SAN DIEGO, Aug. 17 /PRNewswire/ -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI) reports today its financial results for the second quarter
ended June 30, 1999. In addition, the Company today completed an initial
closing of a private placement of its Series G Convertible Preferred Stock
with a small group of accredited and institutional investors. PPTI received
approximately $1.8 million at the initial closing. The proceeds will enable
the Company to begin human clinical testing scheduled to begin this fall of
the Company's lead product, an injectable treatment for female stress urinary
incontinence.
2nd Quarter 1999 Financial Results: In the second quarter of 1999, PPTI
had a net loss applicable to common shareholders of $1,241,000 ($.10 a share),
versus a net loss of $4,786,000 ($.46 a share) for the comparable period a
year ago. For the six months ended June 30, 1999, the Company had a net loss
applicable to common shareholders of $2,415,000 ($.21 a share), versus a net
loss of $6,133,000 ($.59 a share) for the comparable period a year ago. The
net loss and loss per share include imputed, accumulated and distributed
dividends related to the Company's preferred stock. As of June 30, 1999, PPTI
had cash and cash equivalents of $141,000. On a proforma basis, including the
proceeds of the initial closing of the Series G preferred stock, the Company
had cash and cash equivalents of approximately $1,900,000 net of offering
expenses.
Contract revenues, interest and product income totaled $20,000 for the
second quarter, compared to $45,000 for the same period last year, the
decrease being due to reduced contract revenues. For the six months ended
June 30, 1999, these revenues totaled $56,000, compared to $133,000 for the
same period last year. Operating expenses for the quarter were $1,192,000, as
compared to $1,496,000 for the same period in 1998. For the six months ended
June 30, 1999, operating expenses totaled $2,333,000, compared to $2,860,000
for the same period last year. The decrease in both periods is due primarily
to reduced research and development expenses and the completion of non-
reoccurring preclinical studies required by the U.S. Food & Drug
Administration (FDA) prior to beginning human clinical testing. The Company's
product for the relief of female stress urinary incontinence was approved to
begin human clinical testing on May 20th. The Company's expenses are
anticipated to rise when the human clinical trials are initiated, currently
scheduled for the fourth quarter of 1999.
For both the 2nd quarter and six month period, the Company continued
research and development efforts in its surgical adhesives and sealants
program, with particular emphasis on the development of an adhesive spinal
disc repair product for the treatment of lower back pain, in addition to
expanding its program in hydrogel-based polymers targeted for use in cosmetic,
plastic and reconstructive, and urological soft tissue augmentation surgical
procedures.
Series G Preferred Stock Offering: Each share of Series G Convertible
Preferred Stock is priced at $100 per share, and the total offering of up to
35,000 shares provides for additional closings between now and the middle of
September. Each share can be converted at any time by the holder into common
stock at a price of $0.50 per share, subject to certain antidilution
adjustments. Each share of Preferred Stock also receives a common stock
warrant, exercisable for 12 months, that allows the holder to acquire 200
shares of PPTI common stock at a price of $0.50 per share. The Preferred
Stock, warrants and underlying common stock have not been registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration
requirements.
Protein Polymer Technologies, Inc., a San Diego-based biotechnology
company, has developed a protein-based technology platform that allows
creation of new biomaterials which target multiple applications in biomedical
markets. The different classes of biocompatible polymers developed by PPTI
have been genetically engineered to enable cell growth, promote the
regeneration of tissue, bond to synthetic surfaces and resorb into tissue at
controlled rates. Targeted applications include tissue adhesives and
sealants, tissue augmentation, wound healing, and drug delivery vehicles.
This press release may contain forward-looking statements that are based
on management's 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 1998 Annual Report and 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.
PPTI's press releases are on the internet at http://www.ppti.com or on
PR Newswire's Company News On Call at http://www.prnewswire.com and can be
received via Fax on Demand at (800) 758-5804 extension 721876.
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Six months ended
June 30, June 30,
1999 1998 1999 1998
SUMMARY OF OPERATIONS
Contract revenue $-- $-- $-- $50,000
Interest income 6,556 39,909 19,559 48,565
Product and
other income 13,868 5,506 36,516 34,295
Total revenues 20,424 45,415 56,075 132,860
Total expenses 1,191,746 1,495,632 2,333,496 2,860,314
Net loss $(1,171,322) $(1,450,217) $(2,277,421) $(2,727,454)
Undeclared and/or
paid accumulated
dividends on
Preferred Stock 69,220 3,335,936 137,678 3,405,503
Net loss applicable
to common
shareholders $(1,240,542) $(4,786,153) $(2,415,099) $(6,132,957)
Loss per share $(0.10) $(0.46) $(0.21) $(0.59)
Weighted average
shares used
in computing loss
per share 12,505,778 10,471,922 11,727,586 10,450,627
As of As of
June 30, 1999 Dec. 31, 1998
BALANCE SHEET INFORMATION (audited)
Cash, cash equivalents and
short-term investments $141,000 $1,383,000
Working capital (597,000) 600,000
Total assets 846,000 2,225,000
Total capital invested 35,215,000 34,258,000
Accumulated deficit (35,265,000) (32,988,000)
SOURCE Protein Polymer Technologies, Inc.
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http://www.ppti.com
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 of Finance, of Protein Polymer Technologies,
Inc., 619-558-6064, info@ppti.com
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