SAN DIEGO, Aug. 10 /PRNewswire/ -- Protein Polymer Technologies, Inc.
(OTC Bulletin Board: PPTI), reports today its financial results for the second
quarter and the six months ended June 30, 2001. For the quarter, the Company
had a net loss applicable to common shareholders of $870,000 ($0.04 a share),
versus a net loss of $988,000 ($0.05 a share) for the comparable period a year
ago. Year-to-date, PPTI had a net loss applicable to common shareholders of
$1,809,000 ($0.09 a share), versus a net loss of $1,535,000 ($0.09 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
$202,000 for the second quarter and $293,000 for the six month period ended
June 30, 2001, compared to $135,000 and $539,000 respectively for the same
periods last year. The 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 research
and development payments from the Company's affiliate, SpineWave, Inc., formed
with Windamere Venture Partners in April 2001 to develop and commercialize a
spinal disc repair product for the treatment of lower backpain. The
$1 million Femcare license fee is being recognized as income over a three year
period.
Operating expenses for the quarter were $1,002,000, as compared to
$1,054,000 for the same period in 2000. Operating expenses for the
year-to-date were $1,965,000 as compared to $1,936,000 for the same period in
2000. Operating expenses have remained lower due primarily to reductions in
personnel and expenditures implemented during 1999, and to a lesser degree to
reduced research and development expenses following the completion of
preclinical testing and approval by the U.S. Food and Drug Administration
(FDA) to begin human clinical trials 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, to the extent that resources are
available, 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 June 30, 2001 was $1,114,000. 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 in developing its
tissue augmentation and tissue adhesive technology. However, our ability to
complete U.S. clinical testing of the incontinence product and the dermal
filler product is dependent on identifying additional sources of working
capital," said J. Thomas Parmeter, PPTI's President and Chief Executive
Officer. Over the remainder of the year, the Company will seek to raise
additional funds for continuing operations through private or public
offerings, and through additional collaborative agreements."
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, 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 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 Six months ended
June 30, June 30,
2001 2000 2001 2000
SUMMARY OF OPERATIONS
Contract revenue $183,333 $103,333 $266,667 $489,907
Interest income 18,452 31,842 26,681 45,651
Product and other income 0 145 38 3,012
Total revenues 201,785 135,320 293,386 538,570
Total expenses 1,002,450 1,054,462 1,965,164 1,936,182
Net loss $(800,665) $(919,142) $(1,671,778) $(1,397,612)
Undeclared and/or
paid dividends on
Preferred Stock 69,220 69,220 137,678 137,678
Net loss applicable
to common
shareholders $(869,885) $(988,362) $(1,809,456) $(1,535,290)
Net loss per
common share -
basic and diluted $(0.04) $(0.05) $(0.09) $(0.09)
Shares used in
computing net loss
per share -
basic and diluted 21,571,994 18,378,010 20,250,395 16,849,228
As of As of
June 30, 2001 Dec. 31, 2000
BALANCE SHEET INFORMATION
Cash and cash equivalents $1,114,000 $866,000
Working capital (419,000) 143,000
Total assets 1,609,000 1,383,000
Total capital invested 41,267,000 40,014,000
Accumulated deficit $ (41,415,000) $ (39,744,000)
SOURCE Protein Polymer Technologies, Inc.
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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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