Echo Therapeutics, Sontra deal

SONT acquired Echo for 6.3 million shares worth about $14.9 million based on SONT's close of $2.39 on Sept. 14, the last trading day before the deal was announced. SONT shareholders will own about 65% of the new company, and Echo shareholders will own 35%. The merged company will keep Echo's name and will develop and market improved versions of FDA-approved products under section 505(b)(2) of the Food, Drug and Cosmetic Act using SONT's Ultrasonic Mediated Skin Permeation technology and Echo's Azone dermal penetration technology. The newco will be located in Philadelphia, Penn.

SONT markets SonoPrep, an ultrasound-mediated skin permeation device as an adjunct to local dermal anesthetics prior to needle insertion or IV procedure. Last summer, Echo submitted a complete response to FDA for Durhalieve, a triamcinolone-based product that uses Azone technology to treat corticosteroid responsive dermatoses. The merged company also has seven candidates in its pipeline for eight indications. ...