The Symphony device is a non-invasive, wireless system designed to provide accurate, real-time blood glucose data for patients in hospital critical-care settings.
The 10-year deal gives Hong Kong-based Medical Technologies Innovation Asia the exclusive rights to Philadelphia-based Echo’s Symphony technology for the Chinese market, including China, Hong Kong, Macau and Taiwan.
And MTIA along with Platinum Partners bought a $10 million stake in Echo, according to a press release.
The news sent ECTE shares up 14.7% to a $3.36-per-share close Dec. 11, the day the deal was announced. The stock was trading at $3.27 apiece today as of about 2 p.m., down 2.7%.
“We are excited to be working with MTIA in this new relationship to meet the growing glucose monitoring needs in China. We believe MTIA’s expertise and relationships in China will enhance Echo’s success in this region and our overall value proposition. In addition to strengthening the balance sheet, this $10 million cash infusion, following the recent positive clinical results for use of our Symphony CGM System, represents an important achievement for Echo as we progress toward regulatory clearance,” interim CEO Robert Doman said in prepared remarks.
The company is on a roll, announcing a $15 million offering last week and touting positive results from a clinical trial of the Symphony system it hopes to use to back an application for CE Mark approval in the European Union.
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