Protein Polymer Technologies Reports Fourth Quarter and Year End 1998
Financial Results
SAN DIEGO, Mar. 9 -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI), reports its financial results for the fourth quarter and
year ended December 31, 1998.
For the fourth quarter of 1998, the Company had a net
loss applicable to common shareholders of $1,520,000, or $.14 per share,
versus a net loss of $1,316,000, or $.13 per share, for the comparable period
in 1997. For the year ended December 31, 1998, the Company had a net
loss applicable to common shareholders of $9,183,000, or $.88 per share,
versus a net loss of $4,887,000, or $.52 per share, for the comparable period
in 1997. The difference in year end results is due primarily to a
non-cash, "imputed dividends" expense that resulted from the sale and issuance
of the Company's Series E Convertible Preferred Stock which raised $5.4
million in April and May of 1998. Excluding the effect of the imputed
dividends, the net loss applicable to common shareholders for 1998 would
have been $5,638,000 ($.54 per share).
Contract revenues, interest and product income totaled
$74,500 for the fourth quarter of 1998, compared to $174,000 for the same
period in 1997. For the year, these revenues totaled $256,000, compared
to $723,000 for the same period in 1997. The decrease reflects reduced
contract revenue in 1998. Operating expenses for the fourth quarter were
$1,526,000, as compared to $1,419,000 for the same period in 1997.
Operating expenses for the year totaled $5,894,000, compared to $5,177,000
for the same period in 1997. For both the fourth quarter and the year,
the increased expenditures were due primarily to regulatory filings and
preclinical testing in preparation for clinical trials of the Company's
soft tissue augmentation products.
As of December 31, 1998, the Company had $1,380,000 in
cash and cash equivalents which the Company believes is sufficient to fund
its operations through April, 1999. The Company is pursuing a number
of alternatives to meet the continuing capital requirements of its operations,
such as collaborative agreements and equity financings.
Last December, the Company filed with the U.S. Food and
Drug Administration an Investigational Device Exemption ("IDE") for the
use of its urethral bulking agent as a treatment for women suffering from
stress urinary incontinence. Approval of this IDE is required prior
to beginning clinical trials. In addition, the Company expanded its
efforts toward filing an IDE in mid-1999 for use of its dermal bulking agent
in cosmetic and reconstructive surgery applications.
"Our financial results for both the fourth quarter and
fiscal year reflect the necessary costs associated with bringing our soft
tissue augmentation products to the clinic," said Dr. 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 conduct clinical trials with our incontinence product later
this year."
"Our product pipeline is stronger and better defined than
ever before," Dr. Parmeter added. "Our bulking agents are ready for
clinical trials, pending FDA approval, 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., 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, scaffolds for wound healing and tissue engineering,
and depots for local drug delivery.
PROTEIN POLYMER TECHNOLOGIES, INC.
Condensed Financial Statements
(unaudited)
Three months ended Year ended
December 31, December 31,
SUMMARY OF OPERATIONS 1998 1997 1998 1997
Contract revenue $-- $135,000 $50,000 $459,510
Interest income 44,641 23,646 134,978 186,531
Product and
other income 29,827 15,173 70,846 76,917
Total revenues 74,468 173,819 255,824 722,958
Total expenses 1,525,541 1,419,040 5,894,027 5,176,891
Net loss (1,451,073) (1,245,221) (5,638,203) (4,453,933)
Undeclared, imputed
and/or paid dividends
on Preferred Stock 69,410 71,113 3,544,323 432,682
Net loss applicable
to common
shareholders $(1,520,483) $(1,316,334) $(9,182,526) $(4,886,615)
Net loss per common
share -
basic and diluted (0.14) (0.13) (0.88) (0.52)
Shares used in
computing net
loss per share -
basic and diluted 10,690,097 10,419,613 10,484,277 9,487,165
As of As of
Dec. 31, 1998 Dec. 31, 1997
BALANCE SHEET INFORMATION (audited)
Cash, cash equivalents and
short-term investments $1,380,000 $1,299,838
Working capital 600,000 697,020
Total assets 2,225,000 2,347,887
Total capital invested 34,258,000 25,549,644
Accumulated deficit 32,988,000 24,083,511
