SAN DIEGO, May 15 /PRNewswire/ -- Protein Polymer Technologies, Inc.
(OTC Bulletin Board: PPTI), reports today its financial results for the first
quarter ended March 31, 2001. For the quarter, the Company had a net loss
applicable to common shareholders of $940,000 ($0.05 a share), versus a net
loss of $548,000 ($0.04 a share) for the comparable period a year ago. The
net loss, and the net loss per share amounts include accumulated dividends
related to the Company's preferred stock.
Contract and licensing revenue, and product and interest income totaled
$92,000 for the first quarter ended March 31, 2001, compared to $403,000 for
the same period last year. The decrease in contract and licensing revenue
primarily represents the one time sale in the first quarter of last year of
the Company's in vitro cell culture business to Sanyo Chemical Industries,
Ltd. of Kyoto, Japan.
Operating expenses for the quarter were $963,000, as compared to $882,000
for the same period in 2000. The increase in operating expenses was due to
increased clinical start up costs and regulatory expenses stemming from the
recent approval of the Company's Investigational Device Exemption by the U.S.
Food and Drug Administration (FDA). The IDE approval allows the Company to
initiate human clinical trials of its tissue augmentation agent for use in
cosmetic surgery and dermatology to correct dermal contour deficiencies
(facial lines, wrinkles, and scars) caused by aging or disease. Expenses are
expected to continue to rise in subsequent quarters due to the increased
expenditures for clinical testing and patient follow-up for both the dermal
product, and for the continuing clinical trials of the Company's urethral
bulking agent for the treatment of female stress urinary incontinence.
PPTI's cash balance as of March 31, 2001 was $2,022,000. 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
2002.
"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 both the incontinence and the dermal product
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 alliances with
Genencor International to develop industrial applications of the technology,
and with Spine Wave, Inc. for the development of a new injectable spinal disc
repair product for the treatment of lower back pain, we are in discussions
with other potential strategic partners for commercializing the soft tissue
augmentation products."
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 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 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
March 31,
2001 2000
SUMMARY OF OPERATIONS
Contract and licensing revenue $83,333 $386,574
Product and other income 38 2,866
Interest income 8,230 13,809
Total revenues 91,601 403,249
Total expenses 962,715 881,719
Net loss (871,114) (478,470)
Undeclared and/or paid
dividends on Preferred Stock 68,459 69,220
Net loss applicable to common
shareholders $(939,573) $(547,690)
Net loss per common share -
basic and diluted $(0.05) $(0.04)
Shares used in computing net profit/loss
per share - basic and diluted 18,914,202 15,320,744
As of As of
Mar. 31, 2001 Dec. 31, 2000
BALANCE SHEET INFORMATION
Cash and cash equivalents $2,022,000 $866,000
Working capital 471,000 143,000
Total assets 2,506,000 1,383,000
Total capital invested 41,265,000 40,014,000
Accumulated deficit (40,615,000) (39,744,000)
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 of Protein Polymer
Technologies, Inc., 858-558-6064, info@ppti.com
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