NEW YORK, Oct. 26, 2020 (GLOBE NEWSWIRE) -- Conversion Labs, Inc. (OTCQB: CVLB) (OTCQB: CVLBD), a direct-to-consumer telemedicine and wellness company, has signed a licensing agreement with Restorsea , a leading medical grade skincare technology platform.
Conversion Labs plans to use Restorsea’s intellectual property and proprietary formulations to create a best-in-class clinical-grade over-the-counter skincare line that will be marketed under the new Nava MD™ brand. The company plans to launch Nava MD in the first quarter of 2021.
Restorsea’s clinically proven skincare technology platform was the result of more than $50 million invested in R&D and intellectual property development over the last several years, and has received 35 patents along with broad industry acclaim .
Restorsea’s breakthrough clinical results have also been published in the peer-reviewed Journal of Drugs in D ermatology and Journal of Cli n ical and Aesthetic Dermatology . Nava MD will be the first and presently the only direct-to-consumer product line outside of Restorsea to offer this advanced skincare technology.
Nava MD will be positioned as an online skincare and teleHealth brand that will offer teledermatology services to patients in all 50 states. Teledermatology represents one of the fastest growing segments of the U.S. telehealth market. According to Fortune Business Insights , the teledermatology market is expected to grow at a 24.3% CAGR to $44.9 billion by 2027.
“As with traditional brick and mortar dermatology, medical-grade over-the-counter products are an integral part of treating aging, dryness, acne, and other prevalent skin conditions,” stated Justin Schreiber, CEO of Conversion Labs. “Given the clinical results and industry acclaim, the Restorsea technology is in a league of its own. Incorporating it into our new direct-to-consumer teledermatology offering represents a major competitive advantage for Conversion Labs.”
According to Restorsea founder and CEO, Patti Pao, who has launched more than 400 products for top brands like Avon, Elizabeth Arden, and Guerlain: “We are thrilled to partner with Conversion Labs for this historic launch of their Nava MD line featuring our advanced skincare technologies. We’re excited that it includes our natural proprietary biocatalyst exfoliator, Aquabeautine XL®.”
Aquabeautine XL® is the only known natural substance that cleaves only dead skin cells, leaving living, healthy cells untouched. It makes skin look radiant, smooth, and even in tone and texture, and without the redness, irritation or thinning skin typically associated with the use of traditional exfoliators.
“Our licensing of the Restorsea technology platform demonstrates our commitment to creating patented and proprietary telemedicine product lines that address large and underserved markets,” commented Conversion Labs CTO, Stefan Galluppi. “The more than $50 million invested in Restorsea’s intellectual property and product development came from a handful of the most sophisticated investors in the U.S. This level of investment is almost unprecedented in the skin care and dermatology world, and it is reflected in the quality and effectiveness of the Restorsea technology. We expect this to translate into great results for our patients and strong customer retention for Conversion Labs.”
The company’s new cloud-based telemedicine platform, Veritas MD ™, is expected to play a large role in the successful rollout of Nava MD, according to Galluppi: “Given the unique capabilities of Veritas MD, we are able to develop, introduce and deliver new products faster and more efficiently than ever before. Veritas MD not only provides incredible operational leverage by supporting greater scale at lower cost, but more importantly, its well-designed video-powered, mobile interface enhances the overall user experience for both patients and doctors.”
According to Forrester Research , telehealth has “shifted into hyper-drive,” with virtual health care consultations on pace to top 1 billion by year end. The overall telemedicine market is expected to grow at 19.3% CAGR, reaching $175.5 billion by 2026.
The teledermatology market has been seeing steady growth over the last few years; however, accelerated investments in healthcare technology and the recent pandemic have worked together to set the industry on a higher growth trajectory. Prior to the pandemic, teledermatology was viewed as generally suitable for most populations, but now it is considered an “absolute necessity” given the greater safety and cost-savings it provides.
Nava MD is Conversion Labs’ fourth telemedicine brand. The success of these brands has been demonstrated by the company’s accelerating growth, with its annualized revenue run-rate currently triple over all of last year at more than $46.8 million.
Conversion Labs’ annual recurring revenue (ARR) from subscriptions increased by $2.2 million or 13% to $19.3 million in September 2020 compared to August. ARR increased by $15.8 million or 458% versus September 2019.
