Protein Polymer Technologies Reports Third Quarter Financial Results
SAN DIEGO, Nov. 6 -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI), reports today its financial results for the third quarter
and nine months ended September 30, 1998.
For the quarter, the Company had a net loss applicable
to common shareholders of $1,529,000 ($.14 a share), versus a net loss of
$1,268,000 ($.14 a share) for the comparable period in 1997. For the
nine months ended September 30, 1998, the Company's financial results include,
as is required by the Securities and Exchange Commission, the one-time,
non-cash "imputed dividends" of $3,266,000 from the sale and issuance of
the Company's Series E Preferred Convertible stock, which raised approximately
$5.4 million in April and May. Including the imputed dividends, the
Company had a net loss applicable to common shareholders of $7,662,000 ($.73
a share) for the nine months ended September 30, 1998, versus a net loss
of $3,570,000 ($.39 a share) for the same period in 1997. Excluding
the effect of the imputed dividends, the net loss applicable to common shareholders
would have been $4,396,000 ($.42 per share) for the nine months ended September
30, 1998.
Operating expenses for the quarter were $1,508,000 as
compared to $1,311,000 for the same period in 1997. For the nine months
ended September 30, 1998, operating expenses totaled $4,368,000 compared
to $3,758,000 for the same period in 1997. The increased expenditures
were due to increased regulatory activity and preclinical testing in preparation
for clinical testing of the Company's soft tissue augmentation products.
Contract revenues, interest and product income totaled $48,000 for the quarter,
compared to $161,000 for the same period in 1997. For the nine months
ended September 30, 1998, these revenues totaled $181,000, compared to $549,000
for the same period in 1997. The decreases were due to reduced contract
revenues and interest income. The cash balance was $2,560,000 as of
September 30, 1998, compared to $1,300,000 as of December 31, 1997.
"Our financial results for the third quarter and first
nine months of 1998 reflect our expanding commitment to the development
and registration of our soft tissue augmentation products," said J. Thomas
Parmeter, PPTI's President and Chief Executive Officer. "We expect
to continue to spend at this level or higher, to the extent capital is available,
as we prepare to file Investigational Device Exemptions (IDE) with the U.S.
Food and Drug Administration (FDA) and begin human clinical studies for
both the female stress urinary incontinence indication and for cosmetic
applications."
"Our strategy has been to develop our potential products
in-house until sufficient shareholder value can be obtained from a strategic
partnering relationship. We are currently in discussions with a number
of potential partners regarding these soft tissue augmentation applications
and for tissue adhesive product opportunities."
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, tissue
adhesives and sealants, scaffolds for wound healing and tissue engineering,
and depots for local drug delivery.
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Nine months ended
September 30, September 30,
SUMMARY OF OPERATIONS 1998 1997 1998 1997
Contract revenue $-- $91,510 $50,000 $324,510
Interest income 41,771 41,151 90,336 162,885
Product and
other income 6,725 27,840 41,020 61,744
Total revenues 48,496 160,501 181,356 549,139
Total expenses 1,508,172 1,311,291 4,368,486 3,757,851
Net loss $(1,459,676) $(1,150,790) $(4,187,130) $(3,208,712)
Undeclared, imputed
and/or paid
dividends on
Preferred Stock 69,410 117,657 3,474,913 361,569
Net loss applicable
to common
shareholders $(1,529,086) $(1,268,447) $(7,662,043) $(3,570,281)
Net loss per
common share -
basic and diluted $(0.14) $(0.14) $(0.73) $(0.39)
Shares used in
computing net loss
per share - basic
and diluted 10,575,811 9,332,156 10,492,508 9,173,040
As of As of
Sept. 30, 1998 Dec. 31, 1997
(audited)
BALANCE SHEET INFORMATION
Cash, cash equivalents and
short-term investments $2,560,460 $1,299,838
Working capital 1,973,867 697,020
Total assets 3,491,690 2,347,887
Total capital invested 34,248,515 25,549,644
Accumulated deficit (31,536,890) (24,083,511)
