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We can call this the Botox killer.

Palomar Medical Technologies (NASDAQ:PMTI) on Friday announced the FDA approval of their anti wrinkle laser device.

Maxim Group analyst Anthony Vendetti estimated the device could add between $12.5 million and $40.0 million to Palomar's 2010 revenues.

My understanding from PMTI’s most recent 10 Q is that the deal with J&J (NYSE:JNJ) is a licensing deal. If this is the case then the estimated $10 - $40 million in revenue will flow straight to the bottom line.

The number of shares outstanding of the registrant's common stock as of the close of business on May 3, 2009 was 18,041,090

This translates into an additional $0.50 to $2.00 per share a year.

Analysts had projected next year earnings of $0.22 a share.

So the question is, where does this move stop? Do we go to $25, which is a nice round number about 11 times earnings? Do we look at their earnings a few years ago at $3 a share when the stock was trading in the $30 - $50 dollar range?

I am personally looking for a move to $25 on Monday and then we will see from there if it has the strength to go over $35 in the next few months.

Disclosure: I went long when the stock was at $16.

Source: Palomar Medical Technologies: Where Will Share Prices Go Next?