Protein Polymer Technologies Reports Third Quarter 1999 Financial Results
SAN DIEGO, Nov. 10 -- Protein Polymer Technologies,
Inc. (Nasdaq: PPTI), reports today its financial results for the third quarter
ended September 30, 1999. For the quarter, the Company had a net loss
applicable to common shareholders of $827,000 ($0.06 a share), versus a
net loss of $1,529,000 ($0.14 a share) for the comparable period a year
ago. For the nine month period ended September 30, 1999, the net loss
applicable to common shareholders was $3,243,000 ($0.26 a share) as compared
to $7,662,000 ($0.73 a share) for the same period in 1998. The net
loss and loss per share amounts include accumulated and distributed dividends
related to the Company's preferred stock. The reduction in losses
for both the three and the nine month periods was due primarily to cost
cutting measures implemented during the quarter, and to the completion of
preclinical studies and initial regulatory filings in preparation for beginning
human clinical trials of the Company's injectable hydrogel implant for the
treatment of female stress urinary incontinence, scheduled to start next
month.
Operating expenses for the quarter were $784,000 and
$3,117,000 for the nine month period, as compared to $1,508,000 and $4,368,000
for the same periods in 1998. The decrease was due primarily to planned
cost cutting measures taken in the third quarter, and to reduced research
and development expenses following the completion of preclinical testing
and the filings associated with the Company's Investigational Device Exemption
(IDE) obtained from the U.S. Food and Drug Administration (FDA) in May 1999.
The approved IDE requested permission to initiate human clinical trials
of PPTI's injectable urethral bulking agent for the treatment of female
stress urinary incontinence.
PPTI's cash balance as of September 30, 1999 was $998,000.
At planned spending levels this amount is expected to meet the Company's
anticipated capital requirements until February, 2000.
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 planned reductions in operating expenses
and the completion of preclinical testing; additional development expenditures
will be required for impending 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
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.
T
Protein Polymer Technologies, Inc.
Condensed Financial Statements
(unaudited)
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
SUMMARY OF OPERATIONS
Contract revenue $2,320 $-- $2,320 $50,000
Interest income 10,017 41,772 29,575 90,337
Product and
other income 14,111 6,725 50,627 41,019
Total revenues 26,448 48,497 82,522 181,356
Total expenses 783,923 1,508,173 3,117,419 4,368,486
Net loss $(757,475) $(1,459,676) $(3,034,897) $(4,187,130)
Undeclared
and/or paid
dividends on
Preferred
Stock 69,220 69,410 207,659 3,474,913
Net loss
applicable
to common
shareholders $(826,696) $(1,529,086) $(3,242,556) $(7,662,043)
Net loss per
common share -
basic and
diluted $(0.06) $(0.14) $(0.26) $(0.73)
Shares used in
computing net
loss per share
- basic and
diluted 13,367,249 10,575,811 12,280,147 10,492,508
As of As of
Sep. 30, 1999 Dec. 31, 1998
BALANCE SHEET INFORMATION (audited)
Cash, and cash
equivalents $998,000 $1,383,000
Working capital 729,000 600,000
Total assets 1,634,000 2,225,000
Total capital invested 37,293,000 34,258,000
Accumulated deficit (36,023,000) (32,988,000)
