Protein Polymer Technologies Reports First Quarter 2001 Financial Results
SAN DIEGO, May 15 -- Protein Polymer Technologies, Inc.
(OTC Bulletin Board: PPTI), reports today its financial results for the
first quarter ended March 31, 2001. For the quarter, the Company had a net
loss applicable to common shareholders of $940,000 ($0.05 a share), versus
a net loss of $548,000 ($0.04 a share) for the comparable period a year
ago. The net loss, and the net loss per share amounts include accumulated
dividends related to the Company's preferred stock.
Contract and licensing revenue, and product and interest
income totaled $92,000 for the first quarter ended March 31, 2001, compared
to $403,000 for the same period last year. The decrease in contract and
licensing revenue primarily represents the one time sale in the first quarter
of last year of the Company's in vitro cell culture business to Sanyo Chemical
Industries, Ltd. of Kyoto, Japan.
Operating expenses for the quarter were $963,000, as
compared to $882,000 for the same period in 2000. The increase in operating
expenses was due to increased clinical start up costs and regulatory expenses
stemming from the recent approval of the Company's Investigational Device
Exemption by the U.S. Food and Drug Administration (FDA). The IDE approval
allows the Company to initiate human clinical trials of its tissue augmentation
agent for use in cosmetic surgery and dermatology to correct dermal contour
deficiencies (facial lines, wrinkles, and scars) caused by aging or disease.
Expenses are expected to continue to rise in subsequent quarters due to
the increased expenditures for clinical testing and patient follow-up for
both the dermal product, and for the continuing clinical trials of the Company's
urethral bulking agent for the treatment of female stress urinary incontinence.
PPTI's cash balance as of March 31, 2001 was $2,022,000.
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 2002.
"We are generally pleased with the Company's progress
toward commercializing its tissue augmentation technology, but our ability
to complete U.S. clinical testing of both the incontinence and the dermal
product is dependent on identifying additional sources of working capital,"
said J. Thomas Parmeter, PPTI's President and Chief Executive Officer. "Over
the course of the year, the Company may seek to raise additional funds for
continuing operations through private or public offerings, and through additional
collaborative agreements. In addition to our recent alliances with Genencor
International to develop industrial applications of the technology, and
with Spinal Wave, Inc. for the development of a new injectable Spinal disc
repair product for the treatment of lower back pain, we are in discussions
with other potential strategic partners for commercializing the soft tissue
augmentation products."
Protein Polymer Technologies, Inc., is a San Diego-based
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 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
March 31,
2001 2000
SUMMARY OF OPERATIONS
Contract and licensing revenue $83,333 $386,574
Product and other income 38 2,866
Interest income 8,230 13,809
Total revenues 91,601 403,249
Total expenses 962,715 881,719
Net loss (871,114) (478,470)
Undeclared and/or paid
dividends on Preferred Stock 68,459 69,220
Net loss applicable to common
shareholders $(939,573) $(547,690)
Net loss per common share -
basic and diluted $(0.05) $(0.04)
Shares used in computing net profit/loss
per share - basic and diluted 18,914,202 15,320,744
As of As of
Mar. 31, 2001 Dec. 31, 2000
BALANCE SHEET INFORMATION
Cash and cash equivalents $2,022,000 $866,000
Working capital 471,000 143,000
Total assets 2,506,000 1,383,000
Total capital invested 41,265,000 40,014,000
Accumulated deficit (40,615,000) (39,744,000)
