Palomar, Gillette renegotiate
This article was originally published in The Rose Sheet
Executive Summary
Firms have extended "launch decision" for a home-use, light-based hair removal device for women until no later than Feb. 29, 2008, according to Dec. 21 release. Palomar Medical Technologies says that under the existing development and license agreement - forged in February 2003 and amended and restated in February 2007 - Gillette was to make the launch decision by Jan. 7 (1"The Rose Sheet" Feb. 24, 2003, In Brief). However, companies have entered into negotiations for a new arrangement expected to include "the release of Palomar from exclusivity," in return for which "there would be a reduction in the percentage of net sales that Gillette pays to Palomar and a change from annual payments...to reduced calendar quarterly payments for a certain period," Palomar expects. There are no assurances that a new definitive agreement will be reached, the firm says, noting that the existing agreement could be terminated. L'Oréal also has been drawn to aesthetic devices; in December, the company announced a partnership with Light BioScience to co-develop stimulation devices for reducing wrinkles via light-emitting-diode photomodulation (2"The Rose Sheet" Dec. 17, 2007, In Brief)