Echo Therapeutics Inc. (ECTE), a firm engaged in the development of transdermal skin permeation and diagnostic medical devices, recently announced re-establishment of its contract with Medical Technologies Innovation Asia (MTIA), Ltd.
Following the restoration of the partnership, Echo Therapeutics has started the technology transfer process. The relationship between these two companies goes back to Dec 2013, when they had initiated an agreement.
However, this development did not seem to make much of an impact in the stock market, as share price of Echo Therapeutics fell marginally by 0.93% to $2.12 in the last reported session.
This re-affirmed partnership is aimed at jointly addressing increased demand for both glucose monitoring and transdermal drug delivery solutions in China. The terms of the deal include a licensing and technology transfer, under which, MTIA will be able to manufacture Echo's proprietary skin permeation and analyte measurement technology.
MTIA has been awarded rights by Echo Therapeutics to develop, manufacture, market, and distribute Echo's technology on an exclusive basis, specifically for the Chinese market which includes the Peoples' Republic of China, Hong Kong, Macau and Taiwan.
Along with the partnership, Echo Therapeutics also notified the issuing of a patent. The patent, which is known as "Skin Permeation Device for Analyte Sensing or Transdermal Drug Delivery," has been issued to Echo Therapeutics in China. The patent includes claims associated with the skin preparation device, which can prepare the skin in such manner as to permit either drug delivery or analyte extraction.
The issuance of the patent is expected to expand the intellectual property portfolio of Echo Therapeutics. Also, we feel that the re-establishment of the partnership will bode well for the company, going forward.
These developments underscore the company’s recent transformation. Last month, Echo Therapeutics underwent a major change in its management team. Also, the company re-hired a product development team to back its new corporate strategy. It is expected that these changes will aid Echo Therapeutics to attract new partnerships in the consumer and medical device industries in the future.
Zacks Rank
Stocks in the medical sector that warrants a look are Inogen (INGN), Synergetics USA (SURG) and Natus Medical (BABY). All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment