ORLANDO, Fla., Oct. 1, 2008 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc. today announced that it has issued a second quarter 2008 research update for Echo Therapeutics, Inc. (OTCBB:ECTE), a medical device and specialty pharmaceuticals company focused on next-generation transdermal continuous glucose monitoring (tCGM) systems for people with diabetes as well as improved topical reformulations of FDA-approved products.
Harry Russell, MBA, RedChip Research Analyst, reported:
"Although we believe that ECTE should have a newsworthy remainder of the year, we now feel that it has run into some liquidity issues which must be dealt with. Given the existing cash balance coupled with the Company's monthly burn rate, a deal either with a pharmaceutical company or a financial entity must happen in short order as ECTE is definitely going to run into liquidity problems if it has not already.
"On the positive side, ECTE is attempting to address an enormous and underserved market in developing treatments for diabetes which has become a major epidemic in the United States affecting nearly 24 million people. A solution such as Echo's should still be entertained by partners regardless of economic environment. Further, as a transdermal delivery vehicle, AzoneTS can move wasted resources off the shelf of pharmaceutical companies. As this can revitalize sales with little capital outlay and clinical expense, this should also be entertained by pharmaceutical companies regardless of the economic conditions," he continued.
"The bottom line is that ECTE is better positioned than most and can monetize some of its clinical programs even in this environment. We concede that with a stronger balance sheet the Company could get better economics, but we also note that the small-capitalization space should currently be in survival mode and very few companies have the financial flexibility that Echo currently has. We reiterate our 'Speculative Buy' recommendation of Echo Therapeutics for investors who understand the economic turmoil currently underway and the increasing risk of the small-capitalization specialty pharmaceutical space. We believe the shares currently offer a favorable risk/reward and believe the Company should be able to weather this storm. However, given the times, we have reduced our 12-month price target from $5.00 to $3.75 per share," Russell concluded.
To receive a complimentary copy of the RedChip Visibility Research Report for ECTE, please visit: http://www.redchip.com/visibility/about.asp?page=vreport&reportid=137&from=10012008pr.
About RedChip Companies, Inc.
RedChip Companies is an international, small-cap research and financial public relations firm with offices in Orlando, Florida; Shanghai; and Paris, with affiliates in Atlanta and New York. RedChip delivers concrete, measurable results for its clients through its extensive national and international network of small-cap institutional and retail investors. RedChip has developed the most comprehensive platform of products and services for small-cap companies, including: RedChip Research(tm), Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Internet TV(tm), and RedChip Radio(tm). To learn more about RedChip's products and services please visit: http://www.redchip.com/visibility/productsandservices.asp.
"Discovering Tomorrow's Blue Chips Today"(tm)
The RedChip Companies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2761
Disclosure
None of the profiles issued by RedChip Companies, Inc. constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. Echo Therapeutics, Inc. paid RedChip Visibility, a division of RedChip Companies, Inc., $50,000 for RedChip Visibility Program services, which included the preparation of this equity research report.
To the fullest extent permissible under applicable law, RedChip Companies, Inc. will not be liable to you or anyone else for the quality, accuracy, completeness, reliability, or timeliness of this information.