Johnson and Johnson Cancels Contract with Palomar – Unfavorable Economic Conditions Stated For A Massive Product Launch
Posted Oct 16 2009 10:01pm
Palomar is going ahead on their own to bring the anti wrinkle consumer device to market. As you can see from a prior post below, the product is a home use patented FDA approved laser device for removing wrinkles and more. Palomar agreed that current economic conditions didn’t warrant a huge product launch with the additional required revenue so they have developed their own plan that will follow launching on a smaller scale. According to the article, the product should launch some time next year. BD
“In looking over the site and the multitude of products, this appears to be the first available directly for consumers. The screenshot below is onefrom the site and may not represent the results of the exact product approved. If you view the website, they have products for just about every type of skin repair, enhancing procedures, hair and tattoo removal you could think of and from what I can tell, the focus has been primarily for the clinical side with marketing to physicians to include plastic surgeons and dermatologists. As far as the exact product approved from the FDA, I guess we will have to wait to find out more information and when it will be available to the consumer.”
BURLINGTON, Mass., Oct. 16 /PRNewswire-FirstCall/ -- Palomar Medical Technologies Inc. (Nasdaq: PMTI), a leading researcher and developer of light-based systems for cosmetic treatments, today announced the termination of its agreement with Johnson & Johnson Consumer Companies Inc ("JJCC"), a Johnson & Johnson company, to develop, clinically test and commercialize home-use, light-based devices for (i) reducing or reshaping body fat including cellulite; (ii) reducing appearance of skin aging; and (iii) reducing or preventing acne. Despite Palomar having met all of its deliverables under the agreement, JJCC terminated the agreement referencing the current unfavorable economic conditions as the reason for its decision. With this decision, JJCC avoids having to make a large commercialization payment to Palomar and avoids having to commit to the significant level of funding required to successfully launch a new product into the mass market. Upon termination of the agreement, JJCC's license to Palomar technology was terminated and all technology and intellectual property rights related to light-based devices developed under the agreement were assigned to Palomar. JJCC is also precluded from further development or commercialization of the light-based devices developed under the agreement.