Friday, May 22, 2015

Firm developing wearable health monitors leaves Philadelphia for New Jersey

by John George Philadelphia Business Journal
Echo Therapeutics’ tumultuous four years in Philadelphia are over.
The formerly Center City-based medical device company has moved its corporate headquarters from its 7,900-square-foot-office at 8 Penn Center to a 2,800-square-foot office in Iselin, N.J.

• Saw its former CEO Patrick Mooney take of “leave of absence” and never return to the company

• Twice cut its workforce, first by 33 percent, or about 12 people, then by another 10, to conserve cash

• Suspended operations temporarily while it sough new funding sources

• Engage in a lengthy battle with largest investor, Platinum Management, that New York-based Plantinum ended up winning — which led to a new management team and a new board of directors being installed,

Earlier this month, Echo signed a lease for a 10,000-square-foot research and development facility in Littleton, Mass. The facility will replace the 37,000-square-foot research center it had in Franklin, Mass.

Echo expects to move into the new facility on or around July 1.
According to documents filed with the Securities and Exchange Commission, Echo ended last year with a staff of seven. It has since grown to 18 full-time employees.
Echo relocated its corporate offices from Franklin to Philadelphia in 2011. At the time, the company said the move was being made to accommodate expansion plans.
The company spent its four years in Philadelphia developing a non-invasive, wireless, continuous glucose monitoring system for hospitalized patients and for use by diabetics. The company’s new management is still working on the glucose monitoring system while also attempting to expand the use of Echo’s technology to the wearable fitness, weight loss and personal lifestyle product market.

In the company’s quarterly report issued last week, Scott W. Hollander, Echo’s president and CEO, stated the company was making progress on its product development efforts. Hollander, who was named CEO of Echo in December, noted the company has “implemented a number of cost reduction measures, including moving our offices to right-sized and less expensive facilities,” that won’t diminish Echo’s ability to execute its short-term and long-term plans.
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