WAYNE, Pa., June 27 /PRNewswire-FirstCall/ -- Escalon Medical Corp. today announced that its subsidiary, Drew Scientific, Inc., has signed a non-exclusive manufacturing, worldwide distribution and co-marketing agreement with PointCare Technologies, Inc., a privately-held medical diagnostics company that provides CD4 blood cell testing systems to monitor immune system functions and progression of disease in patients with HIV/AIDS.
Under the agreement, Drew Scientific will expand its Excell 22(TM) five part differential hematology platform to perform PointCare’s proprietary CD4 test. Concurrently, PointCare technologies will modify its patented chemical reagents to run on the Excell 22(TM).
The new diagnostic platform is expected to be launched in the first half of 2007, subject to 510(K) application submission and review by the U.S. Food and Drug Administration, and both companies will have the rights to market the instrument and reagents worldwide. This testing platform is expected to be the first system to provide the combination of hematology and CD4 testing on an affordable, fully automated instrument. The new method will be much easier to use than existing CD4 techniques. Therefore it can be used in HIV/AIDS clinics worldwide even if highly trained laboratory specialists, necessary for current CD4 techniques, are not available. In such settings the new platform is expected to become a key component in rapidly determining the drug therapy required by providing the test results during the same visit. As a crucial component to monitor the HIV/AIDS infection and ensuring the effective treatment of antiretroviral drugs, the World Health Organization recommends that CD4 should be measured in all HIV/AIDS patients every three months.
Dr. Petra Krauledat, PointCare Technology’s President and Chief Executive Officer, noted, “We are very excited about the strategic relationship with Drew Scientific and its parent Escalon Medical Corp. Working together we plan to make immune hematological testing easier and more broadly usable. An invention by Dr. Peter Hansen, PointCare’s Chief Scientific Officer, brought CD4 testing out of the research laboratory and into the clinical setting, 25 years ago by eliminating complex and cumbersome sample preparation techniques. It is now time to take the next step and leave the special hematology laboratory behind, where CD4 tests are performed today, and move it into a setting much closer to the patient. PointCare’s proprietary technology is based on colloidal nanoparticles and in combination with Drew’s achievements in highly automated, yet affordable instrumentation, will now allow for CD4 tests to be performed in the clinical setting simultaneously with routine blood cell counting, which is essential for complete patient care.”
Richard J. DePiano, Escalon’s Chairman and Chief Executive Officer commented, “We are excited about this opportunity to integrate Drew’s strengths in hematology instrumentation, sales and distribution with the clear innovation of PointCare Technologies. PointCare has earned a positive reputation in the market for easy to use CD4 analyzers that can be used in remote locations and, jointly, we look forward to providing diagnostic facilities to all regions worldwide. Additionally, this collaboration will extend our product portfolio and, by offering a fully integrated, low cost instrument that will be unique in its ability to perform both a full hematology test and a CD4 test, will provide us the opportunity to develop new markets for our hematology business.”
About PointCare Technologies, Inc.
PointCare Technologies Inc. is a privately held company located near Boston, Massachusetts. It has provided instruments and reagents to HIV clinics in various countries, including sub-Saharan Africa. PointCare’s patented technology uses gold nanoparticles to accurately measure CD4 positive lymphocytes thereby avoiding the delays and expense related to fluorescence technology.
About Escalon
Founded in 1987, Escalon develops markets and distributes ophthalmic diagnostic, surgical and pharmaceutical products as well as vascular access devices. Drew, which operates as a separate business unit, provides instrumentation and consumables for the diagnosis and monitoring of medical disorders in the areas of diabetes, cardiovascular diseases and hematology, as well as veterinary hematology and blood chemistry. Escalon seeks to utilize strategic partnerships to help finance its development programs and is also seeking acquisitions to further diversify its product line to achieve critical mass in sales and take better advantage of the Escalon’s distribution capabilities. Escalon has headquarters in Wayne, Pennsylvania and manufacturing operations in Long Island, New York, New Berlin, Wisconsin, Dallas, Texas, Oxford, Connecticut and Barrow-in-Furness, U.K.
Note: This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about Escalon’s future prospects. They are based on the Escalon’s current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether Escalon is able to improve upon the operations of Escalon’s business units, including, the integration of Drew’s operations, generate cash and identify, finance and enter into business relationships and acquisitions, integrate and leverage those business relationships and acquisitions, uncertainties and risks related to new product development, commercialization, manufacturing and market acceptance of new products, marketing acceptance of existing products in new markets, the continuity of royalty revenue, litigation and non-recurring expenses, research and development activities, including failure to demonstrate clinical efficacy, delays by regulatory authorities, scientific and technical advances by Escalon or third parties, introduction of competitive products, third party reimbursement and physician training as well as general economic conditions. Further information about these and other relevant risks and uncertainties may be found in Escalon’s report on Form 10-K, and its other filings with the Securities and Exchange Commission, all of which are available from the Commission as well as other sources.
Escalon Medical Corp.
CONTACT: Richard J. DePiano, Chairman and CEO of Escalon, +1-610-688-6830;or Joseph Calabrese of Financial Relations Board, +1-212-827-3772
