SAN DIEGO, June 25 /PRNewswire/ -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI) today announced that it is reducing its work force by
approximately 60 percent. The layoff of eighteen employees is effective as of
June 30, 1999. Even under reduced operations, the Company currently has less
than two months cash reserves.
PPTI will continue to focus on preparing for the initiation of human
clinical testing of the Company's urethral bulking agent for the treatment of
female stress urinary incontinence, and on developing strategic partnering
relationships. In May, the Company received FDA approval to begin a pilot
study with its incontinence product; actual initiation is dependent upon the
Company raising additional cash or completing a partnership agreement. To
date, the Company's efforts to consummate a strategic partnering relationship
have not met with success, although discussions are still in progress.
"Conditions in the biotechnology capital markets have made it almost
impossible for companies without sales or near-term expectations for FDA
product approvals to raise additional capital," said J. Thomas Parmeter,
PPTI's President and CEO. "For small public biotech companies, this capital
markets problem has been compounded by cutbacks in corporate budgets for
research and development, in particular as pertaining to products facing
several years of regulatory approvals. We are working hard to surmount these
difficulties and hope to be able to restore the Company to full operations in
the near future. However, any change in operations is dependent upon
completing partnering or equity financing arrangements, and there can be no
assurance that this will happen within the time available."
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, 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, compliance
with Nasdaq listing requirements, scientific and product development
uncertainties, competitive products and approaches, obtaining 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 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.
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, Finance and Administration, both of Protein
Polymer Technologies, Inc., 619-558-6064, info@ppti.com
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