Protein Polymer Technologies Reports Second Quarter 2000 Financial Results
SAN DIEGO, August 7 -- Protein Polymer Technologies,
Inc. (OTC Bulletin Board: PPTI), reports today its financial results for
the second quarter and the six months ended June 30, 2000. For the quarter,
the Company had a net loss applicable to common shareholders of $988,000
($0.05 a share), versus a net loss of $1,241,000 ($0.10 a share) for the
comparable period a year ago. Year-to-date, PPTI had a net loss applicable
to common shareholders of $1,535,000 ($0.09 a share), versus a net loss
of $2,415,000 ($0.21 a share) for the comparable period a year ago. The
net loss, and the net loss per share amounts include accumulated and distributed
dividends related to the Company's preferred stock.
Contract and licensing revenue, and product and interest
income totaled $135,000 for the second quarter and $539,000 for the six
month period ended June 30, 2000, compared to $20,000 and $56,000 respectively
for the same periods last year. The increase in contract and licensing revenue
primarily represents the amortized portion of an up front license payment
of $1 million that is associated with the formation of a partnership with
Femcare Ltd., of Nottingham England to commercialize the Company's product
for the treatment of female stress urinary incontinence in Europe and Australia,
and from the sale of the Company's in vitro cell culture business to Sanyo
Chemical Industries, Ltd. of Kyoto, Japan. The $1 million Femcare license
fee is being recognized as income over a three year period.
Operating expenses for the quarter were $1,054,000, as
compared to $1,192,000 for the same period in 1999. Operating expenses for
the year-to-date were $1,936,000 as compared to $2,333,000 for the same
period in 1999. The lower operating expenses are due primarily to reductions
in personnel and expenditures implemented during the summer of last year,
and to a lesser degree to reduced research and development expenses following
the completion of preclinical testing and approval by the U.S. Food and
Drug Administration (FDA) to begin human clinical trials of the Company's
injectable urethral bulking agent for the treatment of female stress urinary
incontinence. However, to the extent that resources are available, expenses
are expected to rise in subsequent quarters due to the increased expenditures
for clinical testing and patient follow-up of the incontinence product,
and potentially by the initiation of human clinical trials of the Company's
dermal filler product for use in cosmetic and reconstructive surgery if
the Company's application to begin such tests is approved by the FDA later
this year.
PPTI's cash balance as of June 30, 2000 was $1,759,000.
In combination with anticipated additional contract and license payments,
and revenue projected for the delivery of clinical testing materials, this
amount is expected to meet the Company's anticipated capital requirements
until January 2001.
"We are generally pleased with the Company's progress
toward commercializing its tissue augmentation technology. However, our
ability to complete U.S. clinical testing of the incontinence product, and
to advance the dermal filler product into human clinical trials is dependent
on identifying additional sources of working capital," said J. Thomas Parmeter,
PPTI's President and Chief Executive Officer. "Over the remainder of the
year, the Company will seek to raise additional funds for continuing operations
through private or public offerings, and through additional collaborative
agreements. In addition to our alliance with Femcare, Ltd., we are in discussions
with other potential strategic partners for both of the soft tissue augmentation
products. For our redefined surgical adhesives and sealants program, we
are seeking to identify a partner for the development of a new injectable
Spinal disc repair product for the treatment of lower back pain."
Protein Polymer Technologies, Inc., is a biotechnology
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.
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
SUMMARY OF OPERATIONS
Contract revenue $103,333 $-- $489,907 $--
Interest income 31,842 6,556 45,651 19,559
Product and other
income 145 13,868 3,012 36,516
Total revenues 135,320 20,424 538,570 56,075
Total expenses 1,054,462 1,191,746 1,936,182 2,333,496
Net loss $(919,142) $(1,171,322) $(1,397,612) $(2,277,421)
Undeclared and/or
paid dividends on
Preferred Stock 69,220 69,220 137,678 137,678
Net loss
applicable to
common
shareholders $(988,362) $(1,240,542) $(1,535,290) $(2,415,099)
Net loss per common
share -- basic and
diluted $(0.05) $(0.10) $(0.09) $(0.21)
Shares used in
computing net
loss per share
-- basic and
diluted 18,377,713 12,505,778 16,849,228 11,727,586
As of As of
June 30, 2000 Dec. 31, 1999
BALANCE SHEET INFORMATION
Cash and cash equivalents $1,759,000 $156,000
Working capital 984,000 (458,000)
Total assets 2,291,000 741,000
Total capital invested 39,609,000 37,299,000
Accumulated deficit $(38,643,000) $(37,245,000)
