I go back a long way with the diabetes space, and glucose monitoring
in particular, as that was a big part of my coverage group back in the
sell-side research days. During that time, there was the occasional MiniMed (acquired by Medtronic (MDT)) or TheraSense (acquired by Abbott Labs (ABT)), but quite a few Integs for every one of those successes. Today, Echo Therapeutics (ECTE)
is grinding along, hoping that its Symphony tCGM System vaults it into
the winner's circle with existing glucose monitoring companies like
Medtronic, Abbott, and DexCom (DXCM) and not into the scrap heap of failed testing companies.
I
have very mixed feelings about this stock. The company has handled its
financing needs with about as little finesse as possible, but the
company has swapped out the CEO who oversaw those funding rounds. The
company's device seems accurate enough to garner FDA approval, but the
FDA has a habit of moving the bullseye on companies in this space, and I
don't really have a good answer for how Echo will compete against the
entrenched players and position the Symphony as the go-to system. All of
that suggests to me that this is a binary outcome with a very uncertain
future.
Follow this link to continue:
Echo Therapeutics Facing Major Execution Risks In A Very Competitive Market
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