MASSDEVICE ON CALL — Echo Therapeutics (NSDQ:ECTE) drops a few points after announcing plans for wide-scale cost-reductions that include layoffs for 1/3 of the company’s staff.
Echo’s looking to cut some costs as laid out by new executive chairman & CEO Robert Doman, who stepped up to steer the ship after the sudden departure of former chairman, president & CEO Dr. Patrick Mooney. The affected employees were notified at the end of last month, according to a company statement.
"It’s important to recognize this shift as part of a continuing effort to focus our efforts and resources on our short-term corporate objectives in order to drive future shareholder value," Doman said in prepared remarks. "However, these reductions were essential to better align ongoing expenses with our short-term objectives and position Echo for future growth."
Echo plans to initiate other measures to cut both external spending as well as internal costs, hoping to decrease its 4th-quarter "burn rate" by about 35-40% compared to the 1st 3 quarters of the year, according to a company statement.
The company’s also continuing enrollment in a European clinical trial of its Symphony continuous glucose monitor, a bid for CE Mark approval, although unexpected delays have pushed back trial deadlines by a quarter. Echo plans to apply for CE Mark approval late this year.
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