Echo Therapeutics, Inc. Announces 2015 Financial Results

ISELIN, N.J., March 30, 2016 /PRNewswire/ -- Echo Therapeutics, Inc. (NASDAQ: ECTE), a medical device company focused on non-invasive continuous glucose monitoring (CGM) and associated technologies, today announced its financial results for the year ended December 31, 2015.  Echo's Annual Report on Form 10-K, as filed with the SEC, may be accessed on the SEC's website, www.sec.gov.

Fiscal Year 2015 Financial Results

Echo's net loss for the fiscal year 2015 was $22.2 million, or ($1.98) per share, compared to $15.3 million, or ($1.24) per share during 2014. The $6.9 million increase in net loss was a result of the second quarter 2015 $9.625 million impairment charge on the Azone-TS-based technology intangibles, offset by decreases in research and development (R&D) and selling, general and administrative (S,G&A) expenses. R&D expenses were $2.8 million for fiscal year 2015 compared to $4.6 million for fiscal year 2014. The decrease in research and development expenses was a function of the operating cash available to the Company. S,G&A expenses were $4.3 million for fiscal year 2015 compared to $7.4 million for fiscal year 2014. The decrease in S,G&A expenses was primarily due to decreases in proxy-related fees and salaries.

On January 29, 2016, Echo entered into a Securities Purchase Agreement with certain institutional and other accredited investors for the sale of up to $5,145,000 of secured convertible notes and warrants to purchase common stock in two tranches. The initial closing of $1,787,000 occurred on January 29, 2016.  Certain previously issued short-term bridge notes were surrendered as payment of the initial closing purchase price. The second closing of $3,358,000 is subject to shareholder approval at a Special Shareholders Meeting to be held on April 14, 2016.

Recent Corporate Highlights:

• In December 2015, Elazer Edelman, M.D., Ph.D. was appointed to Echo's Board of Directors. Currently a professor at MIT and Harvard Medical School, Dr. Edelman is widely recognized for his vision, leadership and significant, long-term contribution to the advancement of technological innovation. Dr. Edelman brings to Echo Therapeutics over 30 years experience in facilitating medical inventions and clinical implementation.
• In February 2016, Echo Therapeutics received notice that its patent application entitled "System and Method for Analyte Sampling and Analysis with Hydrogel" issued as Canadian Patent No. 2,584,699 and will expire in 2025. Echo also recently received notice that its patent application entitled "Transdermal Analyte Monitoring Systems and Methods for Analyte Detection" was issued as Hong Kong Patent No. HK1143052 and will expire in 2028. Additionally, a notice of allowance was received for Japanese patent application 2013-250328, entitled "Sensor Assembly for an Analyte Monitoring System with Hydrogels and a Method for Monitoring an Analyte by Using the Sensor Assembly." These patents join an already extensive U.S. and foreign intellectual property portfolio.

"The additional $3.4 million from the closing of the second tranche of the financing will allow us to achieve our targeted 2016 milestones and complete the product development and clinical testing of our NextGen CGM technology," said Scott W. Hollander, Echo's President and CEO.  "I look forward to providing an update on our R&D team's recent visit to China and the initial clinical testing of our CGM products produced at MTIA's manufacturing facilities 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. OlimpioDirector, Investor Relations and Corporate Communications(732) 549-0128

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SOURCE Echo Therapeutics, Inc.