SAN DIEGO, March 5 /PRNewswire-FirstCall/ -- Protein Polymer Technologies,
Inc. (OTC Bulletin Board: PPTI), reports today its financial results for the
fourth quarter and the year ended December 31, 2001. For the quarter, the
Company had a net loss applicable to common shareholders of $863,000
($0.04 a share), versus a net loss of $444,000 ($0.02 a share) for the
comparable period a year ago. For the year, PPTI had a net loss applicable to
common shareholders of $3,424,000 ($0.16 a share), versus a net loss of
$2,776,000 ($0.16 a share) for the comparable period a year ago. The net
loss, and the net loss per share amounts include accumulated and distributed
dividends related to the Company's preferred stock.
Contract and licensing revenue, and product and interest income totaled
$241,000 for the fourth quarter and $830,000 for the twelve month period ended
December 31, 2001, compared to $525,000 and $1,189,000 respectively for the
same periods last year. The contract and licensing revenue primarily
represents the amortized portion of an up-front license payment of $1 million
that is associated with the formation of a partnership with Femcare Ltd., of
Nottingham England to commercialize the Company's product for the treatment of
female stress urinary incontinence in Europe and Australia, and from research
and development payments from the Company's affiliate, SpineWave, Inc., formed
with Windamere Venture Partners in April 2001 to develop and commercialize a
spinal disc repair product for the treatment of lower back pain. The
$1 million Femcare license fee is being recognized as income over a three-year
period.
Operating expenses for the quarter were $1,034,000, as compared to
$899,000 for the same period in 2000. Operating expenses for the year were
$3,977,000 as compared to $3,688,000 for the same period in 2000. In general,
operating expenses for the past two years have remained low due primarily to
reductions in personnel and expenditures implemented during 1999. To the
extent that resources become available, expenses are expected to rise in
subsequent quarters due to the increased expenditures for expanded human
clinical testing and patient follow-up of the Company's injectable urethral
bulking agent for the treatment of female stress urinary incontinence, and of
the Company's injectable hydrogel for the treatment of dermal contour defects
(scars, wrinkles, and lines), however, their can be no assurance that
additional resources will become available.
PPTI's cash balance as of December 31, 2001 was $234,000, as compared to
$866,000 as of December 31, 2000. In January 2002, the Company received
$990,000 in additional capital from the exercise of outstanding common stock
warrants. In combination with anticipated additional contract and license
payments, and revenue projected for the delivery of clinical testing
materials, the Company's cash is expected to meet the Company's anticipated
capital requirements through June 2002. If additional capital is not obtained
in the near future, the Company will be required to reduce the use of cash
through layoffs and other cost reduction steps.
Protein Polymer Technologies, Inc., is a biotechnology company focused on
developing products to improve medical and surgical outcomes. From its
inception in 1988, PPTI has been a pioneer in protein design and synthesis,
developing an extensive portfolio of proprietary biomaterials. These
genetically engineered biomaterials are high molecular weight proteins,
processed into products with physical and biological characteristics tailored
to specific clinical performance requirements. Targeted products include
urethral bulking agents for the treatment of stress urinary incontinence,
dermal augmentation products for cosmetic and reconstructive surgery, surgical
adhesives and sealants for repair of spinal discs, scaffolds for wound healing
and tissue engineering, and depots for local drug delivery.
This press release contains forward-looking statements that are based on
management's views and 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 clinical 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 2000 Annual Report on Form 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,
2001 2000 2001 2000
SUMMARY OF OPERATIONS
Contract revenue $233,334 $514,156 $783,334 $1,107,396
Interest income 1,921 10,894 40,778 79,087
Product and other
income 5,912 -- 5,950 3,012
Total revenues 241,167 525,050 830,062 1,189,495
Total expenses 1,034,019 898,812 3,976,890 3,687,572
Net loss $(792,852) $(373,762) $(3,146,828) $(2,498,077)
Undeclared and/or
paid dividends on
Preferred Stock 69,980 69,980 277,639 277,639
Net loss applicable
to common
shareholders $(862,832) $(443,742) $(3,424,467) $(2,775,716)
Net loss per common
share -- basic and
diluted $(0.04) $(0.02) $(0.16) $(0.16)
Shares used in
computing net loss
per share -- basic
and diluted 21,740,650 18,910,313 20,964,233 17,771,744
As of As of
Dec. 31, 2001 Dec. 31, 2000
BALANCE SHEET INFORMATION
Cash and cash equivalents $234,000 $866,000
Working capital (585,000) 143,000
Total assets 527,000 1,383,000
Total capital invested 42,492,000 40,014,000
Accumulated deficit $(42,890,000) $(39,744,000)
SOURCE Protein Polymer Technologies, Inc.
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CONTACT:
J. Thomas Parmeter, President, or Janis Y.
Neves, Director of Finance & Administration of Protein Polymer
Technologies, Inc., +1-858-558-6064, info@ppti.com
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