SAN DIEGO, July 14 /PRNewswire-FirstCall/ -- Protein Polymer Technologies,
Inc. (OTC Bulletin Board: PPTI), a biotechnology device company that is a
pioneer in protein design and synthesis, announced today that it has issued a
letter of intent to acquire Surgica Corporation, a medical device company that
develops, manufacturers and markets embolization products. Embolization is a
minimally invasive procedure performed by interventional radiologists, used to
treat uterine fibroids, liver cancer and neurovascular conditions.
Under the terms of the arrangement, PPTI would acquire Surgica's assets
with a combination of PPTI common stock and cash. Assets comprise
intellectual property including one issued patent, product lines and an
FDA-approved manufacturing facility. The company currently has three FDA-
approved Polyvinyl Alcohol (PVA) product lines -- PVA Plus(TM), MicroStat(TM)
and MaxiStat(TM), with one additional product under development. Surgica's
PVA foam embolization products are manufactured with a uniform and
controlled-size pore structure, in both spherical and standard particle forms,
allowing for even hydration and fluid suspension properties. These properties
provide for more consistent performance, more precise delivery and less
potential for catheter occlusion, improving procedure efficiency and safety.
Embolization products are used to treat a variety of medical conditions by
blocking blood flow to tissues, damaged blood vessels, vascular malformations
and tumors including fibroids.
Surgica's PVA Plus product is currently marketed through a partnership
with AngioDynamics, Inc., a leader in the field of interventional radiology.
"The acquisition of Surgica would represent an excellent strategic fit and
an opportunity for PPTI to transition from a research and development company
to one that commercializes innovative products," commented William N.
Plamondon III, Chief Executive Officer of Protein Polymer Technologies. "We
believe that adding Surgica's product lines will allow us to enter the growing
embolization marketplace and will diversify and significantly expand our
revenue."
PVA has an exceptional history of safety and utility in medical devices.
One of the most rapidly growing areas for embolization is the non-surgical
treatment of uterine fibroids. Approximately 70 percent of the projected
275,000 hysterectomies performed to treat uterine fibroids in 2005 would
benefit from this minimally invasive procedure. The company estimates that a
conservative annual market potential for uterine fibroid embolization (UFE)
could exceed $200 million in the U.S. and $300-$500 million worldwide.
Embolic agents are also used in the treatment of inoperable liver cancer,
a condition which affects approximately 75,000 people in the United States,
with an annual market potential of $200 million U.S. and $400 million
worldwide.
Upon completion of the acquisition, Surgica would become a division of
PPTI. Louis R. Matson, Founder and Chief Executive Officer of Surgica, would
assume the role of division President, reporting to Mr. Plamondon. Closing is
subject to definitive documentation, Board approvals and other customary
conditions. The transaction is expected to be completed in late third quarter
or early fourth quarter 2005.
"Surgica's employees and management have done a tremendous job in building
the value and capabilities of the company. We look forward to welcoming the
Surgica team to PPTI," commented Donald Kaplan, PhD, President and Chief
Operating Officer of PPTI.
About Protein Polymer Technologies, Inc.
Protein Polymer Technologies, Inc. is a biotechnology company that
discovers and develops innovative therapeutic devices to improve medical and
surgical outcomes. The Company focuses on developing technology and products
to be used for soft tissue augmentation, tissue adhesives and sealants, wound
healing support and drug delivery devices. Protein Polymer Technologies
proprietary protein-based biomaterials are uniquely tailored to optimize
clinical performance and contain no human or animal components that could
potentially transmit or cause disease. The company is headquartered in San
Diego, California. For additional information about the company, please visit
http://www.ppti.com.
To date, PPTI has been issued twenty-six 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 2004 Annual Report Form 10-KSB, and 10KSB/A 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.
SOURCE Protein Polymer Technologies, Inc.
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Related links:
http://www.ppti.com
CONTACT:
Erin Davis of Protein Polymer Technologies,
Inc., +1-858-558-6064, ext. 120; or Bryan deCastro,
+1-631-495-9177, or Carole Boucard, +1-954-370-2524, both of
Creative Public Relations, for Protein Polymer Technologies, Inc.
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