Cynosure (CYNO) agrees to acquire aesthetic laser device maker Palomar Medical Technologies (PMTI +7.6%) for $294M in cash and stock, with the $13.65/share offer representing a premium of 8% on the latter's closing price on Friday. (PR)
Palomar Medical Technologies (PMTI +4.9%) trades higher after settling its patent infringement lawsuits with Syneron Medical (ELOS +4.6%). Under the agreement, Syneron will pay $31M to Palomar for a license to patents on professional laser and lamp-based hair removal systems.
With Allergan (AGN) reining in expectations in its aesthetic/cosmetic businesses, that puts the spotlight on Palomar Medical (PMTI), Syneron (ELOS), Cynosure (CYNO) and Solta Medical (SLTM). As they report later this month, will these smaller aesthetics players show that Allergan's outlook is the exception, or are investors looking at a slower return to normal?