Research Question: Can Zeltiq Aesthetics’ CoolSculpting system continue to fend off competitors with similar or superior body contouring products?
Report Available: January 15, 2016
Blueshift’s initial research shows ZLTQ investing heavily in sales and marketing, with strong sales results from its CoolSculpting body contouring system. Competing products are coming on strong and some appear to be more effective, yet ZTLQ’s superior marketing has set the company apart so far.
- ZLTQ reported $61 million in sales for its Q3, a 34% increase over the previous year. Over half of itsrevenue was derived from consumables and the company is expanding its CoolSculpting applications, receiving recent FDA approval for use on the chin. Wall Street was expecting an earnings deficit, however the company reported $.05 per share. Overall, the body contouring market could soon reach $4 billion.
- Competitor CYNO’s new SculpSure uses laser technology to melt away 25% of targeted fat cells in a 25-minute session and was approved by the FDA for marketing in July. The session length is 50% shorter than a ZLTQ CoolSculpting session, covers a larger surface area, and requires no massaging of fat cells afterward. Physicians have stated that SculpSure systems are just now showing up at offices across the country, with one claiming 50 were shipped to California. Another competing product, Vanquish, provides a less painful treatment and can allegedly remove up to 59% of fat per treatment versus CoolSculpting’s 22% of fat.
- ZLTQ still has a huge leg up in the market; SculpSure is relatively unknown. Views of recently uploaded SculpSure demonstrations on YouTube typically have 200 to 800 views each, whereas CoolSculpting demonstrations have over 10,000 views each. Some are claiming SculpSure is more painful than CoolSculpting, however CYNO claims the opposite is true. Comparing several before and after pictures of SculpSure vs. CoolSculpting shows CoolSculpting producing slightly better results at the six week mark. Another major ZLTQ competitor, ELOS’s UltraShape, has not been gaining nearly as much traction as CoolSculpting even though it has a much higher reviewer rating.
- The majority of sources in Blueshift’s Feb. 17 report found that ZLTQ’s CoolSculpting system and treatment sales would grow; that the procedure was not just a fad. ZLTQ was praised for its highly effective marketing. A few sources shared concerns of saturation in some markets.
Is ZLTQ’s CoolSculpting system considered best of breed? Are any new or existing treatments taking share from CoolSculpting? To gain insight into ZLTQ and the body contouring market, Blueshift will gather data and issue a market research report from independent sources in the following areas: Medical professionals, Competitors/Medical device sales people, and Industry specialists.
Companies: Zeltiq Aesthetics (ZLTQ), Cynosure (CYNO), Syneron Medical (ELOS), Cutera (CUTR), Lumenis (LMNS), Valeant (VRX)