BURLINGTON, Mass., March 3 /PRNewswire-FirstCall/ -- Palomar Medical
Technologies, Inc. (Nasdaq: PMTI), a leading researcher and developer of
light-based systems for cosmetic treatments, today announced that it has
entered into a non-exclusive License Agreement with The Procter & Gamble
Company (NYSE: PG) to exploit home-use light-based hair removal devices for
women. This new agreement replaces the Development and License Agreement
entered into by Palomar and The Gillette Company, (a wholly owned
subsidiary of P&G) on February 14, 2003, as Amended and Restated on
February 14, 2007, and as further amended thereafter. Under this new
agreement, P&G retains a non-exclusive license to Palomar's broad patent
portfolio as well as a non- exclusive license to the extensive technology
developed by Palomar before and during the five year term of the prior
agreement. Prior to launching a commercial product, P&G will pay Palomar
$1.25 million per calendar quarter. Following commercial launch P&G will
pay Palomar per product sales under a confidential financial arrangement
which addresses both the patents and technology which are licensed.
During the term of the prior Development and License Agreement, a home-
use, light-based hair removal device for women was developed by Palomar
together with Gillette. It is the first light-based aesthetic device to
receive a 510(k) over-the-counter (OTC) clearance from the United States
Food and Drug Administration (FDA). OTC clearance allows the product to be
marketed and sold directly to consumers without a prescription. Designed
specifically for use in the home and based on over a decade of research,
this consumer device represents a major breakthrough in the aesthetic
device industry.
In order to achieve FDA clearance, numerous clinical studies with over
600 subjects and thousands of treatments were conducted. These studies
demonstrated that, when used as directed, the light-based device created
under this agreement delivers comfortable, effective, skin-safe hair
removal.
Stephanie Connaughton, Marketing Director, Global Grooming, said: "We
are pleased that we were able to find a win-win outcome that enables
continued work on this promising technology and increases the likelihood of
commercial success."
Commenting on this development, Palomar Chief Executive Officer Joseph
P. Caruso said, "We strongly believe that we have developed game changing
technology, and we look forward to seeing P&G's products on the market.
Over the past five years, Palomar and Gillette worked together to advance
the technology and we have made tremendous progress in moving closer to
penetrating the mass consumer market. Our biggest single achievement
together has been penetrating the regulatory barrier to gain FDA approval
of the first laser device for the home market."
For more information, please see the non-exclusive License Agreement
filed as Exhibit 10.1 to a Current Report on Form 8-K filed today, the
Amended and Restated Development and License Agreement and Amendment #1 to
the Amended and Restated Development and License Agreement filed as
Exhibits 10.1 and 10.2 to a Current Report on Form 8-K filed February 21,
2007 and Amendment #2 to the Amended and Restated Development and License
Agreement filed as Exhibit 10.1 to a current Report on Form 8-K filed
December 21, 2007.
About Palomar Medical Technologies Inc: Palomar is a leading researcher
and developer of light-based systems for cosmetic treatments. Palomar
pioneered the optical hair removal field, when, in 1997, it introduced the
first high-powered laser hair removal system. Since then, many of the major
advances in light-based hair removal have been based on Palomar technology.
In December 2006, Palomar became the first company to receive a 510(k)
over-the- counter (OTC) clearance from the United States Food and Drug
Administration (FDA) for a new, patented, home use, light-based hair
removal device. OTC clearance allows the product to be marketed and sold
directly to consumers without a prescription. There are now millions of
light-based cosmetic procedures performed around the world every year in
physician offices, clinics, spas and salons. Palomar is testing many new
and exciting applications to further advance the hair removal market and
other cosmetic applications. Palomar is focused on developing proprietary
light-based technology for introduction to the mass markets. In addition to
the non- exclusive License Agreement with P&G, Palomar also has an
agreement with Johnson & Johnson Consumer Companies to develop and
potentially commercialize home-use, light-based devices for reducing or
reshaping body fat including cellulite, reducing the appearance of skin
aging, and reducing or preventing acne.
For more information on Palomar and its products, visit Palomar's
website at http://www.palomarmedical.com. To continue receiving the most
up-to-date information and latest news on Palomar as it happens, sign up to
receive automatic e-mail alerts by going to the Investor Relations' section
of the website.
With the exception of the historical information contained in this
release, the matters described herein contain forward-looking statements,
including but not limited to statements relating to new markets, future
royalty amounts due from third parties, development and introduction of new
products, and financial and operating projections. These forward-looking
statements are neither promises nor guarantees, but involve risk and
uncertainties that may individually or mutually impact the matters herein,
and cause actual results, events and performance to differ materially from
such forward-looking statements. These risk factors include, but are not
limited to, results of future operations, technological difficulties in
developing or introducing new products, the results of future research,
lack of product demand and market acceptance for current and future
products, the effect of economic conditions, challenges in managing joint
ventures and research with third parties and government contracts, the
impact of competitive products and pricing, governmental regulations with
respect to medical devices, including whether FDA clearance will be
obtained for future products and additional applications, the results of
litigation, difficulties in collecting royalties, potential infringement of
third-party intellectual property rights, factors affecting the Company's
future income and resulting ability to utilize its NOLs, and/or other
factors, which are detailed from time to time in the Company's SEC reports,
including the report on Form 10-K for the year ended December 31, 2006 and
the Company's quarterly reports on Form 10-Q. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only
as of the date hereof. The Company undertakes no obligation to release
publicly the result of any revisions to these forward-looking statements
that may be made to reflect events or circumstances after the date hereof
or to reflect the occurrence of unanticipated events.
Contacts: Kayla Castle
Investor Relations Manager
Palomar Medical Technologies, Inc.
781-993-2411
ir@palomarmedical.com
SOURCE Palomar Medical Technologies, Inc.
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Related links:
http://www.palomarmedical.com
http://www.prnewswire.com/comp/107555.html /
CONTACT:
Kayla Castle, Investor Relations Manager of
Palomar Medical Technologies, Inc., +1-781-993-2411,
ir@palomarmedical.com
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