(RTTNews) -  Friday, Palomar Medical Technologies Inc. (PMTI: News ) said it will go ahead with the commercialization of its FDA-cleared home-use laser device for treatment of periorbital wrinkles, despite the termination of its commercialization agreement with Johnson & Johnson (JNJ: News ). Palomar said it plans to launch the products during the second half of next year.

The Burlington, Massachusetts-based researcher and developer of light-based systems for cosmetic treatments had signed an agreement with Johnson & Johnson Consumer Companies Inc, a subsidiary of Johnson & Johnson, in September 2004 to develop, clinically test, and commercialize home-use, light-based devices for reducing or reshaping body fat including cellulite, reducing appearance of skin aging, and reducing or preventing acne.

Johnson & Johnson Consumer Companies, or JJCC, terminated the agreement referring to the current unfavorable economic conditions despite Palomar having met all of its deliverables under the agreement, a statement from Palomar said.

With the agreement cancellation, JJCC avoids having to make a large commercialization payment to Palomar and avoids having to commit to the significant level of funding required to successfully launch a new product into the mass market, the statement said.

Palomar received 510(k) over-the-counter clearance from the U.S. Food and Drug Administration for the laser device for treatment of periorbital wrinkles in June 2009.
Commenting on the future plans, Joseph Caruso, chief executive officer of Palomar, said, "Wrinkle treatments using OTC products are a multi-billion dollar market opportunity and we plan on entering that market with our products during the second half of next year. The current economic climate does not warrant a large scale investment in a mass market launch at this time. Therefore, we have adjusted our launch plans to be more in line with current economic conditions. In the short-term, our goal is to establish our consumer products in the market using certain specialty channels and gather the valuable information needed to fully execute our long-term strategy of a full mass market launch.

Further, Caruso added that company's long-term goal remains the same - to tap into the mass market using its patented technology in a number of key areas with multiple product offerings and multiple channels worldwide.

Following the termination of the agreement, JJCC's license to Palomar technology was terminated and all technology and intellectual property rights related to light-based devices developed under the agreement are now assigned to Palomar. JJCC is also precluded from further development or commercialization of the light-based devices developed under the agreement, the press note said.

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