Protein Polymer Reports 1999 Year End Financial Results And $3.5 Million
Raised Subsequent to Year End
SAN DIEGO, March 7 -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI) reports today its 1999 financial results for the fourth quarter
and the year, both ended December 31, 1999. In addition, the Company announced
it recently had raised $2.1 million through the conversion of common stock
warrants held by a small group of accredited and institutional investors.
In combination with approximately $1,400,000 in cash and receivables generated
from licensing and R&D agreements, PPTI has raised a total of approximately
$3.5 million since the beginning of 2000. The Company intends to use the
proceeds to continue and expand human clinical testing of the Company's
lead product, an injectable treatment for female stress urinary incontinence.
1999 Financial Results. For the fourth quarter of 1999,
the Company had a net loss applicable to common shareholders of $1,295,000,
or $.10 per share, versus a net loss of $1,520,000, or $0.14 per share,
for the comparable period in 1998. For the year ended December 31, 1999,
the Company had a net loss applicable to common shareholders of $4,535,000,
or $0.36 per share, versus a net loss of $9,183,000, or $0.88 per share,
for the comparable period in 1998. The difference in year end results is
due primarily to a non-cash, ``imputed dividends'' expense in 1998 that
resulted from the sale and issuance of the Company's Series E Convertible
Preferred Stock. Excluding the effect of the imputed dividends, the net
loss applicable to common shareholders for 1998 would have been $5,638,000
($.54 per share).
Contract revenues, interest, and product income totaled
$13,445 for the fourth quarter of 1999, compared to $74,000 for the same
period in 1998. For the year, these revenues totaled $96,000, compared to
$256,000 for the same period in 1998. The decrease in contract revenue reflects
the Company's increased focus on moving the incontinence product into clinical
testing, prior to seeking a strategic partner to help defray the development
and clinical testing costs. Operating expenses for the fourth quarter were
$1,239,000, as compared to $1,526,000 for the same period in 1998. Operating
expenses for the year totaled $4,353,000, compared to $5,894,000 for the
same period in 1998. For both the fourth quarter and the year, the decreased
expenditures were due primarily to a corporate downsizing in mid year, and
completion of preclinical testing and reduced regulatory expense in preparation
for clinical trials of the Company's soft tissue augmentation products that
began in December 1999.
As of December 31, 1999, the Company had $156,000 in cash
and cash equivalents which, in combination with the cash and receivables
raised in January and February 2000, the Company believes is sufficient
to fund its operations through December 2000. In addition, PPTI is pursuing
a number of alternatives to meet the continuing capital requirements of
its operations.
"Our financial results for both the fourth quarter and
fiscal year reflect the necessary costs associated with bringing our soft
tissue augmentation products into human clinical trials," said Dr. J. Thomas
Parmeter, PPTI's President and Chief Executive Officer. "We expect to continue
to spend at this level and higher, to the extent capital is available, as
we continue clinical trials of our incontinence product this year."
"Our product pipeline is stronger and better defined than
ever before," Dr. Parmeter added. "Our urethral bulking agents are in clinical
trials, our dermal and reconstructive product is being prepared for an IDE
submission to the FDA for approval, and we've directed the focus of our
surgical adhesive technology toward the treatment of lower back pain through
Spinal disc repair. We are currently in various stages of discussion with
potential strategic partners for both our soft tissue augmentation products
and our surgical adhesive product opportunities."
Subsequent Financing Events. The Company received in January
and February 2000 approximately $1,400,000 in cash and receivables primarily
from the previously announced licensing and R&D agreements with Femcare,
Ltd. for the European and Australian marketing rights to the stress urinary
incontinence bulking product, and from Sanyo Chemical Industries, Ltd. for
the commercial rights to PPTI's in vitro cell culture business and existing
inventory. Also in February 2000, the Company received approximately $2.1
million from the exercise of common stock warrants originally granted as
part of the sale of Series G Convertible Preferred Stock and warrants. The
Preferred Stock, warrants and underlying common stock have not been registered
under the Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable exemption
from registration requirements.
Protein Polymer Technologies, Inc., a San Diego-based
biotechnology company, has developed a protein-based technology platform
that allows creation of new biomaterials that can target multiple applications
in biomedical markets. The different classes of biocompatible polymers developed
by PPTI have been genetically engineered to enable cell growth, promote
the regeneration of tissue, bond to synthetic surfaces, and resorb into
tissue at controlled rates. Targeted applications include tissue adhesives
and sealants, tissue augmentation, wound healing, and drug delivery vehicles.
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
1999 1998 1999 1998
SUMMARY OF OPERATIONS
Contract revenue $ -- $ -- $2,320 $50,000
Interest income 9,768 44,641 39,343 134,978
Product and other
income 3,677 29,827 54,304 70,846
Total revenues 13,445 74,468 95,967 255,824
Total expenses 1,238,779 1,525,541 4,353,498 5,894,027
Net loss $(1,225,334) $(1,451,073) $(4,257,531) $(5,638,203)
Undeclared and/or
paid accumulated
dividends on
Preferred Stock 69,980 69,410 277,639 3,544,323
Net loss applicable
to common
shareholders $(1,295,314) $(1,520,483) $(4,535,170) $(9,182,526)
Loss per share $(0.10) $(0.14) $(0.36) $(0.88)
Weighted average
shares used in
computing loss
per share 13,443,510 10,690,097 12,570,987 10,484,277
As of As of
Dec. 31, 1999 Dec. 31, 1998
BALANCE SHEET INFORMATION (audited)
Cash and cash equivalents $156,000 $1,383,000
Working capital (458,000) 600,000
Total assets 741,000 2,225,000
Total capital invested 37,299,000 34,258,000
Accumulated deficit $(37,245,000) $(32,988,000)
