New entity gains complementary suite of transdermal drug delivery platforms.
Sontra Medical and Echo Therapeutics merged to form a publicly held company focused on transdermal therapeutics and diagnostics. The combined entity will operate under the name Echo Therapeutics.
“This merger is a timely combination of two late-stage and powerful transdermal drug penetration technologies,” remarks Patrick Mooney, M.D., formerly with Echo and now CEO of the new firm. Michael Wigley, Sontra’s chairman adds, “We entered into this merger based on the strategic rationale that a second and complementary platform technology would expand our opportunities for long-term growth.”
Sontra acquired all of the outstanding shares of Echo common stock in exchange for an aggregate of 6,250,000 shares of Sontra common stock. The stockholders of Sontra and former stockholders of Echo hold approximately 65% and 35% of the combined company’s outstanding common stock, respectively.
The newly formed Echo Therapeutics will have corporate offices in Philadelphia and R&D facilities in Franklin, MA, and Durham, NC. It will focus on improving formulations of specialty pharmaceuticals and new applications of transdermal diagnostics. The company reports having a late-stage pipeline, with one FDA-approved product, a second candidate covered by a pending NDA, and seven pipeline programs in development covering eight indications.
