LAS VEGAS, Jan. 19, 2010 (GLOBE NEWSWIRE) -- The aging baby boomers and a national obesity crisis have contributed to an enormous frequency of diabetes in the American population. For many, sticking a needle in their fingers is the only way to know if their blood sugar levels are normal. It indeed seems a primitive practice in a world where kids now have games and toys where they move objects only with their minds.
To the rescue of this group and others looking for a method beyond the oft-used, needle-through-the-finger technique is Echo Therapeutics (OTCBB:ECTE), which is focused on transdermal continuous glucose monitoring systems for people with diabetes and advanced topical reformulations of FDA-approved specialty pharmaceuticals.
Simply put, the company has invented a process called Symphony that negates the need in some instances for the venerable needle by prepping the skin to allow for a wireless reading of the glucose level. Echo’s method used to prep the skin for Symphony is called Prelude™ SkinPrep, a novel, needle-free platform technology that increases skin permeability. It can be used for drug delivery as well, opening doors to a whole new and potentially broad category of uses.
From our vantage, Echo’s technology looks like a better mousetrap idea long overdue with a large class of potential patients. Moreover, the drug delivery system appears to be a game-changer if adopted by larger companies looking for a different way to deliver drugs into patients without a needle.
Prelude certainly garners additional credibility with a promising deal with Ferndale Pharmaceuticals signed already. Echo has inked a $15 million agreement, giving Ferndale a license to develop, market and sell Prelude for enhanced delivery of Ferndale’s topical lidocaine product. Echo received $750,000 up-front and will receive $750,000 upon FDA approval, as well as $12.5 million in milestones and guaranteed minimum royalty payments. Echo will also receive a double-digit royalty on net sales of the product.
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