Protein Polymer Reports 2nd Quarter 1999 Financial Results and Initial
Closing of a New Preferred Stock Offering
SAN DIEGO, Aug. 17 -- Protein Polymer Technologies,
Inc. (Nasdaq: PPTI) reports today its financial results for the second quarter
ended June 30, 1999. In addition, the Company today completed an initial
closing of a private placement of its Series G Convertible Preferred Stock
with a small group of accredited and institutional investors. PPTI
received approximately $1.8 million at the initial closing. The proceeds
will enable the Company to begin human clinical testing scheduled to begin
this fall of the Company's lead product, an injectable treatment for female
stress urinary incontinence.
2nd Quarter 1999 Financial Results: In the second
quarter of 1999, PPTI had a net loss applicable to common shareholders of
$1,241,000 ($.10 a share), versus a net loss of $4,786,000 ($.46 a share)
for the comparable period a year ago. For the six months ended June
30, 1999, the Company had a net loss applicable to common shareholders of
$2,415,000 ($.21 a share), versus a net loss of $6,133,000 ($.59 a share)
for the comparable period a year ago. The net loss and loss per share
include imputed, accumulated and distributed dividends related to the Company's
preferred stock. As of June 30, 1999, PPTI had cash and cash equivalents
of $141,000. On a proforma basis, including the proceeds of the initial
closing of the Series G preferred stock, the Company had cash and cash equivalents
of approximately $1,900,000 net of offering expenses.
Contract revenues, interest and product income totaled
$20,000 for the second quarter, compared to $45,000 for the same period
last year, the decrease being due to reduced contract revenues. For
the six months ended June 30, 1999, these revenues totaled $56,000, compared
to $133,000 for the same period last year. Operating expenses for
the quarter were $1,192,000, as compared to $1,496,000 for the same period
in 1998. For the six months ended June 30, 1999, operating expenses
totaled $2,333,000, compared to $2,860,000 for the same period last year.
The decrease in both periods is due primarily to reduced research and development
expenses and the completion of non- reoccurring preclinical studies required
by the U.S. Food & Drug Administration (FDA) prior to beginning human
clinical testing. The Company's product for the relief of female stress
urinary incontinence was approved to begin human clinical testing on May
20th. The Company's expenses are anticipated to rise when the human
clinical trials are initiated, currently scheduled for the fourth quarter
of 1999.
For both the 2nd quarter and six month period, the Company
continued research and development efforts in its surgical adhesives and
sealants program, with particular emphasis on the development of an adhesive
Spinal disc repair product for the treatment of lower back pain, in addition
to expanding its program in hydrogel-based polymers targeted for use in
cosmetic, plastic and reconstructive, and urological soft tissue augmentation
surgical procedures.
Series G Preferred Stock Offering: Each share of
Series G Convertible Preferred Stock is priced at $100 per share, and the
total offering of up to 35,000 shares provides for additional closings between
now and the middle of September. Each share can be converted at any
time by the holder into common stock at a price of $0.50 per share, subject
to certain antidilution adjustments. Each share of Preferred Stock
also receives a common stock warrant, exercisable for 12 months, that allows
the holder to acquire 200 shares of PPTI common stock at a price of $0.50
per share. The Preferred Stock, warrants and underlying common stock
have not been registered under the Securities Act of 1933, as amended, and
may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
Protein Polymer Technologies, Inc., a San Diego-based
biotechnology company, has developed a protein-based technology platform
that allows creation of new biomaterials which target multiple applications
in biomedical markets. The different classes of biocompatible polymers
developed by PPTI have been genetically engineered to enable cell growth,
promote the regeneration of tissue, bond to synthetic surfaces and resorb
into tissue at controlled rates. Targeted applications include tissue
adhesives and sealants, tissue augmentation, wound healing, and drug delivery
vehicles.
This press release may contain forward-looking statements
that are based on management's expectations. Actual results could
differ materially from those expressed here; further, the Company is not
obligated to comment specifically on those differences. Risks associated
with the Company's activities include raising adequate capital to continue
operations, scientific and product development uncertainties, competitive
products and approaches, continuing collaborative partnership interest and
funding, regulatory testing and approvals, and manufacturing scale-up.
The reader is encouraged to refer to the Company's 1998 Annual Report and
10-KSB, and recent filings with the Securities and Exchange Commission,
copies of which are available from the Company, to further ascertain the
risks associated with the above statements.
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Six months ended
June 30, June 30,
1999 1998 1999 1998
SUMMARY OF OPERATIONS
Contract revenue $-- $-- $-- $50,000
Interest income 6,556 39,909 19,559 48,565
Product and
other income 13,868 5,506 36,516 34,295
Total revenues 20,424 45,415 56,075 132,860
Total expenses 1,191,746 1,495,632 2,333,496 2,860,314
Net loss $(1,171,322) $(1,450,217) $(2,277,421) $(2,727,454)
Undeclared and/or
paid accumulated
dividends on
Preferred Stock 69,220 3,335,936 137,678 3,405,503
Net loss applicable
to common
shareholders $(1,240,542) $(4,786,153) $(2,415,099) $(6,132,957)
Loss per share $(0.10) $(0.46) $(0.21) $(0.59)
Weighted average
shares used
in computing loss
per share 12,505,778 10,471,922 11,727,586 10,450,627
As of As of
June 30, 1999 Dec. 31, 1998
BALANCE SHEET INFORMATION (audited)
Cash, cash equivalents and
short-term investments $141,000 $1,383,000
Working capital (597,000) 600,000
Total assets 846,000 2,225,000
Total capital invested 35,215,000 34,258,000
Accumulated deficit (35,265,000) (32,988,000)
