Echo Therapeutics drums up $3 million

November 13, 2009 by MassDevice staff

Echo Therapeutics Inc. (ECTE) drummed up about $3 million in a private stock sale.

The Franklin, Mass.-based company, which is developing a non-invasive, wireless transdermal continuous glucose monitoring system, said it sold roughly 2.37 million share for $1.25 each, and issued about 2.2 million warrants with a $2.00 exercise price.

It's the latest fundraising effort for Echo, which has only been able to generate revenue through small licensing deals since becoming a medical device manufacturer and moving to Massachusetts four years ago. In addition to developing monitors with wireless and around-the-clock capabilities, Echo currently is working on new drug to treat skin disease.

In July the company said it was looking to raise $8 million in additional capital. Overall, Echo has burned through more than $57 million trying to bring its products to market, according to regulatory filings.

Chairman and CEO Patrick Mooney said the company will use the new cash to move toward commercializing its Prelude SkinPrep and Symphony tCGM systems, expected some time next year.

A clinical trial of the Symphony glucose monitoring system is expected to conclude by the fourth quarter.

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