Sontra Secures Rights for Worldwide Hospital Intensive Care Market
FRANKLIN, Mass., Dec. 15 /PRNewswire-FirstCall/ -- Sontra Medical
Corporation (Nasdaq: SONT) announced today that it has amended its license
agreement with the Diabetes Care Division of Bayer Healthcare LLC. Under the
terms of the amended license agreement, Sontra will have worldwide co-
exclusive rights to develop and market Sontra's continuous transdermal glucose
monitoring system utilizing the SonoPrep ultrasonic skin permeation technology
for the hospital intensive care unit (ICU) market. In exchange, Sontra has
agreed to reduce Bayer's milestone payment to Sontra due upon Bayer's
completion of the first phase of product development to $2.0 million, and will
pay Bayer a royalty equal to 1% of Sontra's net product sales in the hospital
ICU market.
"Both companies understand the usefulness of Sontra's technology in
critical care medicine and appreciate the narrow window of opportunity to
develop a product for that market segment," stated Thomas W. Davison, Sontra's
President and Chief Executive Officer. "Sontra is best positioned to
accelerate the development and commercialization of Sontra's continuous
glucose monitor for the ICU, as we have completed the first prototypes and
expect to begin human clinical studies in early 2006 at leading Boston
hospitals. Members of our Clinical Advisory Board will serve as principal
investigators. More importantly, we are on track to complete product
development of the SonoPrep skin permeation and glucose sensing technology for
the ICU by the end of 2006."
"Sontra's continuous glucose monitor has shown promise in pilot clinical
trials in patients and the Sontra management team has identified a market
opportunity for this technology in the hospital ICU market," stated Sandra E.
Peterson, President of Bayer HealthCare's Diabetes Care Division. "We are
pleased to have advanced our relationship with Sontra."
Conference Call Information
Sontra will host a live conference call and listen-only Webcast today,
December 15, 2005 at 11 a.m. ET to discuss the amendment to the License
Agreement and to report on the status of the continuous transdermal glucose
monitoring technology and development plans.
To participate in the conference call, please dial: 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 is being developed for several billion
dollar market opportunities, including continuous glucose monitoring and the
transdermal delivery of large molecule drugs and vaccines. Sontra is
currently marketing the SonoPrep device and procedure tray for use with
topical lidocaine to achieve rapid (within five minutes) skin anesthesia.
Investor Relations Contacts:
Sontra Medical Corporation
Sean Moran, Chief Financial Officer
508-530-0334
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; Sontra's expected ability to
develop, market and sell the continuous glucose monitoring system in the
hospital intensive care market; the expected development and growth of the
hospital intensive care market; the expected timing and results of clinical
studies of the continuous glucose monitoring system in the hospital intensive
care market; Sontra's expected technological advances to the continuous
glucose monitoring system; the expected product development efforts by Bayer
and timing of the receipt of the $2.0 million milestone payment from Bayer;
the expected market opportunities, distribution and market acceptance of the
SonoPrep device and technology, the expected size of the markets for the
SonoPrep device and technology, 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: our technology is new and we may experience adverse
results in research collaborations, product development, clinical trials,
product evaluations, commercialization efforts, product distribution and
market acceptance; markets for our products may develop slower than expected,
or not at all; our sales cycle is lengthy and we are still developing sales
and marketing strategies which may or may not prove effective; the SonoPrep
device may not prove effective in connection with diagnostics, vaccine
delivery, glucose monitoring and/or transdermal drug delivery; Sontra's
receipt of the $2.0 million milestone payment is dependent on Bayer's
successful product development efforts, which may not occur on a timely basis,
if at all; Bayer has retained co-exclusive rights to the hospital ICU market
and may compete with Sontra in such market; we may experience difficulties or
delays in obtaining regulatory approvals to market products resulting from
development efforts or difficulties or delays associated with sources of
regulatory-approved transdermal drugs and vaccines; failure to obtain and
maintain patent protection for discoveries or commercial limitations imposed
by patents owned or controlled by third parties would have an adverse effect
on us; we depend upon strategic partners and third-party distributors to
develop, commercialize, market and sell products based on our work; and we
require substantial additional 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.
SOURCE Sontra Medical Corporation
 back to top
Related links:
http://www.sontra.com
CONTACT:
Sean Moran, Chief Financial Officer of Sontra
Medical Corporation, +1-508-530-0334
|
