Protein Polymer Announces Extension of Current R&D Agreement With Ethicon
SAN DIEGO, Aug. 15 -- Protein Polymer Technologies, Inc.(Nasdaq: PPTI), today announced that the initial R&D phase of its
collaboration with Ethicon, Inc., a subsidiary of Johnson & Johnson, has been
extended by mutual agreement until the end of 1996. The collaboration is
focused on jointly developing and commercializing surgical tissue adhesives
and sealants for wound closure and related surgical applications. Products
targeted for development are based upon proprietary protein polymers
specifically designed and genetically engineered by PPTI to meet the
performance and biocompatibility standards required of surgical wound closure
and sealant products.
In the extended agreement, Ethicon will provide PPTI an additional
$400,000 for R&D expenses. PPTI must successfully complete the initial R&D
phase for the Agreement to continue beyond year end. If successful, Ethicon
will continue to contribute to ongoing R&D costs during product development as
well as make payments to PPTI for the achievement of certain regulatory and
product development milestones. If all of the milestones including final FDA
approval are achieved for both tissue adhesive and sealants products, PPTI
estimates it will receive approximately $10 million in license fees, R&D and
milestone payments prior to product commercialization. PPTI has an option to
manufacture the protein components and some or all of the final products, and
Ethicon has worldwide product marketing rights.
In addition, Johnson Johnson Development Corporation (JJDC), also a
subsidiary of Johnson & Johnson, will invest an additional $375,000 in PPTI
through the exercise of certain warrants for PPTI common stock that it
received as part of PPTI's Series D preferred stock transaction.
"We look forward to continuing our collaboration with Ethicon. Surgeons
have long sought safe and effective adhesive and sealant products as
alternatives to traditional sutures and staples. PPTI and Ethicon bring
together complementary strengths that optimize the chances of technical and
commercial success in developing and marketing these unique surgical sealants
and adhesives," said J. Thomas Parmeter, President and Chief Executive Officer
of Protein Polymer Technologies, Inc.
Protein polymers are synthetic proteins created "from scratch" through
chemical DNA (gene) synthesis, and produced in quantity by bacteria through
large scale fermentation. By design, they combine the biological
functionality and biocompatibility of natural proteins (e.g., silk, collagen,
elastin, fibrin) with the chemical functionality and exceptional physical
properties of synthetic polymers (e.g., nylon, spandex, polyester,
polyacrylamide). Because of their modular polymeric design, protein polymer
components can be assembled and reassembled into a wide variety of different
materials (such as films, fibers and gels), while also incorporating both
chemical and biological functionality as part of the final protein design.
PPTI holds several pioneering patents on the design and production of protein
polymers, and has numerous U.S. and international applications covering the
technology and specific products and product classes.
Protein Polymer Technologies, Inc. is a development stage
biomaterials company focused on tissue repair and drug delivery. In addition
to surgical adhesives and sealants, products being developed include bioactive
coatings, surgical adhesion barriers, tissue augmentation materials, and drug
delivery devices. PPTI also markets a line of protein polymer-activated
cell culture products under the trade names of ProNectin(R) and SmartPlastic(R). |