Palomar Medical Technologies Inc., a maker of cosmetic lasers, said it will receive $31 million plus royalties from Syneron Medical Ltd. (ELOS) in a settlement of their patent-infringement dispute over hair-removal systems.
Syneron and its Candela unit will get a license to Palomar technology for professional hair-removal systems, and will pay royalties for home-use products, the companies said today in a statement. Palomar will also get a license to some Syneron patents.
The settlement ends a dispute started in 2006 over high- powered lasers used to remove hair. Burlington, Massachusetts- based Palomar’s lawsuit was against Candela, which Yokneam Illit, Israel-based Syneron bought last year.
The agreement “eliminates our exposure to continued legal liability in the matter, does not require any additional payments for professional hair-removal systems, and supports our ongoing efforts to improve the company’s gross and operating margins,” Syneron Chief Executive Officer Louis P. Scafuri said in the statement.
Both companies make light-based systems for cosmetic procedures including the removal of hair, wrinkles and varicose veins.
Palomar rose 26 cents, or 3.1 percent, to $8.66 at 4:29 p.m. New York time on the Nasdaq Stock Market. Syneron rose 38 cents, or 3.7 percent, to $10.56 in U.S. trading.
General Hospital Corp. in Boston, which licenses the technology to Palomar, will get 40 percent of the settlement payments minus Palomar’s legal costs.
The settled cases include Palomar Medical Technologies Inc. (PMTI) v. Syneron Inc., 08cv11902, and Palomar v. Candela Corp., 06cv11400, Candela Corp. v Palomar Medical Technologies Inc., both U.S. District Court for the District of Massachusetts (Boston).
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