BURLINGTON, Mass., March 3 /PRNewswire-FirstCall/ -- Palomar Medical
Technologies, Inc. (Nasdaq: PMTI), a leading researcher and developer of
light-based systems for cosmetic treatments, earlier 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. Under this new agreement, P&G retains a non-exclusive
license in the female market 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 a prior agreement Palomar had with
P&G's wholly owned subsidiary The Gillette Company. Palomar retains
non-exclusive rights to the female market and exclusive rights to the male
market.
Palomar's light-based consumer device results in the same look and feel
as professional laser hair removal. After multiple uses of the light-based
consumer device over several weeks, hair stops growing. Treating hair once
every two to three weeks after that keeps the hair from re-growing. In
addition to providing long lasting hair removal, this technology was also
proven to eliminate cuts and bruising that can occur with traditional
shaving methods. It is anticipated that the final device could be sold to
consumers for a few hundred dollars and would include a disposable revenue
stream.
Commenting on this development, Palomar Chief Executive Officer Joseph
P. Caruso said, "This recent development allows us to investigate new
distribution strategies with the benefit of having completed substantial
development over the past 5 years. One distribution strategy we will
consider is initiating discussions with other strategic partners. This
technology could revolutionize the standard of home hair management for
women, a $10 billion per year category. Professional light-based hair
removal treatments are among the most popular cosmetic treatments offered
today with millions of treatments performed each year. However, years ago,
we recognized that if light-based hair removal could be brought into the
home, the market opportunity would be vastly larger and would further
increase professional system sales by increasing consumer awareness. With
that in mind, we invested significant resources in research, development
and patent protection to make this a reality and ensure that Palomar would
be the leader with this innovative technology. We look forward to
continuing this strategy."
Caruso continued, "When we first started working with Gillette in 2003,
we had a unique concept and had performed clinical tests to confirm proof
of principle. While working with Gillette, we were successful in developing
prototypes that were tested on hundreds of subjects, we collected data on
consumer preferences that will be important in our final product, we
developed low cost manufacturing strategies and we advanced our technology
from one product to multiple product offerings. Our intellectual property
position has also been advanced by adding unique technology to our
portfolio that will strengthen and extend our proprietary position."
The description above is qualified in its entirety by reference to the
License Agreement, copies of which are attached to a Current Report on Form
8-K as Exhibit 10.1 and incorporated by reference.
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 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: Paul Weiner
Chief Financial Officer
Palomar Medical Technologies, Inc.
781-993-2420
pweiner@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:
Paul Weiner, Chief Financial Officer of
Palomar Medical Technologies, Inc., +1-781-993-2420,
pweiner@palomarmedical.com
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