SAN DIEGO, Nov. 8 /PRNewswire/ -- Protein Polymer Technologies, Inc.
(OTC Bulletin Board: PPTI), reports today its financial results for the third
quarter and the nine months ended September 30, 2000. For the quarter, the
Company had a net loss applicable to common shareholders of $796,000 ($0.04 a
share), versus a net loss of $827,000 ($0.06 a share) for the comparable
period a year ago. Year-to-date, PPTI had a net loss applicable to common
shareholders of $2,332,000 ($0.13 a share), versus a net loss of $3,243,000
($0.26 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
$126,000 for the third quarter and $664,000 for the nine month period ended
September 30, 2000, compared to $26,000 and $83,000 respectively for the same
periods last year. The increase in 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 the
sale of the Company's in vitro cell culture business to Sanyo Chemical
Industries, Ltd. of Kyoto, Japan. The $1 million Femcare license fee is being
recognized as income over a three year period.
Operating expenses for the quarter were $853,000, as compared to $784,000
for the same period in 1999. Operating expenses for the year-to-date were
$2,789,000 as compared to $3,117,000 for the same period in 1999. The lower
operating expenses for the nine month period are due primarily to reductions
in personnel and expenditures implemented during the summer of last year, 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. 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 of the incontinence product, and by
the initiation of human clinical trials of the Company's dermal filler product
for use in cosmetic and reconstructive surgery if the Company's recent
application to begin such tests is approved by the FDA later this year.
PPTI's cash balance as of June 30, 2000 was $959,000. 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 through January 2001.
"We are generally pleased with the Company's progress toward
commercializing its tissue augmentation technology. However, our ability to
complete U.S. clinical testing of the incontinence product, and to advance the
dermal filler product into human clinical trials 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.
In addition to our alliance with Femcare, Ltd., we are in discussions with
other potential strategic partners for both of the soft tissue augmentation
products. For our redefined surgical adhesives and sealants program, we are
seeking to identify a partner for the development of a new injectable spinal
disc repair product for the treatment of lower back pain."
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, adhesive fillers 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 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 1999 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 Nine months ended
September 30, September 30,
2000 1999 2000 1999
SUMMARY OF OPERATIONS
Contract revenue $103,333 $2,320 $593,240 $2,320
Interest income 22,543 10,017 68,194 29,575
Product and other
income -- 14,111 3,011 50,627
Total revenues 125,876 26,448 664,445 82,522
Total expenses 852,578 783,923 2,788,760 3,117,419
Net loss (726,702) (757,475) (2,124,315) (3,034,897)
Undeclared and/or
paid dividends on
Preferred Stock $69,220 $69,220 $207,659 $207,659
Net loss applicable
to common
shareholders (795,922) (826,695) (2,331,974) (3,242,556)
Net loss per common
share - basic and
diluted $(0.04) $(0.06) $(0.13) $(0.26)
Shares used in
computing net
loss per share -
basic and
diluted $18,503,655 $13,367,249 $17,404,729 $12,280,147
As of As of
Sep 30, 2000 Dec. 31, 1999
BALANCE SHEET INFORMATION (audited)
Cash, and cash equivalents $959,000 $156,000
Working capital 226,000 (458,000)
Total assets 1,489,000 741,000
Total capital invested 39,653,000 37,299,000
Accumulated deficit $(39,370,000) $(37,245,000)
SOURCE Protein Polymer Technologies, Inc.
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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 & Administration, both of Protein
Polymer Technologies, Inc., 858-558-6064, info@ppti.com
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