Highlights:
* Supply and Services Agreement between the PPTI and Spine Wave
extended; PPTI estimates approximately $1.2 million in R&D payments
* PPTI obtained FDA approval to expand pilot clinical studies for the
correction of dermal contour deficiencies
* Fourth quarter total revenues were $312,000; net loss for the quarter
was $752,000
SAN DIEGO, March 11 /PRNewswire-FirstCall/ -- Protein Polymer
Technologies, Inc. (OTC Bulletin Board: PPTI) reported today financial results
for the fourth quarter and the year ended December 31, 2003.
For the quarter, the Company had a net loss applicable to common
shareholders of $752,000 ($0.02 a share), versus a net loss of $168,000
($0.01 a share) for the comparable period a year ago. For the year, PPTI had
a net loss applicable to common shareholders of $3,844,000 ($0.11 a share),
versus a net loss of $1,294,000 ($0.05 a share) for the comparable period a
year ago. The net loss and the net loss per share amounts included
accumulated and distributed dividends related to the Company's preferred
stock. The net loss in 2003 also included a non-cash "imputed dividend"
expense of $1,373,000 to account for the difference between the fair market
value of the common stock and the conversion price of the preferred stock into
common stock in connection with the sale of Series I Convertible Preferred
Stock in March and May 2003.
Revenues totaled $312,000 for the fourth quarter and $1,617,000 for the
twelve month period ended December 31, 2003, compared to $866,000 and
$3,019,000, respectively, for the same periods last year. The decrease in
contract and licensing revenue primarily represents a decrease in research and
development payments from Spine Wave, Inc. due to completion of preclinical
studies in support of Spine Wave's Investigational Device Exemption (IDE)
filing with the U.S. Food and Drug Administration requesting permission to
begin human clinical testing. Spine Wave was formed in April 2001 to develop
and commercialize a spinal disc repair product for the treatment of lower back
pain based on technology PPTI licensed to Spine Wave.
Operating expenses for the quarter were $994,000, as compared to
$984,000 for the same period in 2002. Operating expenses for the year were
$3,811,000, as compared to $4,035,000 for the same period in 2002. In
general, operating expenses for the past two years have remained low due
primarily to reductions in personnel and expenditures implemented during the
past three years. To the extent that resources become available, expenses are
expected to rise in subsequent quarters due to increased expenditures for
expanded human clinical testing and patient follow-up of PPTI's injectable
hydrogel for the treatment of dermal contour defects, injectable urethral
bulking agent for the treatment of female stress urinary incontinence, and the
preclinical development of its surgical sealant designed to eliminate leaks
following lung, bowel and cardiovascular surgery. However, there can be no
assurance that additional resources will become available.
PPTI's cash balance as of December 31, 2003 was $1,085,000, as compared to
$734,000 as of December 31, 2002. As of December 31, 2003, the Company had
working capital of $1,192,000 as compared to $189,000 as of December 31, 2002.
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 May 2004. 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.
As previously announced, the research and development contract between
PPTI and Spine Wave was extended during the fourth quarter. PPTI estimates it
will receive from Spine Wave approximately $1.2 million in R&D payments under
the amended agreement. PPTI is continuing, on Spine Wave's behalf, product
characterization studies and preparations for the supply of product to be used
in human clinical trials following required regulatory approvals.
PPTI recently received FDA approval to expand the pilot clinical trial for
its dermal augmentation product for the treatment of dermal contour
deficiencies (wrinkles, lines, and scars). The additional human data will be
used in support of an application to conduct a projected pivotal clinical
study. Injected as a liquid into the dermal tissue, the protein polymer
solution rapidly transitions into a durable, flexible hydrogel that is then
shaped by the physician for the desired appearance. The expansion will
include 20 additional patients, with enrollment anticipated over the next
90 days.
Protein Polymer Technologies, Inc. is a San Diego-based company focused on
developing bioactive 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, scaffolds for wound healing and tissue engineering,
and depots for local drug delivery. To date, PPTI has been issued twenty-five
U.S. Patents on its core technology with corresponding issued and pending
patents in key international markets.
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 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 2002 and 2003 Annual Report Form 10-KSB and other 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,
2003 2002 2003 2002
SUMMARY OF OPERATIONS
Contract revenue $307,940 $633,487 $1,597,415 $2,760,571
Interest income 3,679 2,115 19,903 6,810
Product and other
income -- 250,000 -- 251,500
Total revenues 311,619 885,602 1,617,318 3,018,881
Total expenses 994,057 984,018 3,810,557 4,035,038
Net loss $(682,438) $(98,416) $(2,193,239) $(1,016,157)
Undeclared and/or
paid dividends on
Preferred Stock 69,980 69,980 1,650,886 277,639
Net loss applicable
to common
shareholders $(752,418) $(168,396) $(3,844,125) $(1,293,796)
Net loss per
common share -
basic and diluted $(0.02) $(0.01) $(0.11) $(0.05)
Shares used in
computing net loss
per share - basic
and diluted 36,796,094 29,724,110 34,362,427 27,659,838
As of As of
Dec. 31, 2003 Dec. 31, 2002
BALANCE SHEET INFORMATION
Cash and cash equivalents $1,085,000 $734,000
Working capital 1,192,000 189,000
Total assets 1,692,000 875,000
Total capital invested 48,809,000 44,182,000
Accumulated deficit $(47,473,000) $(43,907,000)
SOURCE Protein Polymer Technologies, Inc.
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CONTACT:
J. Thomas Parmeter, President, or Janis Y.
Neves, Director of Finance & Administration, both of Protein
Polymer Technologies, Inc., +1-858-558-6064, info@ppti.com; or
investors/media, Stephanie Carrington of The Ruth Group,
+1-646-536-7017, scarrington@theruthgroup.com for Protein Polymer
Technologies, Inc.
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