P&G, Palomar enter agreement for hair removal device
BURLINGTON, Mass. Procter & Gamble and Palomar Medical Technologies, a developer of light-based systems for cosmetic treatments, announced on Monday that they have entered a new license agreement to create an at-home light-based hair removal device for women.
The new agreement replaces an existing contract entered into by P&G and Palomar in February 2003 and amended and restated in February 2007.
Under this new agreement, P&G retains a non-exclusive license to Palomar’s broad patent portfolio as well as a non-exclusive license to the technology developed by Palomar before and during the five-year term of the prior agreement. Before launching a commercial product, P&G will pay Palomar $1.25 million per calendar quarter. Following the commercial launch, P&G will pay Palomar per product sales under a confidential financial arrangement.
During the term of the prior agreement, an at-home light-based hair removal device for women was developed by Palomar together with Gillette. It is the first light-based aesthetic device to receive a 510k OTC clearance from the FDA.
“We strongly believe that we have developed game-changing technology, and we look forward to seeing P&G’s products on the market. Over the past five years, Palomar and Gillette have worked together to advance the technology and we have made tremendous progress in moving closer to penetrating the mass consumer market. Our biggest single achievement together has been penetrating the regulatory barrier to gain FDA approval of the first laser device for the home market,” stated Palomar chief executive officer Joseph Caruso.
Revlon’s 2007 performance best in years
NEW YORK Increased sales, restructuring efforts and cost control helped improve financial performance in 2007, according to Revlon president and chief executive officer David Kennedy.
“We are executing our strategy and our financial results in 2007 were our best in many years. We generated $224.5 million in adjusted EBITDA and our negative free cash flow was $13.8 million,” stated Kennedy.
For full year 2007, sales rose 5.2 percent to $1.4 billion compared with $1.3 billion in the year-ago period. Net sales for the full year 2006 were reduced by $19.7 million from Vital Radiance, the discontinued cosmetics line geared toward women aged 50 and older.
In the United States, sales for the year rose 5.1 percent to $804.2 million, compared with sales of $764.9 million in the year-ago period. Net sales in the United States for full year 2006 were reduced by $20.2 million from Vital Radiance.
Net loss for the year narrowed to $16.1 million, or 3 cents per share, compared with a net loss of $251.3 million, or 60 cents per share, in the year-ago period.
For the fourth quarter, the company swung to a profit. Net income totaled $40.8 million, or 8 cents per share, compared with a net loss of $5.5 million, or 1 cent per share, in the year-ago period. The current fourth quarter included restructuring expenses of $0.4 million. Last year’s quarter was unfavorably impacted by $20.8 million in restructuring and Vital Radiance-related expenses.
For 2008, the company is planning to introduce a new line up of products for Revlon and Almay color cosmetics.
FTC chairman to move to P&G
WASHINGTON Federal Trade Commission chairman Deborah Platt Majoras will become general counsel of Procter & Gamble, the FTC and P&G announced on Thursday.
The vacated position will likely be filled by William Kovacic, one of the two remaining Republicans on the commission, which also has one Democrat and one independent.
Before heading the FTC, Majoras was principal deputy assistant attorney general of the Department of Justice’s Antitrust Division and prior to her government service, was an antitrust partner with law firm Jones Day.
After nearly four years at the FTC, Majoras will begin work on June 1 as P&G’s vice president and general counsel based in Cincinnati, said company spokeswoman Robyn Schroeder.