Echo Therapeutics, Inc. Announces Second Quarter 2016 Financial Results
ISELIN, N.J., Aug. 12, 2016 /PRNewswire/ -- Echo Therapeutics, Inc. (OTCQB: ECTE), a medical device company focused on non-invasive continuous glucose monitoring (CGM) and associated technologies, today announced its financial results for the quarter ended June 30, 2016. Echo's Quarterly Report on Form 10-Q, as filed with the SEC, may be accessed on the SEC's website, www.sec.gov.
Second Quarter 2016 Financial Results
Echo's net loss to common shareholders for the second quarter of 2016 was $9.4 million, or ($0.82) per share, compared to $10.8 million, or ($0.97) per share, for the second quarter of 2015. The operating loss for the second quarter of 2016 was $1.5 million compared to $12.3 million for the second quarter of 2015. The 2015 second quarter operating loss was significantly impacted by a one-time $9.6 million impairment charge for the Company's Azone intangibles. Research and development (R&D) expenses were $0.7 million for both the second quarter of 2016 and 2015. Selling, general and administrative (S,G&A) expenses were $0.8 million during the second quarter of 2016 compared to $1.5 million during the second quarter of 2015. The decrease in S,G&A expenses was primarily due to a decline in legal fees.
Recent Corporate Highlights:
- On May 3, 2016, Echo closed the second tranche of the January 29, 2016 Securities Purchase Agreement with certain institutional and other accredited investors and issued Notes in an aggregate principal amount of $3,361,620.
- In June 2016, Echo began stand-alone and integrated testing of its NextGen CGM prototype components. Rigorous testing of each component independently and as an integrated system will continue as the Company optimizes its system in preparation for future clinical and regulatory trials. Echo began hardware and software testing of the NextGen Exfoliator and the Bluetooth transmitter.
- In June 2016, Echo received Institutional Review Board (IRB) approval for a new clinical protocol. The new protocol allows expanded testing of the Company's CGM system and now permits Echo to recruit both pediatric and adult subjects for its internal and external studies.
- In June 2016, Echo selected a Clinical Research Organization (CRO) for the development of a comprehensive regulatory and clinical strategy for its CGM system. The CRO has a demonstrated track record of successfully designing and managing clinical trials.
- A new patent entitled "Transdermal Analyte Monitoring System and Methods for Analyte Detection" was granted by Japan (Application number 2013-169786) covering Echo's system and methods for transdermal monitoring of analytes, including glucose and other substances. The patent describes a system utilizing a sensor and a hydrogel with a specific formulation that work together to allow detection of glucose, lactate or other substances.
"Progress on the development of our NextGen CGM continued during the second quarter with the selection of our CRO and the start of stand-alone and integrated testing of the system components," said Scott W. Hollander, Echo's President and CEO. "We look forward to providing an update of additional advancements and the regulatory and commercialization plan in China in the near term."
About Echo Therapeutics
Echo Therapeutics is developing its non-invasive, wireless, continuous glucose monitoring (CGM) system. A significant opportunity exists for the Company's CGM to be used in the outpatient diabetes market and in the fitness, weight loss and personal lifestyle wearable-health space. A longer-term opportunity also exists in the hospital settings. Echo developed its needle-free skin preparation device as a platform technology that allows for enhanced skin permeation enabling extraction of analytes, such as glucose, and enhanced delivery of topical pharmaceuticals.
Cautionary Statement Regarding Forward Looking Statements
The statements in this press release that are not historical facts may constitute forward-looking statements that are based on current expectations and are subject to risks and uncertainties that could cause actual future results to differ materially from those expressed or implied by such statements. Those risks and uncertainties include, but are not limited to, risks related to regulatory approvals and the success of Echo's clinical studies, the safety and efficacy of Echo's CGM System, the failure of future development and preliminary marketing efforts related to Echo's CGM System, Echo's ability to secure additional commercial partnering arrangements, risks and uncertainties relating to Echo's and its partners' ability to develop, market and sell Echo's CGM System, the availability of substantial additional equity or debt capital to support its research, development and product commercialization activities, and the success of its research, development, regulatory approval, marketing and distribution plans and strategies, including those plans and strategies related to its CGM System. These and other risks and uncertainties are identified and described in more detail in Echo's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2015, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K. Echo undertakes no obligation to publicly update or revise any forward-looking statements.
For More Information:
Christine H. Olimpio
Director, Investor Relations and Corporate Communications
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SOURCE Echo Therapeutics, Inc.