Protein Polymer Technologies Announces Cutbacks In Operating Staff and
Operations
SAN DIEGO, June 25 -- Protein Polymer Technologies,
Inc. (Nasdaq: PPTI), today announced that it is reducing its work force
by approximately 60 percent. The layoff of eighteen employees is effective
as of June 30, 1999. Even under reduced operations, the Company currently
has less than two months cash reserves.
PPTI will continue to focus on preparing for the initiation
of human clinical testing of the Company's urethral bulking agent for the
treatment of female stress urinary incontinence, and on developing strategic
partnering relationships. In May, the Company received FDA approval to begin
a pilot study with its incontinence product; actual initiation is dependent
upon the Company raising additional cash or completing a partnership agreement.
To date, the Company's efforts to consummate a strategic partnering relationship
have not met with success, although discussions are still in progress.
"Conditions in the biotechnology capital markets have
made it almost impossible for companies without sales or near-term expectations
for FDA product approvals to raise additional capital," said J. Thomas Parmeter,
PPTI's President and CEO. "For small public biotech companies, this capital
markets problem has been compounded by cutbacks in corporate budgets for
research and development, in particular as pertaining to products facing
several years of regulatory approvals. We are working hard to surmount these
difficulties and hope to be able to restore the Company to full operations
in the near future. However, any change in operations is dependent upon
completing partnering or equity financing arrangements, and there can be
no assurance that this will happen within the time available."
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.
