R&D Collaboration with Ethicon Extended; J&J to Increase Investment
in Protein Polymer
SAN DIEGO, Dec. 10, 1996 -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI), today announced that the R&D phase of its collaboration with
Ethicon, Inc., a subsidiary of Johnson & Johnson, has been extended by mutual
agreement until December 16, 1997. In addition, Johnson & Johnson Development
Corporation (JJDC) will make a further equity investment in PPTI.
The collaboration is focused on jointly developing and commercializing
tissue adhesives and sealants for wound closure and related surgical
applications. Products targeted for development are based upon proprietary
protein polymers designed and genetically engineered by PPTI to meet Ethicon's
performance and biocompatibility standards for surgical wound closure and
sealant products. PPTI estimates that the applications targeted represent
approximately 12 million surgical procedures per year in the U.S.
Including R&D payments for this extension, Ethicon will
have contributed $1.7 million to PPTI's product research and formulation efforts.
In addition, Ethicon will bear all costs of preclinical testing. After
successful completion of the product formulation milestone, Ethicon will fund
development and commercialization expenditures associated with the collaboration,
including clinical trials and regulatory filings. The collaboration also provides
for an additional series of payments to PPTI based upon the successful achievement
of certain regulatory and product development milestones. If all of the
milestones including final FDA product approval are achieved, PPTI estimates
it will have received approximately $11 million in license fees, R&D and
milestone payments prior to product commercialization. Upon commercialization,
PPTI will receive royalty payments on product sales, and has an option to manufacture
all of the protein components and some or all of the finished product.
Ethicon has worldwide product marketing rights.
JJDC is a Johnson & Johnson subsidiary that makes equity
investments in companies with which Johnson & Johnson affiliated companies
have or may develop collaborative relationships. JJDC previously has invested
more than $3 million in private placements of PPTI equity securities. "The
continuation of our collaboration with Ethicon in combination with Johnson &
Johnson's equity investment optimizes the potential for technical and commercial
success in development of these unique surgical adhesives and sealants, and
their introduction into the $2.5 billion worldwide wound closure market,"
said J. Thomas Parmeter, President and Chief Executive Officer of Protein Polymer
Technologies, Inc.
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).
Future events could differ materially from those presented in this press
release. As a result, the reader is cautioned not to rely solely on these
forward-looking statements. The reader is advised to refer to the Company's
10-KSB and other documents on file with the Securities and Exchange Commission,
as well as the Company's Annual Report, copies of which are available from the
Company to determine risks associated with the above statements.
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