SAN DIEGO, Nov. 10 /PRNewswire/ -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI), reports today its financial results for the third quarter
ended September 30, 1999. For the quarter, the Company had a net loss
applicable to common shareholders of $827,000 ($0.06 a share), versus a net
loss of $1,529,000 ($0.14 a share) for the comparable period a year ago. For
the nine month period ended September 30, 1999, the net loss applicable to
common shareholders was $3,243,000 ($0.26 a share) as compared to
$7,662,000 ($0.73 a share) for the same period in 1998. The net loss and loss
per share amounts include accumulated and distributed dividends related to the
Company's preferred stock. The reduction in losses for both the three and the
nine month periods was due primarily to cost cutting measures implemented
during the quarter, and to the completion of preclinical studies and initial
regulatory filings in preparation for beginning human clinical trials of the
Company's injectable hydrogel implant for the treatment of female stress
urinary incontinence, scheduled to start next month.
Operating expenses for the quarter were $784,000 and $3,117,000 for the
nine month period, as compared to $1,508,000 and $4,368,000 for the same
periods in 1998. The decrease was due primarily to planned cost cutting
measures taken in the third quarter, and to reduced research and development
expenses following the completion of preclinical testing and the filings
associated with the Company's Investigational Device Exemption (IDE) obtained
from the U.S. Food and Drug Administration (FDA) in May 1999. The approved
IDE requested permission to initiate human clinical trials of PPTI's
injectable urethral bulking agent for the treatment of female stress urinary
incontinence.
PPTI's cash balance as of September 30, 1999 was $998,000. At planned
spending levels this amount is expected to meet the Company's anticipated
capital requirements until February, 2000.
The Company plans to raise additional funds for continuing operations
through private or public offerings and collaborative agreements. In
addition, the Company is continuing to pursue other strategic alternatives.
However, there can be no assurance that any of these fundings will be
consummated in the necessary time frames needed for continuing operations or
on terms favorable to the Company. If adequate funds are not available, the
Company will be required to significantly curtail its operating plans and may
have to sell or license out significant portions of the Company's technology
or potential products.
"Our financial results for the quarter reflect a reduction in outside
expenditures due to planned reductions in operating expenses and the
completion of preclinical testing; additional development expenditures will be
required for impending clinical testing and product registration with the
FDA," said J. Thomas Parmeter, PPTI's President and Chief Executive Officer.
"While our ability to proceed is entirely dependent on identifying additional
sources of working capital, there is continued interest in our programs by
potential partners, and we are currently pursuing a number of opportunities.
We are in discussions with potential strategic partners for each of the soft
tissue augmentation products, and in our redefined surgical adhesives and
sealants program, we are seeking to create a partnering relationship for the
development of a new injectable spinal disc repair product for the treatment
of lower back pain, although there is no assurance that these efforts will
ultimately lead to a strategic alliance."
Protein Polymer Technologies, Inc., is a San Diego-based 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 1998 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,
1999 1998 1999 1998
SUMMARY OF OPERATIONS
Contract revenue $2,320 $-- $2,320 $50,000
Interest income 10,017 41,772 29,575 90,337
Product and
other income 14,111 6,725 50,627 41,019
Total revenues 26,448 48,497 82,522 181,356
Total expenses 783,923 1,508,173 3,117,419 4,368,486
Net loss $(757,475) $(1,459,676) $(3,034,897) $(4,187,130)
Undeclared
and/or paid
dividends on
Preferred
Stock 69,220 69,410 207,659 3,474,913
Net loss
applicable
to common
shareholders $(826,696) $(1,529,086) $(3,242,556) $(7,662,043)
Net loss per
common share -
basic and
diluted $(0.06) $(0.14) $(0.26) $(0.73)
Shares used in
computing net
loss per share
- basic and
diluted 13,367,249 10,575,811 12,280,147 10,492,508
As of As of
Sep. 30, 1999 Dec. 31, 1998
BALANCE SHEET INFORMATION (audited)
Cash, and cash
equivalents $998,000 $1,383,000
Working capital 729,000 600,000
Total assets 1,634,000 2,225,000
Total capital invested 37,293,000 34,258,000
Accumulated deficit (36,023,000) (32,988,000)
SOURCE Protein Polymer Technologies, Inc.
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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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