Palomar, Gillette Extend Product Deal

Palomar and Gillette, which is part of the Procter & Gamble Co., are extending their current agreement to develop an at-home hair removal system for women until Feb. 29.

In the meantime, they will negotiate for a new agreement to enable the project to continue. A new agreement is not guaranteed, and if the two parties don't agree, the existing agreement could be terminated.

Palomar said the new agreement might include its release from exclusivity and Gillette's retention of nonexclusive rights to Palomar's technology and intellectual property. In return, the percentage of sales that Gillette pays to Palomar would be reduced and payments would be paid quarterly.

Palomar and Gillette began working on the project in 2003.

Palomar shares fell $2.54, or 13 percent, to $17.09 in afternoon trading, while Procter & Gamble stock rose 81 cents, or 1.1 percent, to $74.