PROTEIN POLYMER TECHNOLOGIES REPORTS FIRST QUARTER
2004 FINANCIAL RESULTS
Highlights:
• PPTI announced the appointment of Donald S. Kaplan, Ph.D.,
former Senior Vice President, Operations and Technology
at U.S. Surgical, as President and Chief Operating Officer
• PPTI obtained FDA approval to expand pilot clinical studies
for the correction of dermal contour deficiencies
• First quarter total revenues were $191,000; net loss
for the quarter was $851,000
SAN DIEGO,
May 13, 2004 -- Protein Polymer Technologies, Inc. (OTC
Bulletin Board: PPTI), announced today financial results
for the first quarter ended March 31, 2004.
The net loss applicable to common shareholders for the
quarter ended March 31, 2004 was $921,000 ($0.02 per
share), compared to a net loss of $1,744,000 ($0.06 per
share), for the same period in 2003. This net loss and
the per share amounts include accumulated dividends related
to the Company’s preferred stock, and “imputed
dividend” charges pertaining to its recent sale
of Series I Convertible Preferred Stock.
Total revenue was $191,000 for the quarter ended March 31, 2004, compared to
$453,000 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 from 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 $1,042,000, as compared to $822,000 for
the same period in 2003. The increase in operating expense was due principally
to increases in rent and utilities, increased laboratory supplies and services
related to manufacturing process improvements, and increased Board of Director
expenses. 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 March 31, 2004, PPTI had $595,000 in working capital compared to $1,192,000
as of December 31, 2003. PPTI’s cash as of March 31, 2004 was $755,000,
compared to $1,085,000 on December 31, 2003. In combination with anticipated
additional contract 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 until July 2004.
J. Thomas Parmeter, Chairman and Chief Executive Officer of Protein Polymer Technologies,
commented, “Recent events have positioned PPTI to make significant progress
toward commercialization, and increased our ability to capitalize on our large
intellectual property portfolio. In April, we announced the appointment of Donald
S. Kaplan, Ph.D. as President and Chief Operating Officer. For the past year,
Dr. Kaplan has directed our surgical adhesive and sealant product development
where he has successfully advanced the initial sealant product through its research
and formulation development. As President and Chief Operating Officer, he will
lead Protein Polymer through its next stage of development with a primary focus
on the completion of the clinical trials for our tissue augmentation products,
scale up of our manufacturing process, and the continued development and testing
of our surgical sealant and adhesive products. His past experience makes him
uniquely qualified to lead these efforts. Previously, Dr. Kaplan was Senior Vice
President, Operations and Technology at United States Surgical Corporation (now
a subsidiary of Tyco, Inc.), where he was responsible for research and development,
quality control, regulatory affairs and manufacturing.”
Mr. Parmeter added, “We continue to focus on the clinical trials of our
injectable hydrogel for the treatment of dermal contour defects such as scars,
wrinkles and lines, and for the treatment of female stress urinary incontinence.
During the first quarter, we received FDA approval to expand the pilot clinical
trial for the dermal augmentation product for the treatment of dermal contour
deficiencies. 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 up to 20 additional patients. Enrollment in these
expanded trials began last month.”
“
In addition, Spine Wave’s recent completion of its Series B financing provides
assurance that sufficient resources will be available to maintain a focused development
effort for its spine product designed to repair spinal discs damaged by injury
or aging. Spine Wave, which is preparing to begin human clinical testing of the
injectable disc nucleus product developed from our tissue adhesive technology,
holds a license to our technology for spinal applications, and contracts with
PPTI for product development and manufacturing services.”
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Twelve months ended
March 31,
2004 2003
SUMMARY OF OPERATIONS
Contract revenue $ 189,050 $ 450,983
Product and other income 1,958 1,583
Interest income 6 -
Total revenues 191,014 452,566
Total expenses 1,042,401 822,287
Net loss $ ( 851,387) $ ( 369,721)
Undeclared and/or paid accumulated
dividends on Preferred Stock 69,220 1,373,831
Net loss applicable to common
shareholder $ ( 920,607) $(1,743,552)
Net loss per common share -
basic and diluted $ (0.02) $ (0.06)
Sshares used in computing net profit/loss
per share - basic and diluted 37,313,282 29,792,399
As of As of
Mar. 31, 2003 Dec. 31, 2003
BALANCE SHEET INFORMATION
Cash and cash equivalents $ 755,000 $1,085,000
Working capital 595,000 1,192,000
Total assets 1,107,000 1,692,000
Total capital invested 49,058,000 48,809,000
Accumulated deficit $(48,324,000) $(47,473,000)
Contacts:
J. Thomas Parmeter, Ph.D.
President, Chief Executive Officer
jtp@ppti.com
or
Janis Y. Neves
Director of Finance & Administration
jneves@ppti.com
Protein Polymer Technologies
(858) 558-6064 |
|
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.
