BURLINGTON, Mass., Sept. 29 /PRNewswire-FirstCall/ -- Palomar Medical Technologies, Inc. (Nasdaq: PMTI - News), a leading researcher and developer of light-based systems for cosmetic treatments, today announced that it will move forward to the next phase with The Gillette Company, part of The Procter & Gamble Company (NYSE: PG - News), under the Development and License Agreement executed by Palomar and Gillette in February 2003. With this decision, the development of a new, patented, home use, light-based hair removal device for women moves into the next phase.
Commenting on the achievement, Palomar Chief Executive Officer Joseph P. Caruso said, “After three years of successful development, we are extremely pleased to receive this decision from Gillette. This is a significant milestone in our agreement with Gillette and is in line with our targeted timeframe. 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 both the first to the marketplace and the leader with this innovative technology. Our relationship with Gillette provides us with the world class manufacturing, marketing, and distribution expertise to address this high-potential market. We are fortunate to have developed this technology in close cooperation with Gillette.”
Within thirty days of Palomar receiving a 510(k) over-the-counter (OTC) clearance from the United States Food and Drug Administration (FDA), Gillette will make a development completion payment to Palomar of $2.5 million. OTC clearance allows products to be marketed and sold directly to consumers without a prescription in the United States.
For more information, please see the Development and License Agreement filed as Exhibit 10-1 to a Current Report on Form 8-K filed February 19, 2003.
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. 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 uniquely focused on developing proprietary light-based technology for introduction to the mass markets. Palomar has an agreement with The Gillette Company to develop and potentially commercialize a patented home-use, light-based hair removal device for women. 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, and was awarded a contract by the Department of the Army to develop a light-based, self- treatment device for Pseudofolliculitis Barbae (“PFB”).
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, development and introduction of new products, and financial projections that 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, 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, 2005 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.
