SAN DIEGO, May 15 /PRNewswire-FirstCall/ -- Protein Polymer Technologies,
Inc. (OTC Bulletin Board: PPTI), reports today its financial results for the
first quarter ended March 31, 2002. For the quarter, the Company had a net
loss applicable to common shareholders of $536,000 ($0.02 a share), versus a
net loss of $940,000 ($0.05 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
$473,000 for the quarter ended March 31, 2002, compared to $92,000 for the
same period last year. The contract and licensing revenue primarily represents
the amortized portion of an up-front license payment 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 Spine Wave, Inc. to develop a spinal disc repair product for the
treatment of lower back pain. PPTI's relationship with Spine Wave was recently
expanded following Spine Wave's completion in March 2002 of a $15 million
Series A Preferred financing. As a result, PPTI will receive a substantial
increase in its R&D payments from Spine Wave over the next four quarters. The
$1 million Femcare license fee is being recognized as income over a three-year
period.
Operating expenses for the quarter were $940,000, as compared to $963,000
for the same period in 2001. 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, there can be no assurance that additional resources will become
available.
PPTI's cash balance as of March 31, 2002 was $459,000, as compared to
$234,000 as of December 31, 2001. 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 July 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 and other surgical
applications, 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 2001 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.
(Financial Data Follows)
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended
March 31,
2002 2001
SUMMARY OF OPERATIONS
Contract and licensing revenue $469,577 $83,333
Product and other income 1,500 38
Interest income 1,620 8,230
Total revenues 472,697 91,601
Total expenses 939,884 962,715
Net loss (467,187) (871,114)
Undeclared and/or paid
dividends on Preferred Stock 68,459 68,459
Net loss applicable to common
shareholders $(535,646) $(939,573)
Net loss per common share -
basic and diluted $(0.02) $(0.05)
Shares used in computing net profit/loss
per share - basic and diluted 24,116,726 18,914,202
As of As of
Mar. 31, 2002 Dec. 31, 2001
BALANCE SHEET INFORMATION
Cash and cash equivalents $459,000 $234,000
Working capital (46,000) (585,000)
Total assets 865,000 527,000
Total capital invested 43,462,000 42,492,000
Accumulated deficit (43,358,000) (42,890,000)
SOURCE Protein Polymer Technologies, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/721876.html
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
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