PROTEIN POLYMER TECHNOLOGIES REPORTS
FOURTH QUARTER AND YEAR END 2003 FINANCIAL RESULTS
Highlights:
•Supply and Services Agreement between the PPTI and Spine
Wave extended; PPTI estimates approximately $1.2 million
in R&D payments
•PPTI obtained FDA approval to expand pilot clinical
studies for the correction of dermal contour deficiencies
•Fourth quarter total revenues were $312,000; net loss
for the quarter was $752,000
SAN DIEGO,
March 11, 2004 -- Protein Polymer Technologies, Inc.
(OTC Bulletin Board: PPTI) reported today financial results
for the fourth quarter and the year ended December 31,
2003.
For the quarter, the Company had a net loss applicable
to common shareholders of $752,000 ($0.02 a share), versus
a net loss of $168,000 ($0.01 a share) for the comparable
period a year ago. For the year, PPTI had a net loss
applicable to common shareholders of $3,844,000 ($0.11
a share), versus a net loss of $1,294,000 ($0.05 a share)
for the comparable period a year ago. The net loss and
the net loss per share amounts included accumulated and
distributed dividends related to the Company’s
preferred stock. The net loss in 2003 also included a
non-cash “imputed dividend” expense of $1,373,000
to account for the difference between the fair market
value of the common stock and the conversion price of
the preferred stock into common stock in connection with
the sale of Series I Convertible Preferred Stock in March
and May 2003.
Revenues totaled $312,000 for the fourth quarter and $1,617,000 for the twelve
month period ended December 31, 2003, compared to $866,000 and $3,019,000, respectively,
for the same periods last year. The decrease in contract and licensing revenue
primarily represents a decrease in research and development payments from Spine
Wave, Inc. due to completion of preclinical studies in support of Spine Wave’s
Investigational Device Exemption (IDE) filing with the U.S. Food and Drug Administration
requesting permission to begin human clinical testing. Spine Wave was formed
in April 2001 to develop and commercialize a spinal disc repair product for the
treatment of lower back pain based on technology PPTI licensed to Spine Wave.
Operating expenses for the quarter were $994,000, as compared to $984,000 for
the same period in 2002. Operating expenses for the year were $3,811,000, as
compared to $4,035,000 for the same period in 2002. In general, operating expenses
for the past two years have remained low due primarily to reductions in personnel
and expenditures implemented during the past three years. To the extent that
resources become available, expenses are expected to rise in subsequent quarters
due to increased expenditures for expanded human clinical testing and patient
follow-up of PPTI’s injectable hydrogel for the treatment of dermal contour
defects, injectable urethral bulking agent for the treatment of female stress
urinary incontinence, and the preclinical development of its surgical sealant
designed to eliminate leaks following lung, bowel and cardiovascular surgery.
However, there can be no assurance that additional resources will become available.
PPTI’s cash balance as of December 31, 2003 was $1,085,000, as compared
to $734,000 as of December 31, 2002. As of December 31, 2003, the Company had
working capital of $1,192,000 as compared to $189,000 as of December 31, 2002.
In combination with anticipated additional contract and license payments, and
revenue projected for the delivery of clinical testing materials, the Company’s
cash is expected to meet the Company’s anticipated capital requirements
through May 2004. If additional capital is not obtained in the near future, the
Company will be required to reduce the use of cash through layoffs and other
cost reduction steps.
As previously announced, the research and development contract between PPTI and
Spine Wave was extended during the fourth quarter. PPTI estimates it will receive
from Spine Wave approximately $1.2 million in R&D payments under the amended
agreement. PPTI is continuing, on Spine Wave’s behalf, product characterization
studies and preparations for the supply of product to be used in human clinical
trials following required regulatory approvals.
PPTI recently received FDA approval to expand the pilot clinical trial for its
dermal augmentation product for the treatment of dermal contour deficiencies
(wrinkles, lines, and scars). The additional human data will be used in support
of an application to conduct a projected pivotal clinical study. Injected as
a liquid into the dermal tissue, the protein polymer solution rapidly transitions
into a durable, flexible hydrogel that is then shaped by the physician for the
desired appearance. The expansion will include 20 additional patients, with enrollment
anticipated over the next 90 days.
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
2003 2002 2003 2002
SUMMARY OF OPERATIONS
Contract revenue $307,930 $633,4876 $1,597,415 $2,760,571
Interest income 3,679 2,115 19,903 6,810
Product and other
income -- 250,000 -- 251,500
Total revenues 311,619 885,602 1,617,318 3,018,881
Total expenses 994,057 984,018 3,810,557 4,035,038
Net loss $(682,438) $(98,416) $(2,193,239) $(1,016,157)
Undeclared and/or
paid accumulated
dividends on
Preferred Stock 69,980 69,980 1,650,886 277,639
Net loss applicable
to common
shareholders $(752,418) $(168,396) $(3,844,125) $(1,293,796)
Loss per share $(0.02) $(0.01) $(0.11) $(0.05)
Weighted average
shares used in
computing loss
per share 36,796,094 29,724,110 34,362,427 27,659,838
As of As of
Dec. 31, 2003 Dec. 31, 2002
BALANCE SHEET INFORMATION (audited)
Cash and cash equivalents $1,085,000 $734,000
Working capital 1,192,000 189,000
Total assets 1,692,000 875,000
Total capital invested 48,809,000 44,182,000
Accumulated deficit $(47,473,000) $(43,907,000)
Contacts:
J. Thomas Parmeter, Ph.D.
President, Chief Executive Officer
Janis Y. Neves
Director of Finance & Administration
Protein Polymer Technologies
(858) 558-6064 |
Stephanie Carrington
Vice President
The Ruth Group
(646) 536-7032
|
About
Protein Polymer Technologies
Protein Polymer Technologies,
Inc., is a San Diego-based company focused on developing
bioactive devices to improve
medical and surgical outcomes. From its inception in
1988, PPTI has been a pioneer in protein design and
synthesis, creating an extensive portfolio of proprietary
biomaterials
for use in the development of bioactive devices. 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.
Safe Harbor
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
2002 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.
