Echo Therapeutics, Inc.
) rose 10% since the announcement of its submission of Conformite
Europeenne (CE) Mark Technical File in order to obtain the market
approval for its Symphony continuous glucose monitoring (CGM)
system. According to a study, Symphony CGM is capable of
monitoring glucose levels as it did on 32 patients in critical
care units at four hospitals.
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CE Marking implies a medical device's compliance with European
Union (EU) legislation and directives with respect to safety,
health, environmental and consumer protection. It is necessary
for commercialization in countries in the EU. ECTE expects to
receive the CE Marking in the second quarter of the year.
Last month, Echo Therapeutics reached a collaboration agreement
with Hong Kong-based Medical Technologies Innovation Asia (MTIA),
Ltd., through which its Symphony continuous glucose monitoring
(CGM) system will be developed, manufactured, marketed and
distributed in China, Hong Kong, Macau and Taiwan.
The collaboration agreement includes a license arrangement and
equity investment in ECTE. Under the licensing, MTIA will bear
the development, manufacturing and marketing costs for bringing
Symphony CGM System in the Chinese market. MTIA has established
sales channels in more than 1,000 hospitals across the China
The global market for glucose monitoring systems is measured at
roughly $10 billion. The glucose monitoring devices include blood
glucose meters and test strips which provide single blood glucose
Based in Philadelphia, PA, Echo Therapeutics is a medical device
company aimed at developing enhanced skin permeation technology
Prelude SkinPrep System, and non-invasive, wireless, and glucose
monitoring system. ECTE stated that it will apply for market
approval of Symphony CGM system in the European Union in the
fourth quarter of this year.
ECTE posted a narrower loss of 49 cents per share for the third
quarter of the year compared with $1.07 in the comparable quarter
of 2012 as well as the Zacks Consensus Estimate of 56 cents. The
decrease in loss was attributable to lower shares outstanding at
the end of the quarter. Net loss, in fact, increased 22.8% to
$5.2 million from $4.3 million a year ago.
Revenues in the quarter slid 27.1% to $22.6 thousand,
significantly lower than the operating expenses of $4.95 million.
This resulted in operating loss of $4.9 million compared with
$3.6 million in the third quarter of 2012.
Echo Therapeutics' research and development expenses rose 28.8%
to $2.8 million from $2.1 million in the third quarter of 2012.
The increase was attributable to higher development, regulatory
and clinical expenses, as well as manufacturing preparation
Currently, ECTE retains a Zacks Rank #2 (Buy). Other players in
the medical instruments industry that are also worth a look
Natus Medical Inc.
). Natus Medical and DexCom carry a Zacks Rank #1 (Strong Buy)
while AngioDynamics carries a Zacks Rank #2 (Buy).