Print
Email
Print Edition StoriesWednesday, July 29, 2009
Echo Therapeutics gets $2M in rescue funding
By Mass High Tech Staff
MHT's Marc Songini: Mass. bio firms prep for lifting of stem cell ban
Streaming Video: Mass High Tech All-Stars Thought Leadership Roundtable
Medical technology company Echo Therapeutics Inc. got its wish, landing a $2 million equity financing round, according to federal documents.
The new financing, which came from a single investor that was not named in the filing with the U.S. Securities and Exchange Commission, comes on the heels of a $2 million short-term loan the company took last month from Platinum Montaur Life Sciences LLC. That loan was due at the end of June, and Franklin-based Echo officials said at the time they needed another $2 million to keep operations going.
At the end of March, Echo had only $56,000 in cash and a working capital deficit of nearly $5 million. It also had been labeled with a “going concern” opinion from the firm auditing its financial filings, meaning the company may not have the financial resources to continue operating. The company posted a net loss of $1.3 million in the first quarter.
In June, Echo licensed its needleless glucose-monitoring technology to South Korea-based Handok Pharmaceuticals Co. Ltd. for $600,000 and royalties and other payments. Handok was given the rights to develop, market, sell and distribute Echo’s Symphony transdermal continuous glucose monitoring (TCGM) system for use in medical facilites and the home.
Symphony is a patented skin ablation-control technology intended to allow for quick and painless removal of the outermost layer of the skin for transdermal drug delivery and glucose management.
Echo, originally known as Sontra Medical Corp., is led by chairman and CEO Patrick T. Mooney, who joined Echo in September 2007 as a result of the merger of Sontra and then privately-held Echo Therapeutics Inc. of North Carolina. Its board includes MIT professor and entrepreneur Robert S. Langer.
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
RSS Feeds
