PHILADELPHIA, Dec. 10, 2013 /PRNewswire/ -- Echo Therapeutics, Inc. (Nasdaq: ECTE) ("Echo"), a medical device company developing its Symphony® CGM System as a non-invasive, wireless continuous glucose monitoring system, today announced that it entered into a strategic collaboration agreement with Medical Technologies Innovation Asia (MTIA), Ltd., Hong Kong, for a license arrangement and equity investment in Echo. Under the terms of the License, Development and Commercialization Agreement, dated December 9, 2013, between MTIA and Echo (the "Agreement"), Echo granted MTIA rights to develop, manufacture, market and distribute Echo's Symphony CGM System on an exclusive basis for the Chinese market, including the Peoples' Republic of China, Hong Kong, Macau and Taiwan.
Under the terms of the Agreement, MTIA is responsible for development costs, as well as manufacturing and marketing costs, relating to the Symphony CGM System for the Chinese market, and for obtaining regulatory approval for the product in the licensed territories. Upon the earlier of regulatory approval from the China Food and Drug Administration or upon Echo's termination of the Agreement, MTIA is entitled to reimbursement of development costs up to $1.5 million in the form of shares of Echo's common stock valued at $2.71, which was the NASDAQ closing price on December 9, 2013. The parties will share net sales of the product generated in the territory. The term of the Agreement is ten (10) years, subject to certain rights to earlier termination for breach, change of control and certain performance obligations.
The worldwide market for glucose monitoring devices is approximately $10 billion, and is largely composed
|SOURCE Echo Therapeutics, Inc.|
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