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Candela accused eight Palomar handpieces when used with four differentplatform systems of infringing all of the claims of three Candela Patents.Specifically Candela accused Palomar's LuxY, LuxYs, LuxG, LuxB, Lux1540,Lux1540z, LuxIR and LuxDeepIR handpieces when used on the StarLux 500, StarLux300, MediLux or EsteLux Systems of infringing U.S. Patent Nos. 5,810,801;6,120,497 and 6,659,999. On June 20, 2008, Candela dropped its accusationsagainst Palomar's LuxB handpiece. Then on September 22, 2008, just daysbefore the start of trial, Candela (i) dropped its accusations againstPalomar's LuxY, LuxYs, and LuxG handpieces, (ii) dropped two of its patentsfrom the lawsuit, specifically 6,120,497 and 6,659,999, and (iii) dropped fromthe lawsuit all method claims in 5,810,801. Consequently, Candela went totrial on September 29th accusing only Palomar's Lux1540, Lux1540z, LuxIR andLuxDeepIR when used with the StarLux 500 or 300 of infringement of only claims11-14 of 5,810,801. In addition, Candela significantly reduced the amount ofdamages it was seeking.
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Chief Executive Officer Joseph P. Caruso commented, "We are very pleasedwith the jury's decision. The jury's verdict completes our win in thislawsuit by finding our products to be non-infringing and the patent claims atissue to be invalid. We are also happy that the costs associated with thistrial are behind us."
Mr. Caruso continued, "Importantly, we now move closer to Palomar'slawsuit against Candela for infringement of Palomar's hair removal patents:U.S. Patent Nos. 5,595,568 and 5,735,844. Candela has admitted that itbrought the lawsuit in Texas in retaliation for the hair removal lawsuit. Inthis just completed Texas trial, Candela's corporate representative testifiedunder oath that the demand for hair removal was far greater than the demandfor any other laser treatment. We agree. That trial is not yet scheduled butwe expect the trial to take place next year."
About Palomar Medical Technologies, Inc.: Palomar is a leading researcherand developer of light-based systems for cosmetic treatments. Palomarpioneered the optical hair removal field, when, in 1997, it introduced thefirst high-powered laser hair removal system. Since then, many of the majoradvances in light-based hair removal have been based on Palomar technology. InDecember 2006, Palomar became the first company to receive a 510(k)over-the-counter (OTC) clearance from the United States Food and DrugAdministration (FDA) for a new, patented, home use, light-based hair removaldevice. OTC clearance allows the product to be marketed and sold directly toconsumers without a prescription. There are now millions of light-basedcosmetic procedures performed around the world every year in physicianoffices, clinics, spas and salons. Palomar is testing many new and excitingapplications to further advance the hair removal market and other cosmeticapplications. Palomar is focused on developing proprietary light-basedtechnology for introduction to the mass markets. Palomar has granted TheProcter & Gamble Company a non-exclusive License Agreement to certain patents,technology and FDA documents related to the home-use, light-based hair removalfield for women. In addition, Palomar has an exclusive development and licenseagreement with Johnson & Johnson Consumer Companies to develop and potentiallycommercialize home-use, light-based devices for reducing or reshaping body fatincluding cellulite, reducing the appearance of skin aging, and reducing orpreventing acne.
This press release contains forward-looking statements within the meaningof the U.S. Private Securities Litigation Reform Act of 1995. Forward-lookingstatements are based on the Company's current expectations, plans, intentions,beliefs or predictions. These forward-looking statements are neither promisesnor guarantees, but involve risk and uncertainties that may individually ormutually impact the matters herein, and cause actual results, events andperformance to differ materially from such forward-looking statements. Theserisk factors include, but are not limited to, results of future operations,technological difficulties in developing or introducing new products, theresults of future research, lack of product demand and market acceptance forcurrent and future products, the effect of economic conditions, challenges inmanaging joint ventures and research with third parties and governmentcontracts, the impact of competitive products and pricing, governmentalregulations with respect to medical devices, including whether FDA clearancewill be obtained for future products and additional applications, the resultsof litigation, including patent infringement lawsuits, difficulties incollecting royalties, potential infringement of third-party intellectualproperty rights, factors affecting the Company's future income and resultingability to utilize its NOLs, and/or other factors, which are detailed fromtime to time in the Company's SEC reports, including the report on Form 10-Kfor the year ended December 31, 2007 and the Company's quarterly reports onForm 10-Q. Readers are cautioned not to place undue reliance on theseforward-looking statements, which speak only as of the date hereof. TheCompany undertakes no obligation to release publicly the result of anyrevisions to these forward-looking statements that may be made to reflectevents or circumstances after the date hereof or to reflect the occurrence ofunanticipated events.Contacts: Kayla Castle Investor Relations Manager Palomar Medical Technologies, Inc. 781-993-2411 [email protected]
SOURCE Palomar Medical Technologies, Inc.
