Completion of Strategic Acquisition Reflected in Q3 Results
FRANKLIN, Mass., Nov. 20 /PRNewswire-FirstCall/ -- Echo Therapeutics,
Inc. (OTC Bulletin Board: ECTE) today announced financial results for the
third quarter ended September 30, 2007. For the quarter ended September 30,
2007, net loss was $8,677,000 or $.70 per share, compared to $1,390,000 or
$.49 per share, for the same period in 2006. For the nine months ended
September 30, 2007, net loss was $10,278,000, or $1.05 per share, compared
to $4,229,000 or $1.60 per share, for the same period in 2006. Net loss for
the three and nine months ended September 30, 2007 included purchased
research and development of $6,556,000 in connection with the strategic
acquisition of Echo Therapeutics, Inc. as described in more detail below.
Cash and short term investments totaled $2,218,000 at September 30,
2007, compared to $559,000 at December 31, 2006.
Recent Highlights
The quarter was highlighted by the merger of Sontra Medical Corporation
with Echo Therapeutics, Inc. and the surviving Company's name change to
Echo Therapeutics, Inc. The merger created a dual platform-enabled
transdermal therapeutics and diagnostics company focused on multiple large
markets for improved formulations of specialty pharmaceuticals and new
applications of next generation transdermal diagnostics for diabetes
management and hospital intensive care markets. Echo Therapeutics is now
marked by the following key attributes and capabilities:
-- Two transdermal drug penetration technologies, with emphasis on
development and commercialization advanced reformulations of
well-established, FDA-approved products using Echo's AzoneTS dermal
penetration enhancement technology in concert with a 505(b)(2)
regulatory strategy and development of a next generation wireless,
needle-free, continuous transdermal glucose monitor system for the
diabetes home use and hospital intensive and critical care markets;
-- Diverse, late-stage specialty therapeutics and diabetes management
device pipeline with one FDA-approved product, a therapeutic
dermatology product candidate covered by a pending NDA filed with the
FDA and ten (10) product development programs;
-- Flexible, strategic partnership with Cato Research, an established
global contract research organization (CRO), to maximize development
and regulatory efficiencies; and,
-- Expertise from Cato Research to expand the reach of ongoing late-stage
clinical development programs in continuous transdermal glucose
monitoring.
About Echo Therapeutics
Echo Therapeutics is a dual platform-enabled, specialty therapeutics
and diagnostics company developing an extensive pipeline of advanced
topical reformulations of FDA-approved products and a portfolio of next
generation wireless, needle-free continuous transdermal glucose monitor
(CTGM) systems for the diabetes home use and hospital intensive and
critical care markets. Echo is also developing a broad portfolio of
advanced topical reformulations of well-established, FDA-approved products
using its proprietary AzoneTS(TM) dermal penetration technology. Echo has
submitted a New Drug Application (NDA) to the FDA for the approval of its
lead AzoneTS-based product, Durhalieve(TM), for the treatment of
corticosteroid responsive dermatoses. Echo's next generation CTGM system
leverages its FDA-approved SonoPrep(R) ultrasound-mediated skin permeation
technology platform.
SonoPrep is a registered trademark of Echo Therapeutics, Inc.
Any statements contained in this press release that do not describe
historical facts may constitute forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995. Any
forward-looking statements contained herein are based on current
expectations, but are subject to a number of risks and uncertainties. The
factors that could cause actual future results to differ materially from
current expectations include, but are not limited to risks and
uncertainties relating to our ability to develop, market and sell
pharmaceutical or diagnostic products based on our AzoneTS and CTGM
technologies, including AzoneTS-based Durhalieve for corticosteroid
responsive dermatoses and the use of our SonoPrep ultrasound-mediated skin
permeation technology platform with our CTGM system for the diabetes home
use and hospital intensive and critical care markets; the success of our
AzoneTS and CTGM business, research, development, and regulatory approval,
marketing and distribution plans and strategies; and, our ability to raise
sufficient capital in the future to fund our research and development
programs, commercialize our product candidates and achieve profitability.
These and other factors are identified and described in more detail in our
filings with the SEC, including, without limitation, our respective annual
reports on Form 10-KSB for the year ended December 31, 2006, our most
recent quarterly reports on Form 10-QSB, and our current reports on Form
8-K. Echo Therapeutics, Inc. does not undertake to update these forward-
looking statements.
Investor Relations Contacts:
Patrick T. Mooney, M.D., CEO
508-530-0329
pmooney@echotx.com
10 Forge Parkway
Franklin, MA 02038, USA
Tel: 1+ 877-476-6878
Fax: 1+ 508-553-8760
http://www.echotx.com
All rights reserved worldwide.
Echo Therapeutics, Inc.
(Formerly Sontra Medical Corporation)
Consolidated Balance Sheets
As of,
September 30, December 31,
2007 2006
(Unaudited)
Assets:
Current Assets:
Cash and cash equivalents $2,218,246 $559,017
Inventory, net of reserve for
obsolescence - 1,556
Prepaid expenses and
other current assets 74,484 12,994
Total current assets 2,292,730 573,567
Property and Equipment, at cost:
Computer equipment 248,272 245,694
Office and laboratory equipment 590,926 590,926
Furniture and fixtures 14,288 14,288
Manufacturing equipment 197,888 197,888
Leasehold improvements 177,768 177,768
1,229,142 1,226,564
Less-Accumulated depreciation and
amortization (1,105,441) (1,017,051)
Net property and equipment 123,701 209,513
Other Assets:
Restricted cash 10,250 19,949
Deposits and other assets 2,000 2,000
Intangible assets, net 10,420,000 -
Total other assets 10,432,250 21,949
Total assets $12,848,681 $805,029
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $363,057 $45,817
Deferred revenue 8,333 45,833
Current portion of notes payable,
net of unamortized discount 55,208 89,808
Accrued expenses 488,650 103,365
Total current liabilities 915,248 284,823
Notes Payable, net of current portion - 54,508
Commitments
Stockholders' Equity
Series A Convertible Preferred Stock,
$0.01 par value, authorized
7,000,000 shares, issued and
outstanding no shares at
September 30, 2007 and 73,334
shares at December 31, 2006 - 76,291
Common stock, $0.01 par value,
authorized 60,000,000 shares,
issued and outstanding
17,707,679 shares at September
30, 2007 and 2,776,192 shares
at December 31, 2006 177,079 27,762
Additional paid-in capital 56,494,899 34,822,306
Accumulated deficit (44,738,545) (34,460,661)
Total stockholders' equity 11,933,433 465,698
Total liabilities and
stockholders' equity $12,848,681 $805,029
Echo Therapeutics, Inc.
(Formerly Sontra Medical Corporation)
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
Revenue:
Product revenues $ - $10,679 $12,120 $37,619
Licensing revenue 12,500 12,500 37,500 37,501
Total revenue 12,500 23,179 49,620 75,120
Operating Expenses:
Cost of product
revenue - 9,445 1,556 61,734
Research and
development 323,078 803,754 923,172 2,489,996
Purchased research
and development 6,556,048 - 6,556,048 -
Selling, general
and administrative 1,767,587 622,518 2,812,002 1,843,534
Total operating
expenses 8,646,713 1,435,717 10,292,778 4,395,264
Loss from operations (8,634,213) (1,412,538) (10,243,158) (4,320,144)
Other income (Expense):
Interest income 21,657 28,604 35,563 109,687
Interest expense (64,131) (4,469) (70,289) (14,439)
Other income, net (42,474) 24,135 (34,726) 95,248
Net loss (8,676,687) (1,388,403) (10,277,884) (4,224,896)
Accretion of dividend on
Series A Convertible
Preferred Stock - (1,479) (483) (4,389)
Net loss applicable
to common
shareholders $(8,676,687) $(1,389,882) $(10,278,367) $(4,229,285)
Net loss per common share,
basic and diluted $(0.70) $(0.49) $(1.05) $(1.60)
Basic and diluted weighted
average common shares
outstanding 12,438,201 2,839,201 9,771,183 2,640,691
SOURCE Echo Therapeutics, Inc.
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Related links:
http://www.sontra.com
CONTACT:
Patrick T. Mooney, M.D., CEO of Echo
Therapeutics, Inc., +1-508-530-0329, pmooney@echotx.com
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