SAN DIEGO, March 7 /PRNewswire/ -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI) reports today its 1999 financial results for the fourth quarter
and the year, both ended December 31, 1999. In addition, the Company
announced it recently had raised $2.1 million through the conversion of common
stock warrants held by a small group of accredited and institutional
investors. In combination with approximately $1,400,000 in cash and
receivables generated from licensing and R&D agreements, PPTI has raised a
total of approximately $3.5 million since the beginning of 2000. The Company
intends to use the proceeds to continue and expand human clinical testing of
the Company's lead product, an injectable treatment for female stress urinary
incontinence.
1999 Financial Results. For the fourth quarter of 1999, the Company had a
net loss applicable to common shareholders of $1,295,000, or $.10 per share,
versus a net loss of $1,520,000, or $0.14 per share, for the comparable period
in 1998. For the year ended December 31, 1999, the Company had a net loss
applicable to common shareholders of $4,535,000, or $0.36 per share, versus a
net loss of $9,183,000, or $0.88 per share, for the comparable period in 1998.
The difference in year end results is due primarily to a non-cash, "imputed
dividends" expense in 1998 that resulted from the sale and issuance of the
Company's Series E Convertible Preferred Stock. Excluding the effect of the
imputed dividends, the net loss applicable to common shareholders for 1998
would have been $5,638,000 ($.54 per share).
Contract revenues, interest, and product income totaled $13,445 for the
fourth quarter of 1999, compared to $74,000 for the same period in 1998. For
the year, these revenues totaled $96,000, compared to $256,000 for the same
period in 1998. The decrease in contract revenue reflects the Company's
increased focus on moving the incontinence product into clinical testing,
prior to seeking a strategic partner to help defray the development and
clinical testing costs. Operating expenses for the fourth quarter were
$1,239,000, as compared to $1,526,000 for the same period in 1998. Operating
expenses for the year totaled $4,353,000, compared to $5,894,000 for the same
period in 1998. For both the fourth quarter and the year, the decreased
expenditures were due primarily to a corporate downsizing in mid year, and
completion of preclinical testing and reduced regulatory expense in
preparation for clinical trials of the Company's soft tissue augmentation
products that began in December 1999.
As of December 31, 1999, the Company had $156,000 in cash and cash
equivalents which, in combination with the cash and receivables raised in
January and February 2000, the Company believes is sufficient to fund its
operations through December 2000. In addition, PPTI is pursuing a number of
alternatives to meet the continuing capital requirements of its operations.
"Our financial results for both the fourth quarter and fiscal year reflect
the necessary costs associated with bringing our soft tissue augmentation
products into human clinical trials," said Dr. J. Thomas Parmeter, PPTI's
President and Chief Executive Officer. "We expect to continue to spend at
this level and higher, to the extent capital is available, as we continue
clinical trials of our incontinence product this year."
"Our product pipeline is stronger and better defined than ever before,"
Dr. Parmeter added. "Our urethral bulking agents are in clinical trials, our
dermal and reconstructive product is being prepared for an IDE submission to
the FDA for approval, 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."
Subsequent Financing Events. The Company received in January and February
2000 approximately $1,400,000 in cash and receivables primarily from the
previously announced licensing and R&D agreements with Femcare, Ltd. for the
European and Australian marketing rights to the stress urinary incontinence
bulking product, and from Sanyo Chemical Industries, Ltd. for the commercial
rights to PPTI's in vitro cell culture business and existing inventory. Also
in February 2000, the Company received approximately $2.1 million from the
exercise of common stock warrants originally granted as part of the sale of
Series G Convertible Preferred Stock and warrants. The Preferred Stock,
warrants and underlying common stock have not been registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration
requirements.
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 1998 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.
PPTI's press releases are on the internet at http://www.ppti.com or on PR
Newswire's Company News On Call at http://www.prnewswire.com and can be
received via Fax on Demand at (800) 758-5804 extension 721876.
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
1999 1998 1999 1998
SUMMARY OF OPERATIONS
Contract revenue $ -- $ -- $2,320 $50,000
Interest income 9,768 44,641 39,343 134,978
Product and other
income 3,677 29,827 54,304 70,846
Total revenues 13,445 74,468 95,967 255,824
Total expenses 1,238,779 1,525,541 4,353,498 5,894,027
Net loss $(1,225,334) $(1,451,073) $(4,257,531) $(5,638,203)
Undeclared and/or
paid accumulated
dividends on
Preferred Stock 69,980 69,410 277,639 3,544,323
Net loss applicable
to common
shareholders $(1,295,314) $(1,520,483) $(4,535,170) $(9,182,526)
Loss per share $(0.10) $(0.14) $(0.36) $(0.88)
Weighted average
shares used in
computing loss
per share 13,443,510 10,690,097 12,570,987 10,484,277
As of As of
Dec. 31, 1999 Dec. 31, 1998
BALANCE SHEET INFORMATION (audited)
Cash and cash equivalents $156,000 $1,383,000
Working capital (458,000) 600,000
Total assets 741,000 2,225,000
Total capital invested 37,299,000 34,258,000
Accumulated deficit $(37,245,000) $(32,988,000)
SOURCE Protein Polymer Technologies, Inc.
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Related links:
http://www.ppti.com
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., 619-558-6064, info@ppti.com
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