Mar 4 2008
Palomar Medical Technologies, Inc., 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 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.