SAN DIEGO, Aug. 14 /PRNewswire-FirstCall/ -- Protein Polymer Technologies,
Inc. (OTC Bulletin Board: PPTI), announced today financial results for the
second quarter and six-months ended June 30, 2003.
The net loss for the quarter ended June 30, 2003 was $437,000 ($0.01 per
share), compared to a net loss of $374,000 ($0.01 per share), for the same
period in 2002. The net loss for the six-months ended June 30, 2003 was
$2,180,000 ($0.07 per share), compared to a net loss of $910,000 ($0.04 per
share), for the six-months ended June 30, 2002. The net loss and the net loss
per share amounts include accumulated dividends related to the Company's
preferred stock, and "imputed dividend" charges pertaining to its recent sale
of Series I Convertible Preferred Stock.
On March 25 and May 12, 2003, the Company raised $3,005,000 and
$250,000 respectively (less expenses) from the sale of Series I Convertible
Preferred Stock and warrants. In connection with this transaction, the
Company is obligated to include one-time, non-cash "imputed dividend" charges
of $1,305,000 and $68,000 respectively related to the fair market value
difference of the Company's common stock on March 25 and May 12, 2003 and the
conversion price of the Series I Preferred Stock. Excluding the effect of the
imputed dividend expense, the net loss applicable to common shareholders would
have been $369,000 ($0.01 per share) for the quarter ended June 30, 2003 and
$807,000 ($0.03 per share) for the six-months ended June 30, 2003.
Contract and licensing revenue and product and interest income totaled
$752,000 for the quarter ended June 30, 2003, compared to $946,000 for the
same period in 2002. Contract and licensing revenue, and product and interest
income totaled $1,205,000 for the six-months ended June 30, 2003, compared to
$1,418,000 for the same period in 2002. The contract and licensing revenue
primarily represents research and development payments and receivables from
Spine Wave, Inc. for the development of an injectable spinal disc repair
product for the treatment of lower back pain.
Operating expenses for the quarter were $1,051,000, as compared to
$1,251,000 for the same period in 2002, and $1,874,000 for the six-months
ended June 30, 2003 as compared to $2,191,000 for the six months ended 2002.
Operating expenses for the past two years have declined due primarily to
reductions in personnel and discretionary expenditures. 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 lead product candidates currently in
development.
As of June 30, 2003, PPTI had $2,736,000 in working capital as compared to
$189,000 as of December 31, 2002. PPTI's cash as of June 30, 2003 was
$2,444,000, as compared to $734,000 as of December 31, 2002. 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 until
April 2004.
J. Thomas Parmeter, President and Chief Executive Officer of Protein
Polymer Technologies, commented, "We are aggressively pursuing new ways to
capitalize on our extensive intellectual property portfolio. During the
quarter, we announced the appointment of Dr. Phillip Berman as Executive Vice
President for Corporate Strategy, and Dr. Donald Kaplan as Senior Advisor to
our tissue adhesives and sealants program. Dr. Berman, a former Kodak Vice
President, brings focused leadership to the identification of new product
opportunities and the development of new strategic alliances to support the
resulting product R&D and commercialization. Dr. Kaplan, the former Senior
Vice President, Operations and Technology at U.S. Surgical Corporation, is a
recognized leader in research, development and commercialization of surgery
and wound closure devices."
Mr. Parmeter continued, "Separately, the recent completion of our
financing will allow us to meet anticipated capital requirements for our
clinical and product development programs through the first quarter of 2004.
We continue to focus on the clinical trials of our urethral bulking agent for
the treatment of female stress urinary incontinence, and our injectable
hydrogel for the treatment of dermal contour defects such as scars, wrinkles
and lines, and our earlier stage development of surgical tissue adhesive and
sealant products."
Protein Polymer Technologies, Inc., is a San Diego-based company focused
on developing bioactive 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. To date, PPTI has been issued twenty-four
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 2002 Annual Report Form 10-KSB, 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.
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Six months ended
June 30, June 30,
2003 2002 2003 2002
SUMMARY OF OPERATIONS
Contract revenue $742,696 $943,764 $1,193,679 $1,413,342
Interest income 9,263 2,016 10,847 3,636
Product and other
income 0 0 0 1,500
Total revenues 751,959 945,780 1,204,526 1,418,478
Total expenses 1,051,491 1,250,617 1,873,779 2,190,502
Net loss $(299,532) $(304,837) $(669,253) $(772,024)
Undeclared and/or
paid dividends
on Preferred Stock 137,082 69,220 1,510,925 137,678
Net loss applicable
to common shareholders $(436,614) $(374,057) $(2,180,178) $(909,702)
Net loss per common
share - basic and
diluted $(0.01) $(0.01) $(0.07) $(0.04)
Shares used in
computing net loss
per share -
basic and diluted 34,037,634 27,000,455 31,926,744 25,566,557
As of As of
June 30, 2003 Dec. 31, 2002
BALANCE SHEET INFORMATION
Cash and cash equivalents $2,444,000 $734,000
Working capital 2,736,000 189,000
Total assets 3,298,000 875,000
Total capital invested 48,805,000 44,182,000
Accumulated deficit $(45,949,000) $(43,907,000)
SOURCE Protein Polymer Technologies, Inc.
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CONTACT:
J. Thomas Parmeter, President of Protein
Polymer Technologies, Inc., +1-858-558-6064, jtp@ppti.com; or
Jill Meleski, AVP, of The Ruth Group, +1-646-536-7032,
jmeleski@theruthgroup.com, for Protein Polymer Technologies, Inc.
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