----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

----

**FORM      10-Q**

**(Mark      One)**

**QUARTERLY        REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF        1934**

**For      the quarterly period ended March 31, 2007**

**or**

**TRANSITION        REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE **
**SECURITIES        EXCHANGE ACT OF 1934**

**For      the transition period from _______________ to      _______________**

**Commission      file number 000-51596**

**ECHO      HEALTHCARE**

**ACQUISITION      CORP.**

**(Exact      name of Registrant as specified in its charter)**

|  **Delaware**                                  |   |   **56-2517815**                                                       |
|-----------------------------------------------------|--------|----------------------------------------------------------------------------------|
| ** (State                  of Incorporation)** |   |  **(I.R.S.                  Employer Identification                  No.)** |

**8000      Towers Crescent Drive, Suite 1300, Vienna, VA 22182**

**(Address      of principal executive offices)**

**(703)      448-7688**

**(Telephone      number, including area code)**

**Indicate      by check mark whether      the registrant (1) has filed all reports required to be filed by Section 13      or      15(d) of the Securities Exchange Act of 1934 during the preceding 12 months      (or      for such shorter period that the registrant was required to file such reports)      and (2) has been subject to such filing requirements for the past 90      days.**

**Yes      **
**x**
**No      **
**o**

**Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, or a non-accelerated filer. See definition of “accelerated      filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check      one):**

**Large      accelerated filer o **
**              **
**Accelerated      filer o**
**  **
**             Non-accelerated      filerx**

**Indicate      by check mark whether the registrant is a shell company (as defined in Rule      12b-2 of the Exchange Act).**

**Yes      **
**x**
**No      **
**o**

**Indicate      the number of shares outstanding of each of the issuer’s classes of common stock      as of May 14, 2007.**

|  **Common                Stock, $.0001 par                value**  |   |   **8,750,000**                                  |
|------------------------------------------------------------------------------|--------|------------------------------------------------------------|
|  **(Class)**                                                            |   |  **(Number                of                shares)** |

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----

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**Part      I - Financial Information**

**Item      1. Condensed Consolidated Financial Statements**

**Echo      Healthcare Acquisition Corp.**

**(a      development stage company)**

**Condensed      Consolidated Balance Sheets**

|                                                                                                                                                                                                                                                                                                                                                                                             |   | **March                31,****2007****(Unaudited)** |       | **December                31,****2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|------------|-----------------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                |       |                                    |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                |       |                                    |   |   |   |
| Current                Assets:                                                                                                                                                                                                                                                                                                                                                                   |   |                                                |       |                                    |   |   |   |
| Cash                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                   | 47,274     |                                    | $      | 25,847 |   |
| Prepaid                expenses                                                                                                                                                                                                                                                                                                                                                                  |   |                                                | 26,937     |                                    |   | 41,104 |   |
| Total                current assets                                                                                                                                                                                                                                                                                                                                                              |   |                                                | 74,211     |                                    |   | 66,951 |   |
| Investments                held in Trust Fund                                                                                                                                                                                                                                                                                                                                                    |   |                                                | 56,900,062 |                                    |   | 56,403,718 |   |
| Deferred                acquisition costs                                                                                                                                                                                                                                                                                                                                                        |   |                                                | 349,644    |                                    |   | 284,878 |   |
| Total                assets                                                                                                                                                                                                                                                                                                                                                                      |   | $                                                   | 57,323,917 |                                    | $      | 56,755,547 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                |       |                                    |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                                                                                                                                                                    |   |                                                |       |                                    |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                |       |                                    |   |   |   |
| Current                liabilities:                                                                                                                                                                                                                                                                                                                                                              |   |                                                |       |                                    |   |   |   |
| Accrued                expenses                                                                                                                                                                                                                                                                                                                                                                  |   | $                                                   | 793,828    |                                    | $      | 611,550 |   |
| Derivative                liabilities                                                                                                                                                                                                                                                                                                                                                            |   |                                                |       |                                    |   | 6,165,250 |   |
| Line                of Credit from Founding Stockholders                                                                                                                                                                                                                                                                                                                                         |   |                                                | 378,800    |                                    |   | 240,300 |   |
| Accrued                offering costs                                                                                                                                                                                                                                                                                                                                                            |   |                                                | 152,713    |                                    |   | 152,713 |   |
| Deferred                underwriting and other offering costs                                                                                                                                                                                                                                                                                                                                    |   |                                                | 2,018,233  |                                    |   | 2,018,233 |   |
| Total                current liabilities                                                                                                                                                                                                                                                                                                                                                         |   |                                                | 3,343,574  |                                    |   | 9,188,046 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                |       |                                    |   |   |   |
| **COMMITMENTS                AND CONTINGENCIES**                                                                                                                                                                                                                                                                                                                                                 |   |                                                |       |                                    |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                |       |                                    |   |   |   |
| Common                stock subject to possible conversion, 1,436,781                shares                at a conversion values of approximately $7.90                and $7.84 per share, respectively, including accretion of allocated                income                of $371,798 and $279,267,respectively, (net of $191,532 and $143,865                income taxes, respectively) |   |                                                | 11,355,703 |                                    |   | 11,263,172 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                |       |                                    |   |   |   |
| **STOCKHOLDERS’                EQUITY**                                                                                                                                                                                                                                                                                                                                                    |   |                                                |       |                                    |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                |       |                                    |   |   |   |
| Preferred                stock—$.0001 par value; 1,000,000 shares authorized; 0 issued and                outstanding                                                                                                                                                                                                                                                                      |   |                                                | —    |                                    |   | — |   |
| Common                stock—$.0001 par value, 25,000,000 shares authorized; 8,750,000 issued                and                outstanding (which includes 1,436,781                shares                subject to possible conversion)                                                                                                                                                  |   |                                                | 875        |                                    |   | 875 |   |
| Additional                paid-in capital                                                                                                                                                                                                                                                                                                                                                        |   |                                                | 42,850,452 |                                    |   | 36,195,054 |   |
| (Deficit)/                Retained Earnings accumulated during the development stage                                                                                                                                                                                                                                                                                                             |   |                                                | (226,687   | )                                       |   | 108,400 |   |
| Total                stockholders’ equity                                                                                                                                                                                                                                                                                                                                                  |   |                                                | 42,624,640 |                                    |   | 36,304,329 |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                                                                                                                                                                                                  |   | $                                                   | 57,323,917 |                                    | $      | 56,755,547 |   |

----

**Echo        Healthcare Acquisition Corp.**

**(a        development stage company)**

**Condensed        Consolidated Statements of Operations**

**(Unaudited)**

|                                                                       |   |   **Three                  Months****ended**** March                  31, 2007** |      | **Three                  Months****ended**** March                  31, 2006** |   | **June                  10, 2005****(Date                  of****Inception)****through****March                  31,****2007** |   |
|----------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|-----------|-------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                       |   |                                                                                            |      |                                                                                |   |                                                                                                                           |   |
| Revenue                                                                    |   | $                                                                                               | 0         |                                                                                | $      | 0                                                                                                                              |   | $ | 0 |   |
| Operating                  expenses                                        |   |                                                                                            | (195,776  | )                                                                                   |   | (26,471                                                                                                                        | )      |   | (744,451 | ) |
| Organization                  costs                                        |   |                                                                                            | 0         |                                                                                |   | 0                                                                                                                              |   |   | (137,120 | ) |
| Operating                  loss                                            |   |                                                                                            | (195,776  | )                                                                                   |   | (26,471                                                                                                                        | )      |   | (881,571 | ) |
| Loss                  on derivative liabilities                            |   |                                                                                            | (490,148  | )                                                                                   |   | (184,237                                                                                                                       | )      |   | (856,924 | ) |
| Interest                  income                                           |   |                                                                                            | 701,344   |                                                                                |   | 61,699                                                                                                                         |   |   | 2,818,063 |   |
| Income                  before provision for income taxes                  |   |                                                                                            | 15,420    |                                                                                |   | (149,009                                                                                                                       | )      |   | 1,079,568 |   |
| Provision                  for income taxes                                |   |                                                                                            | (257,977  | )                                                                                   |   | 0                                                                                                                              |   |   | (934,458 | ) |
| Net                  (loss)/ income                                        |   | $                                                                                               | (242,557  | )                                                                                   | $      | (149,009                                                                                                                       | )      | $ | 145,110 |   |
|                                                                       |   |                                                                                            |      |                                                                                |   |                                                                                                                           |   |   |   |   |
| Weighted                  average number of shares outstanding—basic |   |                                                                                            | 7,968,750 |                                                                                |   | 2,222,222                                                                                                                      |   |   |   |   |
|                                                                       |   |                                                                                            |      |                                                                                |   |                                                                                                                           |   |   |   |   |
| Net loss                  per share—basic                       |   | $                                                                                               | (0.03     | )                                                                                   | $      | (0.07                                                                                                                          | )      |   |   |   |
|                                                                       |   |                                                                                            |      |                                                                                |   |                                                                                                                           |   |   |   |   |

----

**Echo        Healthcare Acquisition Corp.**

**(a        development stage company)**

**Condensed        Consolidated Statements of Stockholders’ Equity**

|                                                                                                                                                                                                                                               |   | **Common                  Stock** |      |       |   |                                 |   |                                                                           |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|------------|--------|--------------------------------------|--------|--------------------------------------------------------------------------------|-------------|
|                                                                                                                                                                                                                                               |   | **Shares**                        |      | **Amount** |   | **Additional****Paid-In****Capital** |   | **Deficit****Accumulated****During                  the Development****Stage** |        | **Total                  Stockholders’ Equity****(Capital****Deficit)** |   |
| **Balance –                  June 10,                  2005 (date of inception)**                                                                                                                                                       |   |                              | -0-       |       |   | -0-                                  |   |                                                                           | -0-         |   |   | -0- |   |   | -0- |   |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| Contributions                  from Founding Stockholders                                                                                                                                                                                          |   |                              | 1,562,500 |       | $      | 156                                  |   | $                                                                              | 24,844      |   |   |   |   | $ | 25,000 |   |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| Net                  loss for the period ended December 31, 2005                                                                                                                                                                              |   |                              |      |       |   |                                 |   |                                                                           |        |   | $ | (138,120 | ) |   | (138,120 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| **Balance                  – December 31, 2005**                                                                                                                                                                                             |   |                              | 1,562,500 |       | $      | 156                                  |   | $                                                                              | 24,844      |   | $ | (138,120 | ) | $ | (113,120 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| Sale                  of 7,187,500 Units, net of underwriter’s discount and offering expenses                  (includes 1,436,781                  shares subject to possible conversion, excludes Derivative                  Liabilities) |   |                              | 7,187,500 |       |   | 719                                  |   |                                                                           | 52,402,489  |   |   |   |   |   | 52,403,208 |   |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| Proceeds                  subject to possible conversion of 1,436,781                  shares                                                                                                                                                      |   |                              |      |       |   |                                 |   |                                                                           | (10,983,905 | ) |   |   |   |   | (10,983,905 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| Proceeds                  from issuance of underwriter’s purchase option                                                                                                                                                                     |   |                              |      |       |   |                                 |   |                                                                           | 100         |   |   |   |   |   | 100 |   |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| Reclassification                  of proceeds allocated to warrants - derivatives liability                                                                                                                                                        |   |                              |      |       |   |                                 |   |                                                                           | (5,798,474  | ) |   |   |   |   | (5,798,474 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| Proceeds                  from sale of warrants to Founding Stockholders                                                                                                                                                                           |   |                              |      |       |   |                                 |   |                                                                           | 550,000     |   |   |  |   |   | 550,000 |   |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| Accretion                  of trust fund income for the period relating to common stock subject                  to                  redemption, net of tax                                                                                        |   |                              |      |       |   |                                 |   |                                                                           |        |   |   | (279,267 | ) |   | (279,267 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| Net                  income for the year                                                                                                                                                                                                           |   |                              |      |       |   |                                 |   |                                                                           |        |   |   | 525,787 |   |   | 525,787 |   |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| **Balance                  – December 31, 2006**                                                                                                                                                                                             |   |                              | 8,750,000 |       | $      | 875                                  |   | $                                                                              | 36,195,054  |   | $ | 108,400 |   | $ | 36,304,329 |   |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| Accretion                  of trust fund income for the period relating to common stock subject                  to                  redemption, net of tax                                                                                        |   |                              |      |       |   |                                 |   |                                                                           |        |   |   | (92,530 | ) |   | (92,530 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| Reclassification                  of proceeds allocated to warrants - derivatives liability upon                  adoption of                  Warrant Clarification Agreement                                                                     |   |                              |      |       |   |                                 |   |                                                                           | 6,655,398   |   |   |  |   |   | 6,655,398 |   |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| Net                  loss for the period                                                                                                                                                                                                           |   |                              |      |       |   |                                 |   |                                                                           |        |   |   | (242,557 | ) |   | (242,557 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |       |   |                                 |   |                                                                           |        |   |   |   |   |   |   |   |
| **Balance                    – March                    31, 2007 (unaudited)**                                                                                                                                                               |   |                              | 8,750,000 |       | $      | 875                                  |   | $                                                                              | 42,850,452  |   | $ | (226,687 | ) | $ | 42,624,640 |   |

----

**Echo        Healthcare Acquisition Corp.**

**(a        development stage company)**

**Condensed        Consolidated Statements of Cash Flows**

**(Unaudited)**

|                                                                                                                                       |   | **January                  1, 2007****through**** March                  31, 2007** |      | **January                  1, 2006**** through****March                  31, 2006** |   | **June                  10, 2005**** (Date                  of Inception)**** through**** March                  31, 2007** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|-----------|------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **Cash                  flows from operating activities:**                                                                                 |   |                                                                                     |      |                                                                                     |   |                                                                                                                                       |   |
| Net                  (loss)/ income                                                                                                        |   | $                                                                                        | (242,557  | )                                                                                        | $      | (149,009                                                                                                                                   | )      | $ | 145,110 |   |
| Adjustments                  to reconcile net income (loss) to net cash provided by  (used in)                  operating activities: |   |                                                                                     |      |                                                                                     |   |                                                                                                                                       |   |   |   |   |
| Loss                  on derivative liabilities                                                                                            |   |                                                                                     | 490,148   |                                                                                     |   | 184,237                                                                                                                                    |   |   | 856,924 |   |
| Changes                  in:                                                                                                               |   |                                                                                     |      |                                                                                     |   |                                                                                                                                       |   |   |   |   |
| Prepaid                  expenses                                                                                                          |   |                                                                                     | 14,167    |                                                                                     |   | (83,604                                                                                                                                    | )      |   | (26,937 | ) |
| Accrued                  expenses                                                                                                          |   |                                                                                     | 117,513   |                                                                                     |   | (125,064                                                                                                                                   | )      |   | 444,184 |   |
| Net                  cash provided by (used in) operating activities                                                                  |   |                                                                                     | 379,271   |                                                                                     |   | (173,440                                                                                                                                   | )      |   | 1,419,281 |   |
|                                                                                                                                       |   |                                                                                     |      |                                                                                     |   |                                                                                                                                       |   |   |   |   |
| **Cash                  flows from investing activities:**                                                                                 |   |                                                                                     |      |                                                                                     |   |                                                                                                                                       |   |   |   |   |
| ** **Increase                  in Investments held in Trust Fund                                                                      |   |                                                                                     | (496,344  | )                                                                                        |   | (55,008,699                                                                                                                                | )      |   | (56,900,062 | ) |
| ** **Net                  cash used in investing activities                                                                           |   |                                                                                     | (496,344  | )                                                                                        |   | (55,008,699                                                                                                                                | )      |   | (56,900,062 | ) |
|                                                                                                                                       |   |                                                                                     |      |                                                                                     |   |                                                                                                                                       |   |   |   |   |
| **Cash                  flows from financing activities:**                                                                                 |   |                                                                                     |      |                                                                                     |   |                                                                                                                                       |   |   |   |   |
| Proceeds                  from notes payable to Founding Stockholders                                                                      |   |                                                                                     | —   |                                                                                     |   | 50,000                                                                                                                                     |   |   | 200,000 |   |
| Proceeds                  from Line of Credit from Founding Stockholders                                                                   |   |                                                                                     | 138,500   |                                                                                     |   | 25,000                                                                                                                                     |   |   | 378,800 |   |
| Payments                  on notes payable to Founding Stockholders                                                                        |   |                                                                                     | —   |                                                                                     |   | (200,000                                                                                                                                   | )      |   | (200,000 | ) |
| Proceeds                  from sale of common stock to Founding Stockholders                                                               |   |                                                                                     | —   |                                                                                     |   |                                                                                                                                       |   |   | 25,000 |   |
| Gross                  proceeds from public offering                                                                                       |   |                                                                                     | —   |                                                                                     |   | 57,500,000                                                                                                                                 |   |   | 57,500,000 |   |
| Proceeds                  from issuance of underwriter’s purchase option                                                             |   |                                                                                     | —   |                                                                                     |   | 100                                                                                                                                        |   |   | 100 |   |
| Proceeds                  from sale of warrants to Founding Stockholders                                                                   |   |                                                                                     | —   |                                                                                     |   | 550,000                                                                                                                                    |   |   | 550,000 |   |
| Costs                  of offering                                                                                                         |   |                                                                                     | —   |                                                                                     |   | (2,715,348                                                                                                                                 | )      |   | (2,925,845 | ) |
| Net                  cash provided by financing activities                                                                                 |   |                                                                                     | 138,500   |                                                                                     |   | 55,209,752                                                                                                                                 |   |   | 55,528,055 |   |
| **Net                  increase in cash**                                                                                             |   |                                                                                     | 21,427    |                                                                                     |   | 27,613                                                                                                                                     |   |   | 47,274 |   |
| Cash—beginning                  of period                                                                                            |   |                                                                                     | 25,847    |                                                                                     |   | 14,807                                                                                                                                     |   |   | 0 |   |
| **Cash—end                  of period**                                                                                              |   | $                                                                                        | 47,274    |                                                                                     | $      | 42,420                                                                                                                                     |   | $ | 47,274 |   |
|                                                                                                                                       |   |                                                                                     |      |                                                                                     |   |                                                                                                                                       |   |   |   |   |
| Supplemental                  disclosure of cash paid for:                                                                                 |   |                                                                                     |      |                                                                                     |   |                                                                                                                                       |   |   |   |   |
| Income                  taxes paid                                                                                                         |   | $                                                                                        | 205,000   |                                                                                     |   | —                                                                                                                                    |   | $ | 865,000 |   |
|                                                                                                                                       |   |                                                                                     |      |                                                                                     |   |                                                                                                                                       |   |   |   |   |
| Supplemental                  schedule of non-cash financing activities                                                                    |   |                                                                                     |      |                                                                                     |   |                                                                                                                                       |   |   |   |   |
| (Payment                  of accrued) Accrual of deferred offering costs                                                                   |   |                                                                                     | —   |                                                                                     | $      | (256,684                                                                                                                                   | )      | $ | 152,713 |   |
| Accrual                  of deferred underwriting and other offering costs                                                                 |   |                                                                                     | —   |                                                                                     | $      | 2,018,233                                                                                                                                  |   | $ | 2,018,233 |   |
| Accrual                  of deferred acquisition costs                                                                                     |   | $                                                                                        | 64,766    |                                                                                     |   | —                                                                                                                                    |   | $ | 349,664 |   |
| Warrant                  obligation in connection with sale of units in offering                                                           |   |                                                                                     |      |                                                                                     | $      | 5,982,711                                                                                                                                  |   | $ | — |   |
| Reclassification                  of warrants liability to equity                                                                          |   | $                                                                                        | 6,655,398 |                                                                                     |   |                                                                                                                                       |   | $ | 6,655,398 |   |

----

**Echo      Healthcare Acquisition Corp.**

**(a      development stage company)**

**Notes      to Condensed Consolidated Financial Statements**

**(Unaudited)**

**NOTE      A—BASIS OF PRESENTATION**

**NOTE      B—ORGANIZATION AND BUSINESS OPERATIONS**

**NOTE      C—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**[1]**
**Use      of estimates:**

**[2]**
**Income/(Loss)      per common share:**

----

**Echo        Healthcare Acquisition Corp.**

**(a        development stage company)**

**Notes        to Condensed Consolidated Financial Statements**

**(Unaudited)**

|                                                                                                                                           |   | **Three                months ended****March                31, 2007** |            | **Three                months ended****March                31, 2006** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|-----------------|------------------------------------------------------------------------|--------|
| Net                (loss)                                                                                                                      |   | $                                                                      | (242,557        | )                                                                      | $      | (149,009 | ) |
| Interest                income attributable to common stock subject to possible                conversion                                      |   | $                                                                      | (92,530         | )                                                                      | $      | (12,334 | ) |
| Pro                forma net (loss) attributable to common stockholders not subject                to                possible conversion       |   | $                                                                      | (335,087        | )                                                                      | $      | (161,343 | ) |
| Pro                forma weighted average number of shares outstanding, excluding shares                subject to possible conversion - basic |   | $                                                                      | 6,531,969  |                                                                   |   | 2,072,991 |   |
| Pro                forma net (loss) per share, excluding shares subject to possible                conversion - basic                          |   | $                                                                      | (0.05           | )                                                                      | $      | (0.08 | ) |
|                                                                                                                                           |   |                                                                   |            |                                                                   |   |   |   |

**[3]      Accounting for Warrants and Derivative Instruments**

----

**Echo          Healthcare Acquisition Corp.**

**(a          development stage company)**

**Notes          to Condensed Consolidated Financial Statements**

**(Unaudited)**

**[4]      Income Taxes**

**[5]      Adoption of New Accounting Pronouncement**

----

**Echo          Healthcare Acquisition Corp.**

**(a          development stage company)**

**Notes          to Condensed Consolidated Financial Statements**

**(Unaudited)**

**[6]      New Accounting Pronouncements Not Yet Adopted**

**NOTE      D — LINE OF CREDIT FROM FOUNDING STOCKHOLDERS**

** **
** **

**NOTE      E — RELATED PARTY TRANSACTION**

**NOTE      F —PROPOSED ACQUISITION**

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**Echo          Healthcare Acquisition Corp.**

**(a          development stage company)**

**Notes          to Condensed Consolidated Financial Statements**

**(Unaudited)**

**NOTE      G — DEFERRED ACQUISTION COSTS **

**NOTE      H - SUBSEQUENT EVENT**

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**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations**

**Overview**

** **
** **

**Critical      Accounting Policies and Accounting Estimates**

**Results      of Operations and Known Trends or Future Events**

**Developments      in Finding a Suitable Business Target**

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|   | · | The                  formula for the aggregate merger consideration (“Aggregate Merger                  Consideration”) payable in the merger will include revenues attributable                  to hospitals or clinics that are acquired by XLNT on or before                  March 31,                  2007. |
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|   | · | Aggregate                  Merger Consideration shall be a number of shares of our common                  stock equal                  to the quotient obtained by dividing (1) the sum of (A) two times                  the                  lesser of (x) the consolidated gross revenues of XLNT for the year                  ended                  December 31, 2006, including the revenues for the year ended December                  31,                  2006 attributable to hospitals or clinics that are acquired by                  XLNT prior                  to the Closing Date (each an “Acquisition Candidate”), and (y) $60.0                  million, but in no event less than $57.5 million (“Baseline Revenues”),                  and (B) the excess over $60.0 million of XLNT’s Baseline Revenues                  (“Incremental Revenues”), multiplied by 1.15 (the sum of Baseline Revenues                  and Incremental Revenues being hereinafter referred to as the “Adjusted                  Baseline Revenues”), plus (C) in the event the threshold requirements for                  the Management Performance Bonus Pool are met (as described below),                  an                  amount equal to (the “Operational Improvement Amount”) the excess of the                  consolidated gross revenues of XLNT for the annualized period beginning                  on                  January 1, 2007 and ending on the last day of the fiscal quarter                  (based on                  the 2007 calendar year) immediately preceding the Closing Date,                  determined                  on a pro forma basis to include the revenues for such period attributable                  to the Completed Acquisitions, over 105% of the Adjusted Baseline                  Revenues                  multiplied by (i) 1.15 in the event XLNT’s 2007 Consolidated EBITDA margin                  for the period beginning on January 1, 2007 and ending on the last                  day of                  the fiscal quarter (based on the calendar year) immediately preceding                  the                  Closing Date (the “2007 Year-To-Date EBITDA Margin”) has increased by at                  least 100 basis points over the greater of (x) XLNT’s 2006 adjusted EBITDA                  margin for the trailing twelve month period ended December 31,                  2006,                  determined on a pro forma basis to include the revenues for such                  period                  attributable to the Completed Acquisitions, and (y) 16.2% (the“2006 Pro                  Forma EBITDA Margin”) or (ii) 1.33 in the event that XLNT’s 2007                  Year-To-Date EBITDA Margin has increased by at least 250 basis                  points over                  XLNT’s 2006 Pro Forma EBITDA Margin plus (D) the Net Cash Amount; by                  (2)                  the product of (a) the amount of cash in our trust fund at the                  Closing                  (without deduction for amounts paid in connection with obtaining                  a                  fairness opinion from a nationally recognized financial advisor                  and the                  conversion by our public stockholders voting against the Merger                  of up to                  19.9% of our shares of common stock issued in the Offering into                  a pro rata                  share of the funds held in our trust fund established in connection                  with                  the Offering) divided by the number of shares of our common stock                  then                  issued and outstanding (excluding therefrom any shares of our common                  stock                  issuable upon the exercise or exchange of our other securities                  which by                  their terms are convertible into or exercisable or exchangeable                  for our                  common stock) multiplied by (b) 1.25. However, the product determined                  in                  (2) above shall not exceed $7.20 (as adjusted for events set forth                  in the                  merger agreement). |
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|   | · | The                  exchange ratio pursuant to which shares of XLNT common stock will                  be                  exchanged for shares of Echo common stock will be equal to the                  quotient of                  (x) the Aggregate Merger Consideration, divided by the sum of (y)                  (i) the                  total number of outstanding shares of XLNT common stock (assuming                  that all                  shares of XLNT’s convertible preferred stock are converted into common                  stock prior to the closing) plus (ii) the number of shares of XLNT                  common                  stock issuable upon exercise of all vested and unvested options                  and                  warrants, determined using the treasury method of                  accounting. |
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|   | · | The                  parties will calculate the final working capital and net cash amount                  within 30 days following the closing of the Merger. If the final                  working                  capital is positive, then we shall issue to the exchange agent                  such number                  of additional shares of our common stock as is equal to the quotient                  determined by dividing the net cash amount (which shall not exceed                  the                  amount by which XLNT’s final working capital is positive and shall be                  reduced dollar-for-dollar by the amount of cash in the Company’s trust                  fund in excess of $52.0 million (after payment of all transaction                  expenses, amounts payable to the Company stockholders requesting                  redemption and deferred Offering expenses)) by our common stock                  per share                  issue price. In addition, if the requirements for the Management                  Performance Bonus Pool are met, we shall issue to the exchange                  agent such                  number of additional shares of the Company’s common stock as is equal to                  the quotient determined by dividing the Operational Improvement                  Amount by                  the Company’s common stock per share issue price. If any additional                  amounts are determined to be owing following the delivery of a                  notice of                  disagreement in accordance with the Amended and Restated Merger                  Agreement,                  then certificates for the additional shares of our common stock                  (or any                  cash in lieu of fractional shares) shall be deposited with the                  exchange                  agent within 30 days of such determination. In each case discussed                  above,                  the number of shares of our common stock to be delivered to the                  exchange                  agent shall be reduced by the number of shares of the Company’s common                  stock required by the terms of the Amended and Restated Merger                  Agreement                  to be delivered to the escrow agent, for distribution by the exchange                  agent to XLNT’s stockholders in an amount equal to each such stockholder’s                  pro rata interest in such amount following the 18 month anniversary                  of the                  closing of the subject transaction. |
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|   | · | XLNT                  will be permitted to incur up to $15 million in principal amount                  of                  indebtedness that carries an interest rate not to exceed thirteen                  percent                  (13%). |
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|   | · | The                  expiration date of the merger agreement has been extended until                  March 21,                  2008. |
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|   | · | The                  companies agreed to delete the covenant in the merger agreement                  that                  restricted XLNT to 19,500,000 shares of common stock                  outstanding. |
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|   | · | Between                  the date of signing of the Amended and Restated Merger Agreement                  and March                  31, 2007, XLNT shall not enter into any definitive acquisition                  agreement                  with a hospital or clinic it seeks to acquire (each, an                  “Acquisition** **Candidate”)                  unless such definitive acquisition agreement includes a termination                  right                  exercisable by the XLNT if XLNT and we determine that such Acquisition                  Candidate will not be able to provide its audited financial statements                  that will be required by our Form S-4 (“Significant Acquisition Audits”)                  on or before May 10, 2007. |
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|   | · | Between                  the date of signing of the Amended and Restated Merger Agreement                  and March                  31, 2007, XLNT shall only consummate an acquisition with an Acquisition                  Candidate if XLNT and we determine that such Acquisition Candidate                  will be                  able to provide its audited financial statements that constitute                  Significant Acquisition Audits on or before May 10, 2007. |
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|   | · | Subsequent                  to March 31, 2007, XLNT will not enter into any term sheet, letter                  of                  intent, definitive acquisition agreement or similar agreements                  with an                  Acquisition Candidate or consummate any acquisition with an Acquisition                  Candidate if the result of taking such action would be to require                  that any                  financial information, including, without limitation, any financial                  statements (whether or not audited), relating to such Acquisition                  Candidate be included in the proxy statement/prospectus to be filed                  by us                  or that any of the financial information or then existing disclosure                  contained or to be contained in the proxy statement/prospectus                  would be                  required by applicable requirements of the Securities and Exchange                  Commission (“SEC”) to be amended in any manner to include information                  and/or disclosure regarding such Acquisition                  Candidate. |
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|   | · | XLNT                  will provide to us XLNT’s historical audits on or before March 31, 2007.                  XLNT will provide to us any other audited financial statements                  that may be                  required by the SEC due to any acquisitions of Acquisition Candidates                  completed subsequent to December 31, 2006 that either individually                  or in                  the aggregate meet any significance tests then prescribed by the                  SEC for                  determining financial statement disclosure requirements relevant                  to our                  proxy statement/prospectus (“Significant Acquisition Audits”) on or before                  May 10, 2007. For purposes of the Amended and Restated Merger Agreement,                  XLNT’s historical audits and the Significant Acquisition Audits are                  referred to collectively as the “Audited Financial Statements.” In                  addition, XLNT will provide us with XLNT’s unaudited interim financial                  statements for the quarter ended March 31, 2007 on or before May                  10,                  2007. |
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|   | · | On                  the closing date of the Merger, in the event XLNT shall have complied                  with                  certain obligations set forth in the Amended and Restated Merger                  Agreement                  relating to the convening of the XLNT stockholder meeting and the                  delivery                  by XLNT of the financial statements required for inclusion in our                  proxy                  statement/prospectus, certain members of XLNT’s management team and                  consultants as designated by the Compensation Committee of XLNT’s board of                  directors and approved by us shall be eligible to participate in                  a                  management performance bonus pool (“Management Performance Bonus Pool”)                  with maximum awards not to exceed $1.0 million in the aggregate.                  The                  maximum aggregate awards shall be (i) $500,000 in the event XLNT’s 2007                  Year-To-Date EBITDA Margin has increased by at least 100 basis                  points over                  XLNT’s 2006 Pro Forma EBITDA Margin or (ii) $1.0 million in the event                  that                  XLNT’s 2007 Year-To-Date EBITDA Margin has increased by at least 250                  basis                  points over XLNT’s 2006 Pro Forma EBITDA                  Margin. |
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|   | · | if                  the Merger has not occurred by March 21, 2008 (provided that this                  termination date shall be reduced by each day XLNT delivers certain                  required historical audited financial statements in advance of                  December                  15, 2006); |
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|   | · | if                  a governmental entity has issued a non-appealable final decree,                  order or                  ruling or other final action permanently restraining or otherwise                  prohibiting the Merger; |
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|   | · | Our                  stockholders reject the proposed transaction (provided that such                  right to                  terminate shall be predicated on our Board’s continued support of                  transaction); or |
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|   | · | Holders                  of 20% or more of our common stock exercise their conversion                  rights. |
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|   | · | we                  have breached any of our representations, warranties or covenants                  and any                  curable breach has not been cured by thirty days after XLNT notifies                  us of                  such breach; |
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|   | · | If                  XLNT’s stockholders fail to approve (provided that such right to terminate                  shall be predicated on the XLNT Board’s continued support of                  transaction). |
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|   | · | XLNT                  has breached any of its representations, warranties or covenants                  and any                  curable breach has not been cured by thirty days after we notify                  XLNT of                  such breach; |
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|   | · | XLNT                  fails to deliver certain required historical audited financial                  statements                  by March 31, 2007; and |
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|   | · | XLNT’s                  annualized trailing twelve months revenue as of December 31, 2006                  (together with any Acquisition Candidates) is less than $57,500,000                  or the                  annualized consolidated hospital EBITDA for XLNT (together with                  any                  Acquisition Candidates) based on the trailing twelve month period                  ending                  December 31, 2006 is less than $9,775,000, which termination right                  shall                  be exercisable within five (5) business days after: (a) XLNT notifies                  us                  that XLNT does not reasonably believe that it will meet one of                  the                  foregoing targets; or (b) March 31, 2007 if either or both of the                  targets                  are not met due to the failure by XLNT to complete the acquisition                  of                  certain acquisition candidates. |
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**Liquidity      and Capital Resources**

|   | · | may                  significantly reduce the equity interest of our                  stockholders; |
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|   | · | will                  likely cause a change in control if a substantial number of our                  shares of                  common stock or voting preferred stock are issued, which may affect,                  among                  other things, our ability to use our net operating loss carry forwards,                  if                  any, and may also result in the resignation or removal of one or                  more of                  our present officers and directors;                  and |
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|   | · | may                  adversely affect prevailing market prices for our common                  stock. |
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|   | · | default                  and foreclosure on our assets if our operating revenues after a                  business                  combination are insufficient to pay our debt                  obligations; |
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|   | · | acceleration                  of our obligations to repay the indebtedness even if we make all                  principal                  and interest payments when due if we breach the covenants contained                  in any                  debt securities, such as covenants that require the satisfaction                  or                  maintenance of certain financial ratios or reserves, without a                  waiver or                  renegotiation of such covenants; |
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|   | · | an                  obligation to immediately repay all principal and accrued interest,                  if                  any, upon demand to the extent any debt securities are payable                  on demand;                  and |
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|   | · | our                  inability to obtain additional financing, if necessary, to the                  extent any                  debt securities contain covenants restricting our ability to obtain                  additional financing while such security is outstanding, or to                  the extent                  our existing leverage discourages other potential                  investors. |
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|   | · | approximately                  $20,000 for reimbursement of out-of-pocket expenses for the due                  diligence                  and investigation of a target                  business; |
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|   | · | approximately                  $50,000 of expenses in legal and accounting fees relating to our                  reporting                  obligations to the SEC; |
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|   | · | approximately                  $275,000 for general working capital that will be used for miscellaneous                  expenses and reserves, including expenses of structuring and negotiating                  a                  business combination, including the making of a down payment or                  the                  payment of exclusivity or similar fees and expenses;                  and |
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|   | · | approximately                  $24,000 for administrative fees relating to office space for twelve                  (12)                  months. However, an additional $66,000 in the administrative fees                  will be                  deferred and shall be payable upon the consummation of a business                  combination. In the event we must liquidate our company prior to                  such a                  business combination, these fees will not be paid with proceeds                  of our                  public offering held in trust. |
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|                                                     |   | **Payments                due by period** |    |
|----------------------------------------------------------|--------|-------------------------------------------|---------|
|                                                     |   |  **Total**                           |    | **Less                than****1                year** |   |  **1-3                years** |   |  **3-5                years** |   | **More                than****5                years** |   |
| Long-term                debt (1)                   |   | $                                         | 378,800 |   | $ | 378,800 |   | $ |   |   | $ |  — |   | $ | — |   |
| Administrative                Fees Obligations (2)  |   |                                      | 90,000  |   |   | 90,000 |   |   |   |   |   | — |   |   | — |   |
| Total                                               |   | $                                         | 468,800 |   | $ | 468,800 |   | $ |   |   | $ |  — |   | $ | — |   |

| (1) | As                  of March 31, 2007, we had drawn $378,800 on our Working Capital                  Line of                  Credit which will become due at the consummation of a business                  combination, which could occur in less than one year and may occur                  as late                  as March 21, 2008. |
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| (2) | The                  administrative fees obligations represent the full amount of rent                  payable                  to Windy City, Inc. for office space, utilities and personnel,                  $5,500 per                  month of which is deferred until the consummation of a business                  combination. |
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**Risk      Factors that May Affect Future Results**

**Item      3. Quantitative and Qualitative Disclosures about Market      Risk**

**Item      4. Controls and Procedures**

*Evaluation      of Disclosure Controls and Procedures*

**PART      II **
**-**
**      OTHER INFORMATION**

**Item      1. Legal Proceedings**

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**Item      1A. Risk Factors**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds**

**Item      3. Defaults Upon Senior Securities**

**Item      4. Submission of Matters to a Vote of Security Holders**

**I**
**tem      5. Other Information**

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**Item      6. Exhibits**

| 10.1   |   | Amended                  and Restated Agreement and Plan of Merger by and among Echo Healthcare                  Acquisition Corp., Pet DRx Acquisition Company, and XLNT Veterinary                  Care,                  Inc., dated February 16, 2007 (incorporated by reference to the                  Company’s                  Current Report on Form 8-K filed on February 20, 2007). |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2   |   | Warrant                  Clarification Agreement, effective as of March 30, 2007, to the                  Warrant                  Agent Agreement, dated as of March 17, 2006, by and between Echo                  Healthcare Acquisition Corp., a Delaware corporation, and Corporate                  Stock                  Transfer, Inc., a Colorado corporation.                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 31.1   |   | Rule                  13a-14(a)/15d-14(a) Certification of the Chief Executive                  Officer.                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 31.2   |   | Rule                  13a-14(a)/15d-14(a) Certification of the Chief Financial                  Officer.                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 32.1   |   | Section                  1350 Certification of the Chief Executive Officer.                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                   |
| 32.2   |   | Section                  1350 Certification of the Chief Financial                  Officer.                                                                                                                                                                                                                                                                                                           |

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|                                   |                                                                  |                                                |
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|                                   | ECHO              HEALTHCARE              ACQUISITION CORP.           |
|                                   | Registrant                                                            |
|                              |                                                             |                                           |
| Date: May                15, 2007 | By:                                                         | /s/ GENE              E.              BURLESON |
|                                   |                                                                       |
|                                   | Gene                E. BurlesonChief                Executive Officer |

|                                   |                                                     |                                   |
|----------------------------------------|----------------------------------------------------------|----------------------------------------|
| Date: May                15, 2007 | By:                                            | /s/ KEVIN              PENDERGEST |
|                                   |                                                          |
|                                   | Kevin PendergestChief Financial                  Officer |

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