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For the exclusive use of R. van Munster, 2015. 9-808-064 REV: OCTOBER 21, 2010 PRICHARD G. HAMERMESH LAUREN BARLEY DeermaCa are: Zap pping Zits Z Dirrectly It was w a rainy Saturday S morrning in late November N 20005, and Peteer Scocimara pulled p on hiss Croc shoes to take his rambunctiou us golden rettriever Jasperr for a walk. Walking thee dog would d give Scocim mara some much-needed m time to clearr his head an nd prepare fo or a Monday y-morning meeeting with the cofounders of his co ompany, DerrmaCare, Incc. Headquarteered in Liveermore, California, Derm maCare was a start-up ven nture that plaanned to marrket its Therm maClear acnee-treatment device d directtly to consum mers using direect response television t (DR RTV).…show more content…
There were many forms of acne, ranging from blackheads, whiteheads, and pimples to severe forms such as cystic or modular acne. Da Silva, whose scientific background was with lasers, had seen dermatologists use laser technologies in the treatment of mild to moderate inflammatory acne, most commonly referred to as “pimples,” “breakouts,” “blemishes,” or “zits.” Choi summarized the science behind the laser treatments: Lasers treat acne in two possible ways. At certain wavelengths—or colors—lasers go into the skin tissue and generate oxygen radicals, which kill the bacteria and reduce inflammation. At other wavelengths, lasers are basically heat sources that reduce sebum [an oily substance produced by certain skin glands] production by killing and reducing the number of sebaceous glands. This decreases the likelihood that excess sebum clogs pores, which can lead to acne. 2 This document is authorized for use only by Rachel van Munster in Entrepreneurial Law and Finance taught by Rafael P. Ribas, at HE OTHER from February 2015 to March 2015. For the exclusive use of R. van Munster, 2015. DermaCare: Zapping Zits Directly 808-064 However, a laser was an expensive solution for treating acne. Da Silva and Choi believed they could replace a laser, which cost between $20,000 and $50,000, with a $5 to $10 heater using a thinfilm resistor (a thin piece of metal that converts electrical current into

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