Monday, March 3, 2008

Palomar cuts a new hair-removal tech deal with P&G

Palomar Medical Technologies Inc., a maker of light-based systems for cosmetic treatments, has amended a licensing deal for a hair-removal product it has with the Procter & Gamble Co.

P&G has agreed to pay Palomar $1.25 million per quarter until the product is launched, followed by a deal based on the product's sales.

Burlington-based Palomar (Nasdaq: PMTI) said it reached the initial agreement in February 2003 with the Gillette Co., which was then acquired for $55 billion in 2005 by consumer products giant P&G, based in Cincinatti.

The deal was for Palomar to develop a home hair-removal product for women and license it to Gillette. Under the new agreement, Palomar has granted P&G nonexclusive licences to its patent portfolio and its technology for home hair removal.

After the product launch, P&G will pay Palomar an undisclosed amount based on sales. The U.S. Food and Drug Administration has cleared the product for the home market, according to Palomar.

Palomar reported a 2007 profit of $20.5 million, with revenue of $123.8 million. The firm employs 225 workers.