SAN DIEGO, Aug. 17 /PRNewswire-FirstCall/ -- Protein Polymer Technologies,
Inc. (OTC Bulletin Board: PPTI), announced today financial results for the
second quarter and the six months ended June 30, 2004.
The net loss for the quarter ended June 30, 2004 was $858,000 ($0.02 per
share), compared to a net loss of $437,000 ($0.01 per share), for the same
period in 2003. The net loss for the six months ended June 30, 2004 was
$1,778,000 ($0.05 per share), compared to a net loss of $2,180,000 ($0.07 per
share), for the six months ended June 30, 2003. The net loss and the net loss
per share amounts for both the 2003 and 2004 periods include accumulated
dividends related to the Company's preferred stock, and "imputed dividend"
charges pertaining to its sale of Series I Convertible Preferred Stock during
the second quarter of 2003.
Total revenue was $200,000 for the quarter ended June 30, 2004, compared
to $752,000 for the same period in 2003. Total revenue was $391,000 for the
six months ended June 30, 2004, compared to $1,205,000 for the same period in
2003. 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. The decrease in contract revenue in 2004, particularly during the three
months ended June 30, 2004 as compared to the same period in 2003, is due to
the completion of the majority of work, including preclinical testing,
required to support Spine Wave's initiation of human clinical testing of the
injectable spinal disc nucleus product.
Operating expenses for the quarter were $989,000, as compared to
$1,051,000 for the same period in 2003, and $2,031,000 for the six months
ended June 30, 2004 as compared to $1,874,000 for the six months ended 2003.
When additional capital becomes 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, 2004, PPTI had a negative working capital of $363,000
compared to $1,192,000 as of December 31, 2003. PPTI's cash as of June 30,
2004 was $69,000, compared to $1,085,000 on December 31, 2003. Since the end
of June, the Company has received $900,000 in cash and cash commitments in
return for short term promissory notes and warrants. In combination with
anticipated additional contract and license payments, and revenue projected
for the delivery of clinical testing materials, the Company's cash as of
August 17, 2004 is expected to meet the Company's anticipated capital
requirements until October 2004.
"We are currently in discussions with potential sources of additional
equity and convertible debt funding, although there can be no assurance that
these discussions will result in additional funding," said J. Thomas Parmeter,
Chairman and Chief Executive Officer of Protein Polymer Technologies.
"Substantial additional capital resources will be required to fund future
expenditures related to our research, development, clinical trials, and
product marketing activities. If adequate funds are not available, we will be
required to significantly curtail our operating plans and may have to sell or
license out significant portions of our technology or potential products, or
cease operations."
"Conversely, if we resolve our liquidity problems," Dr. Parmeter commented
further, "I view PPTI's future optimistically. With the recent appointment of
Dr. Donald Kaplan as President and Chief Operating Officer, we are
aggressively pursuing new ways to capitalize on our large intellectual
property portfolio. Dr. Kaplan, previously Senior Vice President, Operations
and Technology at U.S. Surgical Corporation and a recognized leader in
research, development and commercialization of surgery and wound closure
devices, is uniquely qualified to lead this effort. For example, we are
leveraging the development of our adhesives technology for the injectable
spinal disc repair product towards application as high strength surgical
sealants. Such sealants are designed to stop air and fluid leaks associated
with the use of sutures and staples in a variety of surgical procedures. In
addition, we continue to focus on the clinical trials of our urethral bulking
agent for treatment of female stress urinary incontinence and our injectable
hydrogel for treatment of dermal contour defects such as scars, wrinkles and
lines. Finally, with Spine Wave beginning clinical trials of the injectable
disc nucleus product (IDN) for the treatment of lower back pain, we have begun
discussions with Spine Wave regarding the commercial manufacture of the IDN
product."
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-five
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 2003 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,
2004 2003 2004 2003
SUMMARY OF OPERATIONS
Contract revenue $199,366 $742,696 $388,416 $1,193,679
Interest income 866 9,263 2,824 10,847
Product and other income 0 0 6 0
Total revenues 200,232 751,959 391,246 1,204,526
Total expenses 988,799 1,051,491 2,031,200 1,873,779
Net loss $(788,567) $(299,532) $(1,639,954) $(669,253)
Undeclared and/or
paid dividends on
Preferred Stock 69,220 137,082 137,678 1,510,925
Net loss applicable
to common
shareholders $(857,787) $(436,614) $(1,777,632) $(2,180,178)
Net loss per common
share - basic and
diluted $(0.02) $(0.01) $(0.05) $(0.07)
Shares used in
computing net loss
per share - basic
and diluted 38,091,587 34,037,634 37,702,398 31,926,744
As of As of
June 30, 2004 Dec. 31, 2003
BALANCE SHEET INFORMATION
Cash and cash equivalents $69,000 $1,085,000
Working capital (363,000) 1,192,000
Total assets 414,000 1,692,000
Total capital invested 49,010,000 48,809,000
Accumulated deficit $(49,113,000) $(47,473,000)
SOURCE Protein Polymer Technologies, Inc.
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CONTACT:
J. Thomas Parmeter, Chairman,
+1-858-558-6064, jtp@ppti.com, or Janis Y. Neves, Director of
Finance, +1-858-558-6064, jneves@ppti.com, both of Protein
Polymer Technologies, Inc.
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