It'd send it back, looks like the diode suffered COD and needs to be replaced.
There is regulation in these pointers, as long as you run it off batteries that should be okay. It does drive the diode pretty hard though (300 mA for what i guess is a 16x dvd burner ld).
Did you try different batteries? I thought mine had died because one minute it was fine, next minute I turned it on and it was almost an LED. less than 5mW. I changed the batteries and all was well again.