Protein PolymerTechnologies Reports Third Quarter 2001 Financial Results
SAN DIEGO, November 14, 2001 -- Protein Polymer Technologies,
Inc.(OTC Bulletin Board: PPTI), reports today its financial results for
the third quarter and the nine months ended September 30, 2001. For the
quarter, the Company had a net loss applicable to common shareholders of
$752,000 ($0.03 a share), versus a net loss of $796,000 ($0.04 a share)
for the comparable period a year ago. Year-to-date, PPTI had a net loss
applicable to common shareholders of $2,562,000 ($0.12 a share), versus
a net loss of $2,332,000 ($0.13 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 CompanyÕs preferred stock. Contract
and licensing revenue, and product and interest income totaled $296,000
for the third quarter and $589,000 for the nine month period ended September
30, 2001, compared to $126,000 and $664,000 respectively for the same periods
last year. The 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 CompanyÕs product for the treatment of female stress
urinary incontinence in Europe and Australia, and from research and development
payments from the CompanyÕs affiliate, SpinalWave, Inc., formed with Windamere
Venture Partners in April 2001 to develop and commercialize a Spinal disc
repair product for the treatment of lower back pain. The $1 million Femcare
license fee is being recognized as income over a three-year period. Operating
expenses for the quarter were $978,000, as compared to $853,000 for the
same period in 2000. Operating expenses for the year-to-date were $2,943,000
as compared to $2,789,000 for the same period in 2000. In general, operating
expenses for the past two years have remained low due primarily to reductions
in personnel and expenditures implemented during 1999. However, to the extent
that resources are available, expenses are expected to rise in subsequent
quarters due to the increased expenditures for expanded human clinical testing
and patient follow-up of the CompanyÕs injectable urethral bulking agent
for the treatment of female stress urinary incontinence, and of the CompanyÕs
injectable hydrogel for the treatment of dermal contour defects (scars,
wrinkles, and lines). PPTIÕs cash balance as of September 30, 2001 was $684,000,
as compared to $866,000 as of December 31, 2000. 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 CompanyÕs anticipated capital requirements until January 2002. If additional
capital is not obtained in the near future, the Company will be required
to reduce the use of cash through layoffs and other cost reduction steps.
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
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 managementÕs 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 CompanyÕs activities include raising adequate capital
to continue operations, scientific and clinical 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 CompanyÕs 2000 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
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 2000
Annual Report 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,
2001 2000 2001 2000
SUMMARY OF OPERATIONS
Contract revenue $283,333 $103,333 $550,000 $593,240
Interest income 12,175 22,543 38,857 68,194
Product and other
income -- -- 38 3,011
Total revenues 295,508 125,876 588,895 664,445
Total expenses 977,706 852,578 2,942,872 2,788,760
Net loss (682,198) (726,702) (2,353,977) (2,124,315)
Undeclared and/or
paid dividends on
Preferred Stock $69,980 $69,220 $207,659 $207,659
Net loss applicable
to common
shareholders (752,178) (795,922) (2,561,636) (2,331,974)
Net loss per common
share - basic and
diluted $(0.03) $(0.04) $(0.12) $(0.13)
Shares used in
computing net
loss per share -
basic and
diluted $21,735,420 $18,503,655 $20,749,940 $17,404,729
As of As of
Sep 30, 2001 Dec. 31, 2000
BALANCE SHEET INFORMATION
Cash, and cash equivalents $648,000 $866,000
Working capital 18,000 143,000
Total assets 1,249,000 1,383,000
Total capital invested 42,488,000 40,014,000
Accumulated deficit $(42,098,000) $(39,744,000)
