Protein Polymer Reports Fourth Quarter and 2000 Year End Financial Results
SAN DIEGO, February 22 -- Protein Polymer Technologies,
Inc. (OTC Bulletin Board: PPTI) reports today its 2000 financial results
for the fourth quarter and the year, both ended December 31, 2000. For the
fourth quarter of 2000, the Company had a net loss applicable to common
shareholders of $444,000, or $0.02 per share, versus a net loss of $1,295,000,
or $0.10 per share, for the comparable period in 1999. For the year ended
December 31, 2000, the Company had a net loss applicable to common shareholders
of $2,776,000, or $0.16 per share, versus a net loss of $4,535,000, or $0.36
per share, for the comparable period in 1999. The difference in year end
results is due primarily to a significant increase in contract and licensing
revenue in 2000, and continued progress in management of expenses. Contract
revenues, interest, and product income totaled $525,000 for the fourth quarter
of 2000, compared to $13,000 for the same period in 1999. For the year,
these revenues totaled $1,189,000, compared to $96,000 for the same period
in 1999. The increase in 2000 contract revenue primarily is due to agreements
with Femcare, Ltd. providing for rights to register and market the Company's
female stress urinary incontinence product in Europe and Australia, the
establishment of a technology license with Genencor International to develop
and market protein polymers for defined industrial markets, and the license
and sale of the Company's in vitro cell culture business to Sanyo Chemical
Industries, Ltd. Operating expenses for the fourth quarter were $899,000,
as compared to $1,239,000 for the same period in 1999. Operating expenses
for the year totaled $3,688,000, compared to $4,353,000 for the same period
in 1999. For both the fourth quarter and the year, the decrease in expenditures
was due primarily to lower than expected clinical testing costs and a general
"across-the-board" Company effort to control costs. However, the cost of
clinical testing is projected to rise in 2001 due to expansion of the female
stress urinary incontinence product, and the first quarter initiation of
clinical testing of the Company's product for dermal contour corrections.
As of December 31, 2000, the Company had $866,000 in cash and cash equivalents
which the Company believes is sufficient to fund its operations through
March 2001. PPTI currently is pursuing a number of alternatives to meet
the continuing capital requirements of its operations, including the potential
exercise of outstanding common stock warrants, the potential establishment
of strategic partnerships and ventures, and potential public or private
equity placements. "Our financial results for both the fourth quarter and
fiscal year reflect the efforts and expenses associated with bringing our
soft tissue augmentation products into human clinical trials," said Dr.
J. Thomas Parmeter, PPTI's President and Chief Executive Officer. "Our product
pipeline is stronger and better defined than ever before. Our urethral bulking
agent is in clinical trials, our dermal augmentation product for use in
dermatology, plastic and reconstructive surgery has received IDE approval
from the FDA and is scheduled to begin clinical trials within a few weeks,
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."
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,
2000 1999 2000 1999
SUMMARY OF OPERATIONS
Contract revenue $514,156 $-- $1,107,396 $2,320
Interest income 10,894 9,768 79,087 39,343
Product and other
income -- 3,677 3,012 54,304
Total revenues 525,050 13,445 1,189,495 95,967
Total expenses 898,812 1,238,779 3,687,572 4,353,498
Net loss $(373,762) $(1,225,334) $(2,498,077) $(4,257,531)
Undeclared and/or
paid accumulated
dividends on
Preferred Stock 69,980 69,980 277,639 277,639
Net loss applicable
to common
shareholders $(443,742) $(1,295,314) $(2,775,716) $(4,535,170)
Loss per share $(0.02) $(0.10) $(0.16) $(0.36)
Weighted average
shares used in
computing loss
per share 18,910,313 13,443,510 17,771,744 12,570,987
As of As of
Dec. 31, 2000 Dec. 31, 1999
BALANCE SHEET INFORMATION (audited)
Cash and cash equivalents $866,000 $156,000
Working capital 143,000 (458,000)
Total assets 1,383,000 741,000
Total capital invested 40,014,000 37,299,000
Accumulated deficit $(39,744,000) $(37,245,000)
