Shares of Echo Therapeutics, Inc. (ECTE) soared nearly 73% to $4.65 yesterday following the release of positive results of its study on wireless glucose monitoring system, Symphony CGM. The study revealed that Symphony is capable of monitoring glucose levels as it did on 32 patients in critical care units at four hospitals.
The Continuous Glucose-Error Grid Analysis showed that readings in Symphony CGM were 97.9% accurate and 1.8% were benign errors, with a combined A+B value of 99.7%. The glucose values range was 49 to 324 mg/dL.
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.
Echo Therapeutics 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.
The company’s 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 costs.
Currently, ECTE retains a Zacks Rank #2 (Buy). Other preferable stocks from the medical instruments industry include Natus Medical Inc. (BABY), Cynosure, Inc. (CYNO), and AngioDynamics Inc. (ANGO). Natus Medical carries a Zacks Rank #1 (Strong Buy) while both Cynosure and AngioDynamics carry a Zacks Rank #2 (Buy).
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