Protein Polymer Technologies Reports First Quarter 1999 Financial Results
SAN DIEGO, May 17 -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI), reports today its financial results for the first quarter
ended March 31, 1999. For the quarter, the Company had a net loss applicable
to common shareholders of $1,175,000 ($.11 a share), versus a net loss of
$1,347,000 ($.13 a share) for the comparable period a year ago. The net
loss and loss per share amounts include accumulated and distributed dividends
related to the Company's preferred stock.
Contract revenues, product and interest income totaled
$36,000 for the first quarter ended March 31, 1999, compared to $87,000
for the same period last year. The decrease was due to reduced contract
revenues and interest income. Operating expenses for the quarter were $1,142,000,
as compared to $1,365,000 for the same period in 1998. The decrease was
due primarily to reduced research and development expenses following the
completion of preclinical testing and the filing of the Company's Investigational
Device Exemption with the U.S. Food and Drug Administration (FDA) requesting
permission to initiate human clinical trials of its injectable urethral
bulking agent for the treatment of female stress urinary incontinence.
PPTI's cash balance as of March 31, 1999 was $305,000.
Subsequently on April 15, 1999, the Company received approximately $506,000
from the exercise of redeemable warrants issued as part of its initial public
offering. On May 12, 1999, the Company received $416,000 from the exercise
of warrants issued in conjunction with the sale of its Series E Convertible
Preferred Stock. On a pro forma basis as of March 31, 1999, the cash balance
including the net amount raised with existing cash would be $1,227,000.
At planned spending levels this amount is expected to meet the Company's
anticipated capital requirements until July 1999.
The Company plans to raise additional funds for continuing
operations through private or public offerings and collaborative agreements.
In addition, the Company is continuing to pursue other strategic alternatives.
However, there can be no assurance that any of these fundings will be consummated
in the necessary time frames needed for continuing operations or on terms
favorable to the Company. If adequate funds are not available, the Company
will be required to significantly curtail its operating plans and may have
to sell or license out significant portions of the Company's technology
or potential products.
"Our financial results for the quarter reflect a reduction
in outside expenditures due to the completion of preclinical testing; additional
development expenditures will be required for clinical testing and product
registration with the FDA," said J. Thomas Parmeter, PPTI's President and
Chief Executive Officer. "While our ability to proceed is entirely dependent
on identifying additional sources of working capital, there is continued
interest in our programs by potential partners, and we are currently pursuing
a number of opportunities. We are in discussions with potential strategic
partners for each of the soft tissue augmentation products, and in our redefined
surgical adhesives and sealants program, we are seeking to create a partnering
relationship with a leading orthopedic device company for the development
of a new injectable Spinal disc repair product for the treatment of lower
back pain, although there is no assurance that these efforts will ultimately
lead to a strategic alliance."
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, adhesive fillers 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,
SUMMARY OF OPERATIONS 1999 1998
Contract revenue $ -- $ 53,750
Product and other income 22,649 25,039
Interest income 13,002 8,656
Total revenues 35,651 87,445
Total expenses 1,141,751 1,364,682
Net loss (1,106,100) (1,277,237)
Undeclared and/or paid
dividends on Preferred Stock 69,410 71,113
Net loss applicable to
common shareholders $(1,174,559) $(1,346,804)
Net loss per common share -
basic and diluted (0.11) (0.13)
Shares used in computing net
loss per share -
basic and diluted 10,940,748 10,429,094
As of As of
Mar. 31, 1999 Dec. 31, 1998
BALANCE SHEET INFORMATION (audited)
Cash, cash equivalents and
short-term investments $ 305,113 $1,380,000
Working capital (437,307) 600,000
Total assets 1,095,205 2,225,231
Total capital invested 34,284,395 34,258,000
Accumulated deficit (34,094,064) (32,988,000)
