Palomar Medical Technologies, Inc., a researcher and developer of light-based systems for cosmetic treatments, announced that it has entered into a non-exclusive license agreement with Procter & Gamble to exploit home-use light-based hair removal devices for women. This new agreement replaces the development and license agreement entered into by Palomar and The Gillette Company, (a wholly owned subsidiary of P&G) in 2003.
Under this new agreement, P&G retains a non-exclusive license 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 the prior agreement. Prior to launching a commercial product, P&G will pay Palomar $1.25 million per calendar quarter. Following commercial launch P&G will pay Palomar per product sales under a confidential financial arrangement which addresses both the patents and technology which are licensed.
During the term of the prior development and license agreement, a home- use, light-based hair removal device for women was developed by Palomar together with Gillette. It is the first light-based aesthetic device to receive a 510(k) over-the-counter (OTC) clearance from the United States Food and Drug Administration (FDA). OTC clearance allows the product to be marketed and sold directly to consumers without a prescription.