Palomar Medical Technologies, a Burlington based company, announced yesterday that it has acquired FDA approval for the first laser wrinkle-treatment device that can be used at home without clinical supervision.
Shortly after the news was out, shares of Palomar soared over 50% on Wall Street, possibly showing the huge potential for such a device.
Although much of the details remain under wraps, it is understood that the device will be sold directly to the consumer, without the need for a prescription. Retail marketing of the product will be handled by Johnson & Johnson, a partner of Palomar.
Citing competition in the aesthetic industry, Palomar and Johnson & Johnson have refused to release an image of the device. The introductory price for the device is expected to be in the range of a “few hundred dollars”.
Palomar CEO Joseph Caruso said in a statement that the patented technology of the laser device had the potential to tap into the multi-billion dollar market of consumer skin care.
Paul Weiner, CFO of Palomar clarified that the exact date for the launch of the product has not bee scheduled yet and that under their agreement, Palomar will get a percentage of the global revenue from the sale of the device as well as other related cosmetic products.
Weiner also mentioned that although J&J would be the leading brand in the deal, Palomar hoped to gain some branding mileage out of the device, through a co-branding arrangement.
Interestingly, the laser-device marks Palomar’s maiden venture in the consumer skin care industry. The company’s niche has been clinical cosmetic treatments, where it builds and distributes light-based equipment to health practitioners. Founded in 1991, the company is known for pioneering the laser hair removal system.