BANGALORE, June 5 (Reuters) – Palomar Medical Technologies Inc (PMTI.O) said U.S. health regulators approved over-the-counter (OTC) marketing of its laser device for treatment of wrinkles around the eyes, sending the aesthetic device maker’s shares up as much as 60 percent.
"It’s a major positive. It’s a huge market opportunity," Maxim Group analyst Anthony Vendetti said.
He estimated the device could add between $12.5 million and $40.0 million to Palomar’s 2010 revenues.
Three analysts on average were expecting Palomar to post revenue of $89.5 million in 2010, according to Reuters Estimates.
The device was developed by Palomar and completed together with Johnson and Johnson Consumer Cos, under a previously announced deal to develop light-based anti-aging devices, the company said in a statement.
Palomar shares were up 58 percent at $17.35 in Friday afternoon trade on Nasdaq. They touched a high of $17.72 earlier in the session.
Maxim Group makes a market in Palomar and intends to seek investment banking business from the company within the next three months.