Jan 9 2008
Palomar Medical Technologies, Inc., a leading researcher and developer of light-based systems for cosmetic treatments, today announced the execution of an international distribution agreement with the Swedish company Q-MED AB, a leading biotech/medical device company based in Uppsala, Sweden. Q-MED will eventually be responsible for the marketing, advertising, promotion, sale and distribution of Palomar's professional products for aesthetic treatments outside North America. Q-MED AB is the producer of Restylane, one of the most popular and widely distributed dermal fillers in the world, with over 9 million treatments provided so far. Q-MED AB sells Restylane globally through a network of fully owned sales companies, partners and distributors.
The single source availability of Palomar and Q-MED products will provide physicians with a wide variety of treatment modalities to better meet the needs of their customers for a superior aesthetic treatment. Palomar and Q- MED also recognize that the potential synergistic effects which may be achieved using the current products of both companies may provide improved treatment options to customers. In addition, Palomar and Q-MED will collaborate 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 a major portion of Europe by the end of 2008 and a large portion of the rest of the world (excluding North America) by the end of 2009. The transition from Palomar's existing distributors to Q-MED shall be on a country-by-country basis 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 how each distributor might successfully work together with Q-MED during and after each country is transitioned.
Joseph P. Caruso, Palomar Chief Executive Officer said, "There is great potential in combining the effects of Palomar's light-based systems with Q- MED's leading range of dermal fillers and injectable implants. Both companies are focused on developing new technologies for products that provide superior results. The combination of our individual strengths should yield interesting and important new approaches to satisfying consumer needs. Of the many companies Palomar considered working with to better expand Palomar's distribution in international markets, Q-MED is the best choice. We are excited to work with such a dynamic company and believe Q-MED will leverage their existing international presence, large customer base and brand name recognition to greatly expand the international sales of Palomar's light-based aesthetic devices. In addition, the products of both companies have the potential for synergistic treatments. This collaboration should propel our presence in international markets ahead of where we would be able to grow on our own and provide an improved conduit for new products."
Bengt Agerup, Q-MED Chief Executive Officer said, "This agreement represents a major opportunity to provide our customers with leading light- based anti-aging and hair-removal products. Strong R&D commitment and belief in evidence based aesthetic solutions are a shared value of both our companies. We see this as a great opportunity to bring new treatment modalities to our customers and help them further develop their practice meeting the consumer demand in an ever expanding global market. Palomar shares same company values with us and just like us provides the global aesthetic medical professional market with R&D and evidence based products, that very well match Restylane range of products and other present and future products Q-MED brings to medical professionals around the world. We are excited to be participating in what is the first time that two companies from very different aesthetic industry segments have entered into such a collaboration."
For more information, please see the International Distributor Agreement filed as Exhibit 10.1 to a Current Report on Form 8-K filed today.