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Divine Skin (DSKX) Launches Health-Care Division To Develop New OTC and Prescription Drugs

MIAMI BEACH, Fla., July 6 /PRNewswire-FirstCall/ -- Biotechnology pioneer Divine Skin Inc. (OTC Bulletin Board: DSKX) has announced plans to launch a consumer health-care division to capitalize on the pharmaceutical research it has conducted during the successful development of topical treatments for hair and skin. The new division will target both over-the-counter and prescription drug sectors.

In recent years, the company's extensive research into hair loss and other common skin conditions has resulted in high-performance topical solutions for men and women. These include effective therapies to restore growth and radiance to hair, suppress dandruff and unwanted hair, control acne, support feminine hygiene, and reduce the appearance of facial aging.

"Divine Skin brands have been built on a platform of technological innovation," said founder and CEO Daniel Khesin in making the announcement. "So innovative health care is an organic extension of the company's principal activity."

Khesin said the core principle of Divine Skin has always been to treat skin and scalp conditions through multiple pathways, unlike competitors that are focused narrowly. As an example, he cites the Spectral.DNC line of topical formulas for male pattern baldness, which compete head-to-head against the Rogaine brand.

"This multivariate approach has proven to be a remarkably successful paradigm for Divine Skin. It has made us a pioneer in our field," said Khesin. "The same strategy will lead us toward innovations in the OTC and prescription categories as well, resulting in more effective therapies while reducing biological toxicity."

Khesin claimed particular expertise at commercializing discoveries into viable consumer products, with rapid prototyping and clinical testing at low cost. "Most of our research and development leads directly to revenue-generating products that make a meaningful difference in the lives of customers," he said.

"This is an important capability that sets us apart from many of our competitors. It puts Divine Skin at the forefront of biotechnical research. It offers unique growth and value to both customers and shareholders."

Growth and value have characterized the company, whose annual revenue was up 27 percent in 2009, the year it went public. Zacks Investment Research forecasts net revenue of at least $15 million for 2010 and $23 million for 2011, based on organic growth and new deals now in the pipeline.

Last month Divine Skin announced a new agreement for its DS Laboratories brand to supply hair-growth products through Premier Salons, one of North America's largest chains, with about 3,000 locations, many in prestigious department stores like Macy's. The manufacturer estimates the deal to be worth $10.8 million per year once the entire retail chain is supplied.

Earlier in the year, Divine Skin announced a similar agreement with Fantastic Sams, a chain of roughly 2,000 salons, anticipated to be worth $7.2 million per year when fully implemented.

At its current rate, Divine Skin expects to add 10,000 salon outlets during 2010. To optimize revenue, the company has been establishing sales and education teams based in California, Florida, New Jersey, and New York. Worldwide, Divine Skin distributes throughout the Americas (Canada, Mexico, Brazil), Europe (United Kingdom, France, Germany, Russia, Turkey), and Japan.

About Divine Skin

Divine Skin Inc. develops, markets, and distributes personal-care products through cosmetics wholesalers, online retailers, specialty outlets, spas, salons, and medical offices in more than 20 countries. Its brands include DS Laboratories, Sigma Skin, and Polaris Research.

DS Laboratories, the flagship brand, offers high-performance topical solutions for men and women to restore growth and radiance to hair; suppress dandruff and unwanted hair; control acne; maintain feminine hygiene; and reduce the appearance of cellulite, wrinkles, and double chins (

The Sigma Skin brand targets men and sells through upscale retailers like Bergdorf Goodman in the United States, Saks Fifth Avenue in Mexico, and Harvey Nichols in the United Kingdom. Products are designed to reverse hair loss and other signs of aging (

Polaris Research makes high-potency minoxidil-based hair-growth formulas (

Divine Skin's management believes the company has established itself as a leader in topical therapies, especially hair-growth, through aggressive pursuit of innovation and technology. Products employ comprehensive formulas with multiple methods of action against common skin conditions. Many utilize proprietary encapsulation techniques for improved bioavailability.

SOURCE Divine Skin Inc.
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