BURLINGTON, Mass., Dec. 21 /PRNewswire/ -- Palomar Medical
Technologies, Inc. (Nasdaq: PMTI), a leading researcher and developer of
light-based systems for cosmetic treatments, today announced an agreement
with The Gillette Company (a wholly owned subsidiary of The Procter and
Gamble Company (NYSE: PG)) to extend the Launch Decision of a home-use,
light-based hair removal device for women until no later than February 29,
2008. Under the existing Development and License Agreement entered into by
Palomar and Gillette on February 14, 2003 and as Amended and Restated on
February 14, 2007, Gillette had until January 7, 2008 to make the Launch
Decision. During this extension period, Palomar and Gillette have agreed to
enter into negotiations for a new agreement to replace the existing one.
The goal of a new agreement would be to enable the parties to continue to
work together to fully capitalize on the market potential. Although no
assurances can be given as to the outcome of these negotiations, it is
anticipated that a new agreement would include the release of Palomar from
exclusivity and the retention by Gillette of non-exclusive rights to
Palomar's technology and intellectual property. In return for a release
from exclusivity, Palomar anticipates that there would be a reduction in
the percentage of net sales that Gillette pays to Palomar and a change from
annual payments under the existing agreement to reduced calendar quarterly
payments for a certain period. There can be no assurances that Palomar and
Gillette will reach a new definitive agreement, or that an agreement, if
reached, will contain the terms currently under negotiation. If the parties
do not agree, the existing agreement could be terminated.
Designed specifically for use in the home and based on over a decade of
research, the consumer light based hair removal device represents a major
breakthrough in the aesthetic device industry and is the first light-based
hair removal device to receive a 510(k) over-the-counter (OTC) clearance
from the United States Food and Drug Administration (FDA). OTC clearance
allows the device to be marketed and sold directly to consumers without a
prescription. Gillette and Palomar have conducted over 11 clinical studies
with over 600 subjects (and thousands of treatments) which demonstrate
that, when used as directed, the light based device delivers comfortable,
effective, skin-safe hair removal.
Chip Bergh, P&G Group President said: "We are encouraged with the
progress that has been made over the past years in working together. We are
hopeful that we can reach mutually-agreeable terms as we renegotiate the
agreement so that we can continue to work together to bring this promising
technology to the consumer, in-home market."
Commenting on this development, Palomar Chief Executive Officer Joseph
P. Caruso said, "Together with Gillette we have developed game changing
technology with the potential for a tremendous impact on women's every day
lives. We are looking forward to advancing this technology into the
consumer market with a strategy designed to increase consumer awareness."
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 above- noted agreement with Gillette, 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 (including future tax
benefit from the Company's NOLs and future effective tax rates). 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
 back to top
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
|
