BURLINGTON, Mass., Dec. 20 /PRNewswire-FirstCall/ -- Palomar Medical Technologies, Inc. , a leading researcher and developer of light-based systems for cosmetic treatments, announced today that yesterday Candela Corporation filed a responsive patent infringement lawsuit against Palomar in the Eastern District of Texas, Lufkin Division. The complaint alleges that Palomar's LuxY and Lux1540 handpieces for use with the StarLux Laser and Pulsed Light System willfully infringe United States Patent Nos. 5,810,801, 6,659,999 and 6,120,497. Palomar will vigorously defend against this action, as Palomar believes its products do not infringe these patents and that these patents are invalid over prior art.
Patricia Davis, Senior Vice President and General Counsel of Palomar, commented, "This is a defensive maneuver on Candela's part and one that is not unexpected. This is not the first time that Candela has threatened Palomar with these patents. Candela asserted the 6,659,999 patent in an earlier lawsuit in Massachusetts against Palomar. However, Candela dropped the patent from that lawsuit presumably after they realized that the accused product, Palomar's LuxG handpiece for use on the StarLux System, did not infringe that patent."
Ms. Davis continued, "On August 9, 2006, Palomar filed a lawsuit against Candela in Massachusetts accusing Candela's light-based hair removal systems, including the GentleLase and GentleYag Systems, of infringing U.S. Patent No. 5,735,844 ("the '844 Patent"). We believe both Candela's latest lawsuit and the earlier lawsuit are in response to Palomar's August 9th lawsuit. Because Candela has been selling the accused products for many years, if Palomar is successful in its lawsuit, Candela could be ordered to pay tens of millions of dollars in damages for prior sales. In addition, since Candela received formal notice letters from Palomar regarding the '844 Patent since 1999, Candela may be found to have willfully infringed this patent and may be ordered to pay up to triple the original damages. Importantly, if Palomar is successful in seeking an injunction, Candela would be ordered to stop selling its infringing products. Palomar's lawsuit against Candela has recently been transferred to the same Judge that presided over Palomar's lawsuit against Cutera."
Joseph P. Caruso, President and Chief Executive Officer of Palomar, commented, "Palomar's lawsuit against Candela is part of our on-going patent enforcement strategy. The patents Palomar has asserted against Candela include the same patents that Palomar has successfully asserted against others with the same technology. We have received approximately $60 million to date from these efforts and intend to continue with this successful strategy."
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. On December 8, 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 uniquely focused on developing proprietary light- based technology for introduction to the mass markets. Palomar has an agreement with The Gillette Company to develop and potentially commercialize a patented home-use, light-based hair removal device for women. Palomar also has an agreement with Johnson & Johnson Consumer Companies 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, and was awarded a contract by the Department of the Army to develop a light-based, self-treatment device for Pseudofolliculitis Barbae ("PFB").
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With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements, including but not limited to statements relating to new markets, development and introduction of new products, and financial projections that involve risk and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially from such forward-looking statements. These risk factors include, but are not limited to, results of future operations, technological difficulties in developing or introducing new products, the results of future research, lack of product demand and market acceptance for current and future products, the effect of economic conditions, challenges in managing joint ventures and research with third parties and government contracts, the impact of competitive products and pricing, governmental regulations with respect to medical devices, including whether FDA clearance will be obtained for future products and additional applications, the results of litigation, difficulties in collecting royalties, potential infringement of third-party intellectual property rights, and/or other factors, which are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended December 31, 2005 and the Company's quarterly reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward- looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contacts: Kayla Castle
Investor Relations Manager
Palomar Medical Technologies, Inc.
781-993-2411