(By Salman - iStockAnalyst Writer)
Palomar Medical Technologies designs, manufactures, markets, and sells lasers and other light-based products, and related disposable items and accessories for use in medical and cosmetic procedures.
The Massachusetts, United States based company
got a major boost after Food and Drug Administration last week approved over-the-counter (OTC) marketing of its laser device for treatment of wrinkles around the eyes. The device, to be sold directly to consumers without a prescription, will be marketed through retail channels by Palomar's partner, Johnson & Johnson Consumer Cos. Inc (NYSE:
JNJ). According to the agreement between the two companies,
Palomar will receive a percentage of worldwide sales of the device and related cosmetic disposables.
It will be the first foray into the consumer market for the Burlington based company, which builds large light-based equipment for cosmetic treatments and sells it to health practitioners.
In recent times, the company has suffered huge revenue declines. The Palomar's total annual sales were only $87.581 million in 2008 compared to $123.819 million in 2007 and $126.544 million in 2006. Analysts currently expect revenue to drop to $61.33 million in 2009. However, the recent development may force analysts to revise their outlook.
Palomar Medical Technologies has also entered into a distribution agreement with Germany based Quantel SA for Quantel's SINON Q-switched ruby laser system for tattoo removal in the United States and Canada.
The company recently launched a more powerful version of the Aspire platform, a laser platform that is focused on body sculpting. The Aspire has unique selectivity which uses a particular wavelength that is highly absorbed in the lipids present in fat cells. This selectivity allows the Aspire to treat the targeted fat cells more effectively and much faster than devices offered by competitors. The Aspire system uses a proprietary one time use delivery system. This per-treatment disposable revenue stream will build over time and is expected to be an important contributor to profits with a large installed base.
The company is also benefiting from its efforts in developing distribution outside the US. Approximately 55% of its products and service revenue during the first quarter of this year were generated from outside the US.
Over the past few years, the company has established itself as a major player in the optical cosmetic treatment market.
