Protein Polymer Technologies Reports Third Quarter 1996 Financial Results
SAN DIEGO, Oct. 25, 1996 -- Protein Polymer Technologies,
Inc.(Nasdaq: PPTI), reported today a net loss applicable to common shareholders
of $719,000 ($.10 a share) for the third quarter ended September 30, 1996,
as compared to a net loss of $152,000 ($.03 a share) for the comparable
period a year ago. For the nine months ended September 30, 1996 and
1995, the net losses applicable to common shareholders were $2,410,000 ($.37
a share) and $1,721,000 ($.30 a share) respectively. The net loss
and loss per share figures include accumulated and/or paid dividends related
to the Company's preferred stock.
Sales, contract revenues and interest income totaled
$357,000 for the quarter, compared to $841,000 for the same period last
year. The current quarter includes $300,000 in research and development
reimbursements from Ethicon, Inc. (Ethicon), a subsidiary of the Johnson
& Johnson Company. The comparable period last year included an
$800,000 payment upon the signing of a licensing and development agreement
with Ethicon. For the nine months ended September 30, 1996 total revenues
were $521,000, compared to $932,000 in the prior year.
Operating expenses for the quarter were $953,000, as
compared to $732,000 for the same period in 1995, a 30% increase.
For the nine months ended September 30, 1996 and 1995, operating expenses
were $2,563,000 and $2,392,000 for 1996 and 1995 respectively, a 7% increase.
These increases were attributed to expanded research and development activities
as required for its ongoing surgical adhesives and sealants efforts with
Ethicon, and increased patent and investor relations efforts over the past
year.
"We are dedicated to strengthening our relationship
with our corporate partner Ethicon in developing a new generation of surgical
adhesives and sealants," said J. Thomas Parmeter, PPTI's President
and Chief Executive Officer. "We are also actively pursuing partnerships
to accelerate the development of products in the area of protein-based coatings
for contact lenses and cardiovascular applications. In addition, our
cash position has improved during the quarter due to the exercise of privately
held warrants."
Protein Polymer Technologies, Inc. is a development stage
biomaterials company focused on surgical repair and drug delivery.
PPTI's genetically engineered protein-based biomaterials are specifically
designed to control or direct the activities of mammalian cells. Product
candidates being developed include tissue adhesives and sealants, drug delivery
systems, wound healing materials and surgical adhesion barriers. PPTI
also markets a line of activated cell culture products under the trade names
of ProNectin(R) and SmartPlastic(R).
Condensed Financial Statements
(unaudited)
Three months ended Nine months ended
September 30, September 30,
SUMMARY OF OPERATIONS 1996 1995 1996 1995
Product sales $21,140 $35,342 $45,664 $94,530
Contract revenue 310,000 800,000 410,000 810,000
Interest income 26,206 5,805 65,263 27,961
Total revenues 357,346 841,147 520,927 932,491
Cost of goods sold 7,994 24,158 19,878 53,762
Research and development 544,146 375,179 1,452,415 1,295,932
General and administrative 394,482 326,373 1,061,637 1,013,545
Royalties 6,250 6,250 28,750 28,750
Total expenses 952,872 731,960 2,562,680 2,391,989
Net loss $(595,526) $109,187 $(2,041,753)$(1,459,498)
Undeclared and/or paid accumulated
dividends on Preferred Stock123,639 261,166 368,228 261,166
Net loss applicable to
common shareholders $(719,165)$(151,979) $(2,409,981)$(1,720,664)
Loss per share $(0.10) $(0.03) $(0.37) $(0.30)
Weighted average shares used
in computing loss
per share 7,008,171 5,830,990 6,445,343 5,830,947
As of As of
BALANCE SHEET INFORMATION Sept. 30, 1996 Dec. 31, 1995
Cash, cash equivalents and (audited)
short-term investments $ 2,166,945 $ 2,011,296
Working capital 1,708,308 1,803,254
Total assets 2,624,174 2,439,159
Total capital invested 20,431,361 18,471,111
Accumulated deficit (18,384,559) (16,342,805)
