PHILADELPHIA, July 11, 2012 /PRNewswire/ -- Echo Therapeutics, Inc. (Nasdaq: ECTE), a company developing its needle-free Symphony® tCGM System as a non-invasive, wireless, transdermal continuous glucose monitoring system and its Prelude® SkinPrep System for transdermal drug delivery, today announced that it signed an amended license agreement with Ferndale Pharma Group, Inc. ("Ferndale") that grants Ferndale the right to develop, market and sell Prelude for painless, needle-free skin preparation prior to the application of topical 4% lidocaine cream for fast-acting, local dermal anesthesia prior to a wide-range of needle-based medical procedures. In addition to the original territory of North America and the United Kingdom, the amended license agreement covers South America, Australia, New Zealand, Switzerland and portions of the European Community.
"We are pleased to extend our collaboration with a valued and longstanding partner. Since 2009, Echo and Ferndale have worked closely together to combine our platform skin permeation technology with Ferndale's leadership in the topical anesthetic market based on its topical 4% lidocaine cream," said Patrick T. Mooney, M.D., Echo's Chairman and CEO. "We believe this expanded agreement will add significant value to Ferndale's worldwide market leadership efforts."
Michael Burns, Ph.D., Ferndale's President added, "We are looking forward to our expanded relationship with Echo and to using Prelude to increase our market share worldwide throughout the important topical dermal anesthesia market. We believe the efficacy of Prelude in enhancing the onset of activity of 4% lidocaine cream was determined in our clinical studies."
Under the terms of the amended agreement, Echo will receive milestone payments upon Ferndale's receipt of regulatory clearance in certain countries of the territory. Ferndale also will pay milestone payments based on the achievement of certain net sales targets, in addition to paying royalties from its sales of Prelude together with 4% lidocaine cream and the related disposable components.
Conference Call
Members of Echo Therapeutics' and Ferndale's senior management teams will host a conference call today at 11:00AM ET to discuss the expanded license agreement. To participate in the call, please dial 877.317.6789 and reference the conference number 10016139. The archived audiocast will be available for fourteen days by visiting the Events section of Echo's website at www.echotx.com.
About Echo Therapeutics
Echo Therapeutics is developing the Symphony tCGM System as a non-invasive, wireless, transdermal continuous glucose monitoring system for patients with diabetes and for use in hospital critical care units. Echo is also developing its needle-free Prelude SkinPrep System as a platform technology for enhanced skin permeation for delivery of topical pharmaceuticals.
About Ferndale Pharma Group
The Ferndale Pharma Group of companies specializes in the development, manufacture, distribution and marketing of various dermatologic products including prescription topical drugs for the treatment of several acute and chronic dermatoses, medical devices that support and maintain wound closures, and an extensive line of proprietary cosmeceutical products.
Cautionary Statement Regarding Forward Looking Statements
The statements in this press release that are not historical facts may constitute forward-looking statements that are based on current expectations and are subject to risks and uncertainties that could cause actual future results to differ materially from those expressed or implied by such statements. Those risks and uncertainties include, but are not limited to, risks related to regulatory approvals and the success of Echo's ongoing studies, including the safety and efficacy of Echo's Symphony tCGM and Prelude SkinPrep Systems, the failure of future development and preliminary marketing efforts related to Echo's Symphony tCGM and Prelude SkinPrep Systems, Echo's ability to secure additional commercial partnering arrangements, risks and uncertainties relating to Echo's and its partners' ability to develop, market and sell diagnostic and transdermal drug delivery products based on its skin permeation platform technologies, including the Symphony tCGM and Prelude SkinPrep Systems, the availability of substantial additional equity or debt capital to support its research, development and product commercialization activities, and the success of its research, development, regulatory approval, marketing and distribution plans and strategies, including those plans and strategies related to its Symphony tCGM and Prelude SkinPrep Systems. These and other risks and uncertainties are identified and described in more detail in Echo's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2011, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K. Echo undertakes no obligation to publicly update or revise any forward-looking statements.