SAN DIEGO, Feb. 22 /PRNewswire/ -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI) reports today its 2000 financial results for the fourth quarter
and the year, both ended December 31, 2000. For the fourth quarter of 2000,
the Company had a net loss applicable to common shareholders of $444,000, or
$0.02 per share, versus a net loss of $1,295,000, or $0.10 per share, for the
comparable period in 1999. For the year ended December 31, 2000, the Company
had a net loss applicable to common shareholders of $2,776,000, or $0.16 per
share, versus a net loss of $4,535,000, or $0.36 per share, for the comparable
period in 1999. The difference in year end results is due primarily to a
significant increase in contract and licensing revenue in 2000, and continued
progress in management of expenses.
Contract revenues, interest, and product income totaled $525,000 for the
fourth quarter of 2000, compared to $13,000 for the same period in 1999. For
the year, these revenues totaled $1,189,000, compared to $96,000 for the same
period in 1999. The increase in 2000 contract revenue primarily is due to
agreements with Femcare, Ltd. providing for rights to register and market the
Company's female stress urinary incontinence product in Europe and Australia,
the establishment of a technology license with Genencor International to
develop and market protein polymers for defined industrial markets, and the
license and sale of the Company's in vitro cell culture business to Sanyo
Chemical Industries, Ltd. Operating expenses for the fourth quarter were
$899,000, as compared to $1,239,000 for the same period in 1999. Operating
expenses for the year totaled $3,688,000, compared to $4,353,000 for the same
period in 1999. For both the fourth quarter and the year, the decrease in
expenditures was due primarily to lower than expected clinical testing costs
and a general "across-the-board" Company effort to control costs. However,
the cost of clinical testing is projected to rise in 2001 due to expansion of
the female stress urinary incontinence product, and the first quarter
initiation of clinical testing of the Company's product for dermal contour
corrections.
As of December 31, 2000, the Company had $866,000 in cash and cash
equivalents which the Company believes is sufficient to fund its operations
through March 2001. PPTI currently is pursuing a number of alternatives to
meet the continuing capital requirements of its operations, including the
potential exercise of outstanding common stock warrants, the potential
establishment of strategic partnerships and ventures, and potential public or
private equity placements.
"Our financial results for both the fourth quarter and fiscal year reflect
the efforts and expenses associated with bringing our soft tissue augmentation
products into human clinical trials," said Dr. J. Thomas Parmeter, PPTI's
President and Chief Executive Officer. "Our product pipeline is stronger and
better defined than ever before. Our urethral bulking agent is in clinical
trials, our dermal augmentation product for use in dermatology, plastic and
reconstructive surgery has received IDE approval from the FDA and is scheduled
to begin clinical trials within a few weeks, and we've directed the focus of
our surgical adhesive technology toward the treatment of lower back pain
through spinal disc repair. We are currently in various stages of discussion
with potential strategic partners for both our soft tissue augmentation
products and our surgical adhesive product opportunities."
Protein Polymer Technologies, Inc., a San Diego-based biotechnology
company, has developed a protein-based technology platform that allows
creation of new biomaterials that can target multiple applications in
biomedical markets. The different classes of biocompatible polymers developed
by PPTI have been genetically engineered to enable cell growth, promote the
regeneration of tissue, bond to synthetic surfaces, and resorb into tissue at
controlled rates. Targeted applications include tissue adhesives and
sealants, tissue augmentation, wound healing, and drug delivery vehicles.
This press release may contain forward-looking statements that are based
on management's expectations. Actual results could differ materially from
those expressed here; further, the Company is not obligated to comment
specifically on those differences. Risks associated with the Company's
activities include raising adequate capital to continue operations, scientific
and product development uncertainties, competitive products and approaches,
continuing collaborative partnership interest and funding, regulatory testing
and approvals, and manufacturing scale-up. The reader is encouraged to refer
to the Company's 1999 Annual Report and 10-KSB, and recent filings with the
Securities and Exchange Commission, copies of which are available from the
Company, to further ascertain the risks associated with the above statements.
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
2000 1999 2000 1999
SUMMARY OF OPERATIONS
Contract revenue $514,156 $-- $1,107,396 $2,320
Interest income 10,894 9,768 79,087 39,343
Product and other
income -- 3,677 3,012 54,304
Total revenues 525,050 13,445 1,189,495 95,967
Total expenses 898,812 1,238,779 3,687,572 4,353,498
Net loss $(373,762) $(1,225,334) $(2,498,077) $(4,257,531)
Undeclared and/or
paid accumulated
dividends on
Preferred Stock 69,980 69,980 277,639 277,639
Net loss applicable
to common
shareholders $(443,742) $(1,295,314) $(2,775,716) $(4,535,170)
Loss per share $(0.02) $(0.10) $(0.16) $(0.36)
Weighted average
shares used in
computing loss
per share 18,910,313 13,443,510 17,771,744 12,570,987
As of As of
Dec. 31, 2000 Dec. 31, 1999
BALANCE SHEET INFORMATION (audited)
Cash and cash equivalents $866,000 $156,000
Working capital 143,000 (458,000)
Total assets 1,383,000 741,000
Total capital invested 40,014,000 37,299,000
Accumulated deficit $(39,744,000) $(37,245,000)
SOURCE Protein Polymer Technologies, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/721876.html or fax,
800-758-5804, ext. 721876
CONTACT:
J. Thomas Parmeter, President, or Janis
Neves, Director of Finance, both of Protein Polymer Technologies,
Inc., 858-558-6064, info@ppti.com
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