Biotech Values

[DewDiligence]

PMTI was +53% today on FDA 510(k) approval on an at-home
anti-wrinkle laser! I have no idea what the price will be, where
the device will be sold, or how well it works, but PMTI clearly
benefited from JNJ name-dropping in today’s PR. After today’s
pop, PMTI has a market cap of ~$300M and an EV of ~$200M.
PMTI has had the kind of bumpy earnings history that’s typical
of companies who make aesthetic lasers: it earned $2.62/sh in
2006 (its best year), about half that much in 2007, and it lost
money in 2008.

http://finance.yahoo.com/news/Palomar-Receives-FDA-prnews-15448917.html

›Palomar Receives FDA Over-The-Counter Clearance for a Home Use Wrinkle Removal Laser Device

Friday June 5, 2009, 9:00 am EDT

Clearance Opens Door To Multi-Billion Dollar Home Skin Care Market

BURLINGTON, Mass., June 5 /PRNewswire-FirstCall/ -- Palomar Medical Technologies Inc. (Nasdaq: PMTI ), a leading researcher and developer of light-based systems for cosmetic treatments, today announced that it has become the first company to receive a 510(k) over-the-counter (OTC) clearance from the United States Food and Drug Administration (FDA) for a new, patented, home use, laser device for the treatment of periorbital wrinkles. OTC clearance allows the device to be marketed and sold directly to consumers without a prescription.

This consumer device was developed by Palomar and completed together with Johnson and Johnson Consumer Companies, Inc., under a previously announced agreement to develop light-based anti-aging devices. Designed specifically for use in the home and based on years of research and clinical testing, this consumer device represents a major breakthrough in the aesthetic device industry.

Commenting on the achievement, Palomar Chief Executive Officer Joseph P. Caruso said, "This FDA clearance for a laser to treat wrinkles in the home opens up a tremendous opportunity to tap into the multi-billion dollar consumer skin care market with our patented technology. The professional treatment of fine lines and wrinkles using lasers has been well established and proven to be safe and effective for years in the doctors' office using large and expensive lasers. With this breakthrough, consumers will be able to use similar technology in the privacy of their own home for a fraction of the cost. This latest clearance further validates Palomar's investment in research and development in the field of light-based anti-aging treatments and adds to the list of distinctions for Palomar as a technology leader in our industry."

Mr. Caruso continued, "Years ago, we believed that light-based anti-aging applications could be brought to the home. We invested significant resources in research, development, clinical testing, and patent protection to make this a reality and ensure that Palomar would be the leader with this innovative technology. We envision a strong market for this OTC device and an increase in consumer awareness to help drive growth in our professional business."

About Palomar Medical Technologies Inc.

Palomar is a leading researcher and developer of light-based systems for cosmetic treatments. Palomar pioneered the optical hair removal field, when, in 1997, it introduced the first high-powered laser hair removal system. Since then, many of the major advances in light-based hair removal have been based on Palomar technology. In December 2006, Palomar became the first company to receive a 510(k) over-the-counter (OTC) clearance from the United States Food and Drug Administration (FDA) for a new, patented, home use, light-based hair removal device. OTC clearance allows the product to be marketed and sold directly to consumers without a prescription. There are now millions of light-based cosmetic procedures performed around the world every year in physician offices, clinics, spas and salons. Palomar is testing many new and exciting applications to further advance the hair removal market and other cosmetic applications. Palomar is focused on developing proprietary light-based technology for introduction to the mass markets. Palomar has granted The Procter & Gamble Company a non-exclusive License Agreement to certain patents, technology and FDA documents related to the home-use, light-based hair removal field for women. In addition, Palomar has an exclusive development and license agreement with Johnson & Johnson Consumer Companies, Inc., to develop and potentially commercialize home-use, light-based devices for reducing or reshaping body fat including cellulite, reducing the appearance of skin aging, and reducing or preventing acne. For more information on Palomar and its products, visit Palomar's website at www.palomarmedical.com.‹