Friday, May 29, 2009

Echo Therapeutics Licenses Needle-Free Prelude SkinPrep System

In our continuing series on companies doing business in Franklin we find this PR Release from Echo Therapeutics. For additional entries in this category, please check this link
FRANKLIN, Mass., May 28 /CNW/ -- Echo Therapeutics, Inc. (OTC Bulletin
Board: ECTE) announced today that it has signed a license agreement with
Ferndale Pharma Group ("Ferndale"), under which Echo granted Ferndale the
right to develop, market, sell and distribute Echo's Prelude(TM) SkinPrep
System ("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 North
America and the United Kingdom. Echo's non-invasive Prelude SkinPrep System
incorporates patented skin permeation control technology which allows for
quick and painless removal of the outermost layer of the skin for both
transdermal drug delivery and glucose measurement.

"Completing this first Prelude licensing agreement was one of our top
priorities," stated Patrick T. Mooney, M.D., Chairman and Chief Executive
Officer of Echo Therapeutics. "Ferndale is a market leader specializing in
advanced skincare and topical therapeutic products. This collaboration
combines our skin permeation technology platform and Ferndale's leadership in
the fast-growing topical anesthetic market based on LMX4, its topical 4%
lidocaine cream."

Dr. Mooney continued, "Importantly, this licensing transaction
demonstrates the drug delivery capabilities of Prelude. We believe that there
are numerous additional partnering opportunities for both Prelude and our
Symphony(TM) tCGM System for needle-free, transdermal continuous glucose
monitoring. We are actively engaged with and interested in finding additional
partners as we leverage the use of Prelude as a transdermal drug delivery
platform and Symphony for continuous glucose monitoring in the many
territories around the world."

Michael Burns, Ph.D., President of Ferndale added, "We are extremely
excited about using Prelude to expand our presence in the important topical
dermal anesthesia market in hospitals, clinics and with plastic surgeons and
dermatologists. We expect Prelude to allow much more rapid onset of
effectiveness for our topical anesthetic product, thereby significantly
increasing the size of our market opportunity."

Under the terms of the agreement, Echo will receive an up-front licensing
fee of US $750,000. Echo will also receive $750,000 upon FDA clearance of the
product and additional milestone payments based on the achievement of certain
net sales targets and guaranteed minimum royalties totaling an additional
$12.6 million. Echo will also receive an escalating royalty on net sales of
the product. Ferndale will also be responsible for all product development
and regulatory costs for the final development of the Prelude SkinPrep System
for topical analgesic/anesthetic drug delivery applications.

About Echo Therapeutics

Echo Therapeutics is focused on medical devices and specialty
pharmaceuticals. Echo is developing a non-invasive, wireless, transdermal
continuous glucose monitoring (tCGM) system for patients with diabetes and for
use in hospital critical care units. Echo is utilizing its Prelude SkinPrep
platform technology for transdermal drug delivery and is developing a wide
range of novel topical reformulations of widely-used, FDA-approved products.

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. Ferndale's LMX 4
topical analgesic cream uses advanced formulation know how that significantly
enhances product performance. LMX 4 is the leading brand in its class and is
widely recognized for its fast onset of analgesic action, wide margin of
safety and superior ease of use.

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 efficacy of Echo's Symphony tCGM System, the failure of
future development and preliminary marketing efforts related to Echo's Prelude
SkinPrep System, risks and uncertainties relating to Echo's ability to
develop, market and sell diagnostic products based on its skin permeation
platform technologies, including the Prelude SkinPrep System, 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 Prelude
SkinPrep System. 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, 2008, its quarterly reports on Form 10-Q, and its
current reports on Form 8-K. Echo Therapeutics, Inc. undertakes no obligation
to publicly update or revise any forward-looking statements.

For More Information:
Patrick T. Mooney, MD
Chairman and Chief Executive Officer
(856) 429-8778

10 Forge Parkway
Franklin, MA 02038, USA
Tel: 1+ 877-476-6878
Fax: 1+ 508-553-8760

For further information: Patrick T. Mooney, MD, Chairman and Chief
Executive Officer of Echo Therapeutics, Inc., +1-856-429-8778 Web Site:

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