HORSHAM, PA — STRATA Skin Sciences, Inc. (NASDAQ: SSKN) announced new progress in its litigation against LaserOptek America Corp., LaserOptek Co. Ltd. of Korea, and affiliated distributors, reinforcing its position in the U.S. dermatology device market and its efforts to protect excimer laser technology from misleading advertising.
In November 2024, the U.S. District Court for the Eastern District of Pennsylvania partially granted STRATA’s motion for preliminary injunction, prohibiting LaserOptek and The Pinnacle Health Group from marketing or selling Pallas laser systems in ways that suggest treatments are reimbursable under CPT codes 96920–96922. The court also barred false or misleading statements about STRATA’s excimer laser systems or competitors’ devices.
In a later ruling, the court added LaserOptek Korea as a defendant, citing attempts to obscure its involvement, thereby broadening STRATA’s ability to pursue claims of false advertising and unfair competition under the Lanham Act.
“The Court’s decision affirms our commitment to protect both our clinical partners and patients from misleading claims,” said Dr. Dolev Rafaeli, STRATA’s President and CEO. “By exposing the deceptive tactics used to promote non-excimer lasers under CPT codes reserved for excimer technology, and offering a technology that has no known independent, peer-reviewed clinical validation for the treatment of Psoriasis, or (for that matter) any other inflammatory and autoimmune skin condition whether in or outside the U.S., we are defending not only our business but the ethical and medical standards of the dermatology community. We are happy to report that many dermatology accounts that were deceived with these false advertising claims are now XTRAC excimer laser users leading to our ability to retain and enhance our market share.”
Reclaiming Market Share
In recent months, STRATA has regained customers and strengthened relationships with dermatology clinics that had been misled by claims regarding the Pallas solid-state laser’s reimbursement eligibility. The company reports that more than 20 former LaserOptek clients have joined its XTRAC partnership program or purchased XTRAC excimer lasers, contributing over $1 million in annualized capital and recurring revenue.
The XTRAC® Excimer Laser remains the leading technology for targeted UVB therapy in autoimmune skin conditions such as psoriasis and vitiligo. STRATA currently works with 844 of the 1,200 U.S. dermatology clinics using excimer laser therapy, including 358 clinics owned by 43 private equity-backed national accounts.
Growth Through CPT Expansion
STRATA’s position is further strengthened by a May 2025 decision from the American Medical Association’s CPT Editorial Panel, which reaffirmed the exclusive use of excimer lasers under CPT codes 96920–96922 through January 1, 2027. These codes will be expanded to include up to 30 dermatologic conditions, potentially quadrupling the eligible patient population.
“The CPT expansion marks a major growth inflection point for STRATA and our 844 partner clinics, as well as all other users of the excimer lasers,” Dr. Rafaeli said. “We intend to aggressively defend our market share and ensure that the upcoming inclusion of 30 new indications translates into expanded access for patients and sustainable revenue for our partners, as we will be working with CMS and private payers alike to update their coverage policies.”
Upholding Ethical Standards
STRATA stated that it remains committed to defending the ethical use of clinically validated excimer laser technology and to holding competitors accountable for false or misleading claims.
“The defendants’ actions caused both monetary and reputational damage to STRATA,” Dr. Rafaeli added. “We will pursue every avenue to hold them accountable while continuing to strengthen our network and safeguard the ethical use of clinically backed excimer laser technology and based on our vast clinical foundation and valuable suite of service we offer our partners, are confident in our ability to bring back any provider that was misled.”
With its legal position reinforced and its clinical partnerships expanding, STRATA Skin Sciences appears poised to consolidate its leadership in excimer laser therapy as the industry adapts to broader clinical indications and a growing emphasis on evidence-based dermatologic care.
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