A Medical Device Daily

Palomar Medical Technologies (Burlington, Massachusetts) has reported the termination of its agreement with Johnson & Johnson Consumer Companies (JJCC; Skillman, New Jersey) to develop, clinically test and commercialize home-use, light-based devices for reducing or reshaping body fat including cellulite; reducing appearance of skin aging; and reducing or preventing acne.

Despite Palomar having met all of its deliverables under the agreement, JJCC terminated the agreement referencing the current unfavorable economic conditions as the reason for its decision, according to Palomar.

With this decision, JJCC avoids having to make a large commercialization payment to Palomar and avoids having to commit to the significant level of funding required to successfully launch a new product into the mass market.

Upon termination of the agreement, JJCC's license to Palomar technology was terminated and all technology and intellectual property rights related to light-based devices developed under the agreement were assigned to Palomar. JJCC is also precluded from further development or commercialization of the light-based devices developed under the agreement.

Palomar will continue with the commercialization of the light-based devices developed under the agreement.

In June 2009, Palomar received FDA 510(k) over-the-counter (OTC) clearance for a new, patented, home-use, laser device for the treatment of periorbital wrinkles. OTC clearance allows this wrinkle treatment device to be marketed and sold directly to consumers without a prescription.

Palomar CEO Joseph Caruso said, "The current economic climate does not warrant a large scale investment in a mass market launch at this time. Therefore, we have adjusted our launch plans to be more in line with current economic conditions. In the short-term, our goal is to establish our consumer products in the market using certain specialty channels and gather the valuable information needed to fully execute our long-term strategy of a full mass market launch. Our long-term goal remains the same; to tap into the mass market using our patented technology in a number of key areas with multiple product offerings and multiple channels worldwide."

In other agreements/contracts news:

• MedAssets (Atlanta) has reached an agreement to become the primary group purchasing organization (GPO) and a technology provider for supply chain system optimization for Maury Regional Medical Center (Columbia, Tennessee). MedAssets will help the integrated delivery network better serve its patients by achieving greater supply cost savings and efficiencies. Maury Regional also uses a number of MedAssets' revenue cycle management solutions and has been a MedAssets customer since 1985.

• Solos Endoscopy (Boston) has received multiple purchase orders for its MammoView line of surgical endoscopy instruments from Wheaton Franciscan Healthcare (Milwaukee). Wheaton Franciscan Healthcare is one of the largest integrated, non-profit healthcare systems in Wisconsin. Solos Endoscopy's MammoView system employs micro endoscopes and related instrumentation to provide physicians with clear and precise images of the milk ducts where the majority of breast cancers arise.