Gillette invests in laser hair removal device
Wed February 19, 2003 10:14 AM ET
BURLINGTON, Mass., Feb 19 (Reuters) - Consumer products maker Gillette Co. G.N on Wednesday said it would invest up to $7 million with Palomar Medical Technologies Inc. PMTI.O to develop an at-home laser hair removal device for women.
Shares of Palomar jumped as high as $2.91, after the deal was announced, before trading up 45 cents, or 20.8 percent, at $2.61 on Nasdaq. Gillette edged up 4 cents to $30.14 on the New York Stock Exchange.
Gillette plans to invest up to $7 million over the next 30 months to develop the device, which would be an at-home version of a costly hair removal machine that can only be used at a doctor’s office.
For now, the deal covers only research and development, but if testing and regulatory requirements are met, the two companies said they will consider a commercial launch.
Ironically, the product – if successful – could cut into demand for Gillette’s namesake razors, but a spokeswoman said the company hoped that any new product would “augment and enhance” the razor business.