FRANKLIN, Mass., Aug. 10 /PRNewswire-FirstCall/ -- Sontra Medical
Corporation (Nasdaq: SONT) has announced financial results for the second
quarter and six months ended June 30, 2005. For the three months ended June
30, 2005, the net loss applicable to common stockholders was $1,753,000, or
$.08 per share, as compared to $1,407,000, or $.09 per share, for the same
period in 2004. For the six months ended June 30, 2005, the net loss
applicable to common stockholders was $3,045,000, or $.14 per share, as
compared to $2,810,000, or $.19 per share, for the same period in 2004. The
Company ended the quarter with $6,833,000 in cash and short-term investments
and expects that these funds will be sufficient to fund operations through at
least June 2006.
2nd Quarter Product Highlights:
SonoPrep(R) and Procedure Tray for Topical Lidocaine
* Adoption at first centers of influence, including Connecticut Children's
Medical Center and St. Francis Hospital in Hartford, Ct. -- sites of
completed and ongoing clinical studies.
* Product evaluations continuing at large pediatric hospitals.
* Completed test-marketing program targeting pediatrician office practices
and planning web-based distribution program.
* Commenced clinical studies in blood banking and port access.
* Completed development of 2nd generation SonoPrep and transitioning to
manufacturing.
Continuous Transdermal Glucose Monitoring System
* Formed Clinical Advisory Board for hospital critical care glucose
monitor.
* Completed product development of wireless transmitter and meter for ICU
glucose monitor.
* Patent granted covering SonoPrep control mechanism that precisely
controls the level of skin permeability.
Transdermal Vaccination Facilitated by SonoPrep
* Completed patient enrollment in two transdermal vaccination studies:
-- St. Louis University-influenza vaccine.
-- University of Massachusetts Medical Center-hepatitis A vaccine.
* Completing blood titers and analyzing results.
"Successful conclusion of the SonoPrep product evaluation by nurses at
Connecticut Children's Medical Center in Hartford was a giant step in
demonstrating acceptance of our technology," stated Thomas W. Davison, PhD,
Sontra's President and Chief Executive Officer. Connecticut Children's Medical
Center has been the site of several pediatric clinical studies of SonoPrep as
well as other topical anesthetic systems under the direction of Dr. William
Zempsky, MD, a leading pediatric pain specialist. Dr. Davison added, "During
the second quarter, we completed evaluations of our topical lidocaine product
at several major pediatric hospitals that we expect will serve as reference
accounts and have increasing product utilization. We also completed a test
marketing and distribution program targeting pediatrician office practices in
Birmingham, Alabama that will be expanded to include a web-based program."
Dr. Davison continued, "In transdermal continuous glucose monitoring, we
have completed the designs of a new telemetry-based sensor and meter and
expect to complete prototype fabrication on schedule during 2005 so that
validation clinical studies in critical care and diabetes management can
commence in 2006. Frequent glucose monitoring and intensive insulin therapy
have become a standard of care in critical care medicine, as tight glucose
control has been shown to significantly reduce patient mortality,
complications, hospital stay and cost. As a result, intensive care nurses are
measuring blood glucose for their patients up to every hour in order to adjust
insulin infusion rates. Development of our critical care glucose monitor is
proceeding in parallel with the development of a product for the $5 billion
diabetes home testing market, as the product technologies are the same and
designs are very similar."
Conference Call Information
Sontra will host a live conference call and listen-only Webcast on
Wednesday, August 10, 2005 at 11 a.m. ET to provide a business update and
discuss its second 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.
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 and product evaluation results, distribution and
market acceptance of the SonoPrep device and technology, 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 surgical 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,
product evaluations, 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 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 Six Months Ended
June 30, June 30,
2005 2004 2005 2004
Product revenue $32,350 $2,500 $148,403 $2,500
Cost of product revenue 16,706 801 96,859 801
Gross profit 15,644 1,699 51,544 1,699
Operating Expenses:
Research and development 1,039,495 662,617 1,945,796 1,338,524
Selling, general and
administrative 784,967 566,202 1,253,775 1,093,696
Total operating
expenses 1,824,462 1,228,819 3,199,571 2,432,220
Loss from operations (1,808,818)(1,227,120) (3,148,027) (2,430,521)
Interest income 59,451 17,528 107,480 31,757
Interest expense (2,005) - (2,005) -
Net loss (1,751,372)(1,209,592) (3,042,552) (2,398,764)
Accretion of dividend and
beneficial conversion
feature on Series A
Convertible Preferred
Stock (1,463) (197,539) (2,910) (410,973)
Net loss applicable to
common shareholders $(1,752,835)$(1,407,131)$(3,045,462)$(2,809,737)
Net loss per common share,
basic and diluted $(0.08) $(0.09) $(0.14) $(0.19)
Basic and diluted weighted
average common shares
outstanding 22,192,296 16,146,758 22,162,144 14,428,905
SONTRA MEDICAL CORPORATION
Consolidated Balance Sheets
As of
June 30, December 31,
2005 2004
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $832,618 $2,565,244
Short term investments 6,000,000 6,950,000
Accounts receivable - 16,821
Legal settlement receivable - 250,000
Inventory, net of reserve for
obsolescence 187,443 152,642
Prepaid expenses and other current
assets 84,585 69,492
Total current assets 7,104,646 10,004,199
Property and Equipment, at cost:
Computer equipment 217,535 206,970
Office and laboratory equipment 608,854 492,377
Furniture and fixtures 14,288 14,288
Manufacturing equipment 192,521 182,210
Leasehold improvements 177,768 174,698
1,210,966 1,070,543
Less-Accumulated depreciation and
amortization (739,970) (655,242)
Net property and equipment 470,996 415,301
Other Assets:
Restricted Cash 29,248 38,997
Other Assets 2,000 2,000
Total other assets 31,248 40,997
Total assets $7,606,890 $10,460,497
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $276,058 $358,530
Current portion of note payable 55,437 -
Accrued expenses 435,093 759,051
Total current liabilities 766,588 1,117,581
Note Payable, net of current portion 172,074 -
Commitments
Stockholders' Equity:
Series A Convertible Preferred Stock,
$0.01 par value, authorized 7,000,000
shares, issued and outstanding 73,334
shares at June 30, 2005 and December 31,
2004 (preference in liquidation of
$79,201) 79,201 76,291
Common stock, $0.01 par value, authorized
60,000,000 shares, issued and
outstanding 22,193,329 shares at
June 30, 2005 and 21,935,732 shares
at December 31, 2004 221,933 219,358
Additional paid-in capital 32,880,399 32,674,740
Deferred stock-based compensation (88,192) (244,912)
Accumulated deficit (26,425,113) (23,382,561)
Total stockholders' equity 6,668,228 9,342,916
Total liabilities and stockholders'
equity $7,606,890 $10,460,497
SOURCE Sontra Medical Corporation
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Related links:
http://www.sontra.com
CONTACT:
Sean Moran, Chief Financial Officer of Sontra
Medical Corporation, +1-508-530-0334
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