FRANKLIN, Mass., May 10 /PRNewswire-FirstCall/ -- Sontra Medical
Corporation (Nasdaq: SONT) announced today financial results for the first
quarter ended March 31, 2005. For the three months ended March 31, 2005, the
net loss applicable to common stockholders was $1,293,000, or $.06 per share,
as compared to $1,403,000, or $.11 per share, for the same period in 2004.
The Company ended the quarter with $7,892,000 in cash and short term
investments. The Company expects that its cash and short term investments on
hand will be sufficient to fund operations through at least June 2006.
1st Quarter Product Highlights:
SonoPrep(R) and Procedure Tray for Topical Lidocaine
* Recorded quarterly product sales of $116,000.
* Product being evaluated by a number of influential pediatric teaching
hospitals.
* Completed pediatric clinical study at Connecticut Children's Medical
Center.
* Results from Rhode Island Hospital ER clinical study published in
Academic Emergency Medicine Journal.
* Product development underway to address market opportunities in
aesthetics and dermatology.
Symphony(R) Continuous Non-Invasive Glucose Monitoring System
* Developed product strategy for hospital Intensive Care Unit (ICU)
product, physician diabetes management product and patient home
diabetes management product.
* Initiated product development of ICU continuous glucose monitor.
Transdermal Vaccination Facilitated by SonoPrep:
* Commenced Phase I human clinical study with influenza vaccine at St.
Louis University.
* Commenced Phase I human clinical study with hepatitis A vaccine at UMass
Medical Center.
"During the first quarter, we made excellent progress rolling out the
SonoPrep product for the $100 million topical lidocaine market and in the
development of other transdermal products," stated Thomas W. Davison, PhD,
Sontra's President and Chief Executive Officer. "We are working closely with
our new SonoPrep distributors and have a number of product evaluations on-
going at large, influential pediatric hospitals. We are on plan to have full
U.S. distribution in place by the end of June 2005."
Dr. Davison added, "In glucose monitoring, we expect to complete
development of product prototypes of the Symphony continuous non-invasive
glucose monitor for the ICU application by the end of 2005 so that we can
conduct validation clinical studies in early 2006. Frequent glucose
monitoring and intensive insulin therapy is a new trend in critical care
medicine that has led to significant reductions in patient mortality,
complications, hospital stay and cost. As a result, intensive care nurses are
measuring blood glucose for their patients up to every hour so that they can
adjust insulin infusions and keep blood glucose under very tight control.
Leading intensive care physicians from major teaching hospitals in Boston and
Providence that I have visited believe that a continuous monitor will not only
save valuable nursing time but might also enable them to achieve tighter
glycemic control by developing improved insulin delivery algorithms."
Finally, Dr. Davison added "We are also continuing to develop our Symphony
Diabetes Management product for the home testing market in parallel with the
ICU product, as the product technologies are the same and specifications are
very similar. In transdermal vaccination, we have initiated two human clinical
studies, a hepatitis A vaccine study at UMass Medical Center and a flu vaccine
study at St. Louis University. Based on our initial clinical results, we are
confident that the SonoPrep technology can address major health challenges of
both the $5 billion glucose testing market and the $3 billion vaccine market."
Conference Call Information
Sontra will host a live conference call and listen-only Webcast on
Wednesday, May 11, 2005 at 11 a.m. ET to provide a business update and discuss
its first quarter 2005 financial results.
To participate in the conference call, please dial: 1-973-409-9259.
A listen-only Webcast and replay of the conference call will be available
at: http://www.sontra.com.
About Sontra Medical Corporation (http://www.sontra.com)
Sontra Medical Corporation is a technology leader in transdermal science.
Sontra's SonoPrep ultrasound-mediated skin permeation technology combined with
technical competencies in transdermal drug formulation, delivery systems and
biosensors is creating a new paradigm in transdermal drug delivery and
diagnosis. The SonoPrep technology has demonstrated strong results from its
initial human clinical trials at leading universities and medical centers for
several billion dollar market opportunities including the transdermal delivery
of vaccines and large molecule drugs and continuous non-invasive glucose
monitoring. Sontra is currently marketing the SonoPrep device and procedure
tray for use with topical lidocaine to achieve rapid (within five minutes)
skin anesthesia.
Contacts:
Sean Moran, Sontra Medical CFO
508-553-8850 ext 234
or
Evan Smith, CFA / Erica Pettit, Financial Dynamics
212-850-5606 / 212-850-5614
SonoPrep is a registered trademark of Sontra Medical Corporation. All
other company, product or service names mentioned herein are the trademarks or
registered trademarks of their respective owners.
This press release contains forward-looking statements, which address a
variety of subjects including, for example, the expected benefits and efficacy
of the SonoPrep device in connection with diagnostics, vaccine delivery,
glucose monitoring and transdermal drug delivery, the expected market
opportunities, clinical study results, distribution and market acceptance of
the SonoPrep device and technology, the expected benefits and market
opportunity of glucose monitoring in the intensive care unit, the expected
size of the markets for the SonoPrep device and technology, Sontra's expected
ability to form strategic partnerships and commercialize additional products,
including for the intensive care unit, and Sontra's business, research,
product development, regulatory approval, marketing and distribution plans and
strategies. Statements that are not historical facts, including statements
about our beliefs and expectations, are forward-looking statements. Such
statements are based on our current expectations and are subject to a number
of factors and uncertainties, which could cause actual results to differ
materially from those described in the forward-looking statements. The
following important factors and uncertainties, among others, could cause
actual results to differ materially from those described in these forward-
looking statements: adverse results in product development, clinical trials,
commercialization efforts, product distribution and market acceptance;
difficulties or delays in obtaining regulatory approvals to market products
resulting from development efforts; difficulties or delays associated with
sources of regulatory-approved transdermal drugs and vaccines; failure to
obtain and maintain patent protection for discoveries; commercial limitations
imposed by patents owned or controlled by third parties; dependence upon
strategic partners and third-party distributors to develop, commercialize,
market and sell products based on our work; the commercial success of
products; and the requirement for substantial funding to conduct research and
development and to expand commercialization, distribution and marketing
activities. For detailed information about factors that could cause actual
results to differ materially from those described in the forward-looking
statements, please refer to Sontra's filings with the Securities and Exchange
Commission, including Sontra's most recent Annual Report on Form 10-KSB and
Quarterly Report on Form 10-QSB. Forward-looking statements represent
management's current expectations and are inherently uncertain. We do not
undertake any obligation to update forward-looking statements made by us.
SONTRA MEDICAL CORPORATION
Consolidated Statements of Loss
(Unaudited)
Three Months Ended
March 31,
2005 2004
Product revenues $116,053 $-
Cost of product sales 80,154 -
Gross margin 35,899 -
Operating Expenses:
Research and development 906,300 675,907
Selling, general and
administrative 473,809 527,494
Total operating expenses 1,380,109 1,203,401
Loss from operations (1,344,210) (1,203,401)
Interest income 53,030 14,229
Net loss (1,291,180) (1,189,172)
Accretion of dividend and beneficial
conversion feature on Series A
Convertible Preferred Stock (1,447) (213,434)
Net loss applicable to common
stockholders $(1,292,627) $(1,402,606)
Net loss per common share, basic and
diluted $(0.06) $(0.11)
Basis and diluted weighted average
common shares outstanding 22,131,657 12,711,051
SONTRA MEDICAL CORPORATION
Consolidated Balance Sheets
As of
March 31, December 31,
2005 2004
(Unaudited)
Assets:
Current Assets:
Cash and cash equivalents $941,696 $2,565,244
Short term investments 6,950,000 6,950,000
Accounts receivable 95,843 16,821
Legal settlement receivable - 250,000
Inventory, net of reserve for
obsolescence 121,451 152,642
Prepaid expenses and other
current assets 138,001 69,492
Total current assets 8,246,991 10,004,199
Property and Equipment, at cost
Computer equipment 228,102 206,970
Office and laboratory equipment 580,696 492,377
Furniture and fixtures 14,288 14,288
Manufacturing equipment 182,210 182,210
Leasehold improvements 177,768 174,698
1,183,064 1,070,543
Less-Accumulated depreciation
and amortization (696,656) (655,242)
Net property and equipment 486,408 415,301
Restricted Cash 38,997 38,997
Other Assets 2,000 2,000
Total assets $8,774,396 $10,460,497
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Accounts payable $278,821 $358,530
Accrued expenses 275,882 759,051
Total current liabilities 554,703 1,117,581
Commitments
Stockholders' Equity
Series A Convertible Preferred
Stock, $0.01 par value,
authorized 7,000,000 shares,
issued and outstanding 73,334
shares at March 31, 2005 and
December 31, 2004 (preference
in liquidation of $77,738) 77,738 76,291
Common stock, $0.01 par value,
authorized 40,000,000 shares,
issued and outstanding
22,179,904 shares at March 31,
2005 and 21,935,732 shares at
December 31, 2004 221,799 219,358
Additional paid-in capital 32,674,264 32,674,740
Deferred stock-based
compensation (80,367) (244,912)
Accumulated deficit (24,673,741) (23,382,561)
Total stockholders' equity 8,219,693 9,342,916
Total liabilities and stockholders'
equity $8,774,396 $10,460,497
SOURCE Sontra Medical Corporation
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Related links:
http://www.sontra.com
CONTACT:
Sean Moran, CFO of Sontra Medical,
+1-508-553-8850 ext. 234; or Evan Smith, CFA, +1-212-850-5606, or
Erica Pettit, Financial Dynamics, +1-212- 850-5614
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