BURLINGTON, Mass., Jan. 9 Palomar MedicalTechnologies, Inc. (Nasdaq: PMTI), a leading researcher and developer oflight-based systems for cosmetic treatments, today announced the execution ofan international distribution agreement with the Swedish company Q-MED AB(OMX Nordic Exchange, Stockholm Mid Cap: QMED), a leading biotech/medicaldevice company based in Uppsala, Sweden. Q-MED will eventually be responsiblefor the marketing, advertising, promotion, sale and distribution of Palomar'sprofessional products for aesthetic treatments outside North America. Q-MEDAB is the producer of Restylane, one of the most popular and widelydistributed dermal fillers in the world, with over 9 million treatmentsprovided so far. Q-MED AB sells Restylane globally through a network of fullyowned sales companies, partners and distributors.
The single source availability of Palomar and Q-MED products will providephysicians with a wide variety of treatment modalities to better meet theneeds of their customers for a superior aesthetic treatment. Palomar and Q-MED also recognize that the potential synergistic effects which may beachieved using the current products of both companies may provide improvedtreatment options to customers. In addition, Palomar and Q-MED willcollaborate on marketing campaigns, as well as arranging clinical symposiums,consensus meetings and advisory boards.
The companies intend that Q-MED will be an exclusive distributor in amajor portion of Europe by the end of 2008 and a large portion of the rest ofthe world (excluding North America) by the end of 2009. The transition fromPalomar's existing distributors to Q-MED shall be on a country-by-countrybasis as the companies agree on the terms of each transition. Palomar and Q-MED plan to work with each of Palomar's current distributors to determine howeach distributor might successfully work together with Q-MED during and aftereach country is transitioned.
Joseph P. Caruso, Palomar Chief Executive Officer said, "There is greatpotential in combining the effects of Palomar's light-based systems with Q-MED's leading range of dermal fillers and injectable implants. Both companiesare focused on developing new technologies for products that provide superiorresults. The combination of our individual strengths should yield interestingand important new approaches to satisfying consumer needs. Of the manycompanies Palomar considered working with to better expand Palomar'sdistribution in international markets, Q-MED is the best choice. We areexcited to work with such a dynamic company and believe Q-MED will leveragetheir existing international presence, large customer base and brand namerecognition to greatly expand the international sales of Palomar's light-basedaesthetic devices. In addition, the products of both companies have thepotential for synergistic treatments. This collaboration should propel ourpresence in international markets ahead of where we would be able to grow onour own and provide an improved conduit for new products."
Bengt Agerup, Q-MED Chief Executive Officer said, "This agreementrepresents a major opportunity to provide our customers with leading light-based anti-aging and hair-removal products. Strong R&D commitment and beliefin evidence based aesthetic solutions are a shared value of both ourcompanies. We see this as a great opportunity to bring new treatmentmodalities to our customers and help them further develop their practicemeeting the consumer demand in an ever expanding global market. Palomarshares same company values with us and just like us provides the globalaesthetic medical professional market with R&D and evidence based products,that very well match Restylane range of products and other present and futureproducts Q-MED brings to medical professionals around the world. We areexcited to be participating in what is the first time that two companies from