it has agreed to be bought out by PhotoMedex for all cash deal worth $106 Million.

The selling price indicates the price of per share of LCA-Vision Inc.(NASDAQ:LCAV) which had accumulated net loss of $5 million from operations in the past 12 months had been valued at $5.37 per share. The valuation provided by the purchaser represented a 26 percent premium on $4.25 per share price of LCA-Vision Inc. (NASDAQ:LCAV) which prevailed at the time of announcement on 13th February.

The acquisition will create a bio tech firm which offers cures for skin, health and wellness for its customers based across the globe. An immediate impact of the acquisition of LCA-Vision Inc. (NASDAQ:LCAV) would be seen on PhotoMedex product offerings around psoriasis. The bought out firm had developed a proprietary durg “ XTRAC® Excimer Laser” treatment procedure which is designed to treat “psoriasis and vitiligo”. This drug is expected to add a new revenue stream to the PhotoMedex in 2014 itself.

The deal which has got the unanimous buy-in from board members of both companies is facing stiff resistance from the share holders of LCA-Vision Inc. (NASDAQ:LCAV) who are arguing that the current valuation does not reflect the real value of the firm and its future potential as it continues grow its product bucket.

Commenting on the force multiplier impact the deal is going to have on the prospects of PhotoMedex, its CEO Dr. Dolev Rafaeli has been quoted to have said that, “We have a tremendous opportunity to leverage the LasikPlus infrastructure and customer-centric staff, which are the best in the industry yet presently underutilized.”