Protein Polymer Technologies Reports Third Quarter 2000 Financial Results
SAN DIEGO, November
8 -- Protein Polymer Technologies, Inc. (OTC Bulletin Board: PPTI), reports
today its financial results for the third quarter and the nine months ended
September 30, 2000. For the quarter, the Company had a net loss applicable
to common shareholders of $796,000 ($0.04 a share), versus a net loss of
$827,000 ($0.06 a share) for the comparable period a year ago. Year-to-date,
PPTI had a net loss applicable to common shareholders of $2,332,000 ($0.13
a share), versus a net loss of $3,243,000 ($0.26 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 $126,000 for the third quarter and $664,000 for the nine
month period ended September 30, 2000, compared to $26,000 and $83,000 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 $853,000, as
compared to $784,000 for the same period in 1999. Operating expenses for
the year-to-date were $2,789,000 as compared to $3,117,000 for the same
period in 1999. The lower operating expenses for the nine month period 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 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 recent application to begin such tests is approved
by the FDA later this year.
PPTI's cash balance as of June 30, 2000 was $959,000.
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
through 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.
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
1999 Annual Report on Form
10-KSB, and 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.
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
SUMMARY OF OPERATIONS
Contract revenue $103,333 $2,320 $593,240 $2,320
Interest income 22,543 10,017 68,194 29,575
Product and other
income -- 14,111 3,011 50,627
Total revenues 125,876 26,448 664,445 82,522
Total expenses 852,578 783,923 2,788,760 3,117,419
Net loss (726,702) (757,475) (2,124,315) (3,034,897)
Undeclared and/or
paid dividends on
Preferred Stock $69,220 $69,220 $207,659 $207,659
Net loss applicable
to common
shareholders (795,922) (826,695) (2,331,974) (3,242,556)
Net loss per common
share - basic and
diluted $(0.04) $(0.06) $(0.13) $(0.26)
Shares used in
computing net
loss per share -
basic and
diluted $18,503,655 $13,367,249 $17,404,729 $12,280,147
As of As of
Sep 30, 2000 Dec. 31, 1999
BALANCE SHEET INFORMATION (audited)
Cash, and cash equivalents $959,000 $156,000
Working capital 226,000 (458,000)
Total assets 1,489,000 741,000
Total capital invested 39,653,000 37,299,000
Accumulated deficit $(39,370,000) $(37,245,000)
