SAN DIEGO, May 12 /PRNewswire/ -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI.OB), reports today its financial results for the first quarter
ended March 31, 2000. For the quarter, the Company had a net loss applicable
to common shareholders of $548,000 ($0.04 a share), versus a net loss of
$1,175,000 ($0.11 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
$403,000 for the first quarter ended March 31, 2000, compared to $36,000 for
the same period last year. The increase in 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 the sale of the Company's in vitro cell culture business to Sanyo
Chemical Industries, Ltd. of Kyoto, Japan. The $1 million license fee is
being recognized as income over a three year period.
Operating expenses for the quarter were $882,000, as compared to
$1,142,000 for the same period in 1999. In addition to reductions in
personnel and expenditures implemented during the summer of last year, the
decrease in operating expenses was due also to reduced research and
development expenses following the completion of preclinical testing and the
approval of the Company's Investigational Device Exemption by the U.S. Food
and Drug Administration (FDA) granting permission to initiate human clinical
trials of its injectable urethral bulking agent for the treatment of female
stress urinary incontinence. However, expenses are expected to rise in
subsequent quarters due to the increased expenditures for clinical testing and
patient follow-up.
PPTI's cash balance as of March 31, 2000 was $2,154,000. In combination
with anticipated additional contract and license payments, and revenue
projected for the delivery of clinical testing materials, this amount is
expected to meet the Company's anticipated capital requirements until January
2001.
"We are generally pleased with the Company's progress toward
commercializing its tissue augmentation technology, but our ability to
complete U.S. clinical testing of the incontinence product, and to advance the
dermal filler product into human clinical trials is dependent on identifying
additional sources of working capital," said J. Thomas Parmeter, PPTI's
President and Chief Executive Officer. "Over the course of the year, the
Company may seek to raise additional funds for continuing operations through
private or public offerings, and through additional collaborative agreements.
In addition to our recent alliance with Femcare, Ltd., we are in discussions
with other potential strategic partners for both of the soft tissue
augmentation products, and in our redefined surgical adhesives and sealants
program, we are seeking to identify a partner for the development of a new
injectable spinal disc repair product for the treatment of lower back pain."
Protein Polymer Technologies, Inc., is a San Diego-based 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, adhesive fillers 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 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 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
March 31,
2000 1999
SUMMARY OF OPERATIONS
Contract and licensing revenue $386,574 $---
Product and other income 2,866 22,649
Interest income 13,809 13,002
Total revenues 403,249 35,651
Total expenses 881,719 1,141,751
Net loss (478,470) (1,106,100)
Undeclared and/or paid
dividends on Preferred Stock 69,220 68,459
Net loss applicable
to common shareholders $(547,690) $(1,174,559)
Net loss per common share
- basic and diluted $(0.04) $(0.11)
Shares used in computing
net profit/loss per share
- basic and diluted 15,320,744 10,940,748
As of As of
Mar. 31, 2000 Dec. 31, 1999
BALANCE SHEET INFORMATION
Cash and cash equivalents $2,153,893 $156,000
Working capital 1,902,544 (458,000)
Total assets 3,264,421 741,000
Total capital invested 39,471,896 37,299,000
Accumulated deficit (37,723,967) (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 & Administration, 858-558-6064,
info@ppti.com, both of Protein Polymer Technologies, Inc.
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