Healthcare Industry News: Procter & Gamble
News Release - March 3, 2008
Palomar Seeks to License Additional Companies to Home-Use Light-Based Hair Removal TechnologyBURLINGTON, Mass., March 3 (HSMN NewsFeed) -- 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 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.
Source: Palomar Medical Technologies
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