Investor's Overview
The History of PPTI
Incorporated in 1988, Protein Polymer Technologies, Inc.
(PPTI), a Delaware corporation with corporate offices and
laboratories located in San Diego, California, is a development-stage
biotechnology company engaged in the research, development,
and production of bio-active devices to improve medical
and surgical outcomes. Since 1992, PPTI has focused primarily
on developing technology and products to be used in the
repair, augmentation, and regeneration of tissue –soft
tissue augmentation products; surgical adhesives and sealants;
matrices for wound healing and tissue engineering; and drug
delivery formulations.
Platform Technology
PPTI has developed a platform technology which positions
it to be a leader in the emerging field of bio-active
devices. Such bio-active devices combine mechanical
properties typically obtained from synthetic polymeric
materials with the capability of proteins to influence
cellular functions. PPTI’s technology platform
consists of proprietary biomaterials, formulated from
unique rDNA polymers composed of repetitive protein
sequences. This integration of biological and physical
product components provides the opportunity for optimized
clinical performance and patient outcomes. Through
genetic engineering, PPTI’s scientists are able
to tailor the physical structure and biological characteristics
of protein polymers to achieve required biomaterial
properties.
Protein polymers are synthetic proteins created "from
scratch" through chemical DNA (gene) synthesis,
and produced in quantity by traditional large-scale
microbial fermentation methods. As a result, protein
polymers contain no human or animal components that
could potentially transmit or cause disease. Due to
their synthetic design, protein polymers are capable
of combining the biological functionality of natural
proteins with the chemical functionality and exceptional
physical properties of synthetic polymers. The company’s
overall goal is to develop materials that beneficially
interact with human cells, enabling cell growth and
the regeneration of tissues with improved outcomes
as compared to current products and practices.
Products
PPTI PPTI is currently developing and testing general surgical adhesive and
sealant product applications. PPTI’s Surgical Sealants (STS) are a two-component
liquid formulation that spreads easily and sets quickly and effectively sealing
surgical leaks in most tissue following wound closure.
It also is anticipated that the adhesive technology may have application as
preformed surgical implants, relying on the exceptional biocompatibility and
mechanical properties of these materials. All of the protein polymer components
of the products currently in development are based on similar manufacturing
requirements, a key point of economic consolidation.
Additionally, PPTI is a technology partner with Spine
Wave, Inc. Spine Wave
uses PPTI’s patented tissue adhesive technology to create NuCore™.
PPTI manufactured the NuCore™ material for Spine Wave’s clinical
trials. Spine Wave’s NuCore™ Injectable Nucleus device, based
on PPTI’s patented tissue adhesive technology, is an injectable protein
polymer formulation for repair of spinal discs damaged as a result of injury
or aging. Injected in a liquid form, the NuCore™ material rapidly cures
to a gel that has physical properties which mimic those of the natural nucleus.
The companies are engaged in a program to develop and commercialize PPTI’s
technology for certain spinal and orthopedic applications.
Key Relationships
The company has established a comprehensive license and development agreement
with Genencor International for the
use of its biomaterials and technology to develop, manufacture and commercialize
products for industrial markets.
Genencor International is one of the world's largest manufacturers of industrial
enzymes and other biologically derived products. Through this arrangement,
the company will receive milestone payments and royalties on the eventual
sale of products.
Intellectual Property
PPTI is a pioneer in protein polymer design and synthesis.
The company currently has 25 issued U.S. patents and
4 U.S. patents pending. Each of its products under
development is protected by multiple patents claiming
different aspects of the underlying inventions. The
intellectual property falls into four general areas:
• Protein and DNA composition of matter based
broadly on repetitive amino acid sequences
• Protein polymers that combine physical properties with functional activity
• Methods for the construction of DNA compositions (synthetic genes)
• Methods of manufacture and use (e.g., for bonding tissue together, for
augmenting tissue)
By continuing to take advantage of this multi-layered
approach to the protection of its technology, PPTI
believes that it can maintain a proprietary portfolio
of products well into the future. The Company intends
to develop the technology both for new applications
of existing protein polymers and for creating entirely
new protein polymers in those areas recognized, now
and in the future, as possible and attractive large
markets.
Strategy
PPTI’s business strategy consists of three areas of focused effort.
The first goal is to create near-term value by achieving self-sustaining cash
flow. The Company plans to accomplish this goal by: 1) establishing partnerships
for marketing and distribution of products; 2) continuing to initiate additional
materials transfer agreements with potential partners, and 3) expanding its
business focus to additional product applications in tissue adhesives and
sealants. Second, PPTI intends to leverage its extensive core technology to
identify/create new business opportunities. Third, the Company is expanding
investor relations activities, focused particularly on increasing shareholder
value and liquidity.
