Protein Polymer Technologies Reports Second Quarter 1997 Financial Results
SAN DIEGO, Aug. 5, 1997 -- Protein Polymer Technologies, Inc.
(Nasdaq: PPTI), reports today its financial results for the second quarter
ended June 30, 1997. For the quarter, the Company had a net loss applicable
to common shareholders of $1,303,000 ($.14 a share), versus a net loss of
$825,000 ($.13 a share) for the comparable period a year ago. Year-to-date
PPTI had a net loss applicable to common shareholders of $2,302,000 ($.25 a
share), versus a net loss of $1,691,000 ($.27 a share) for the comparable
period a year ago. The net loss and loss per share figures include
accumulated dividends related to the Company's preferred stock. The Company
ended the second quarter with $3,295,000 in working capital, compared with
$840,000 as of December 31, 1996.
Contract revenues, interest and product income totaled $170,000 for the
second quarter, compared to $127,000 for the same period last year, a 34%
increase. Year-to-date these revenues totaled $389,000, compared to $164,000
for the same period last year, a 138% increase. Operating expenses for the
quarter were $1,351,000, as compared to $830,000 for the same period in 1996,
a 63% increase. Year-to-date the operating expenses totaled $2,447,000,
compared to $1,610,000 for the same period last year, a 52% increase.
For both the second quarter and year to date periods, the Company
substantially expanded its research and development in surgical adhesives and
sealants, and in ProLastin(TM) hydrogels targeted for use in plastic,
reconstructive, and urological soft tissue augmentation procedures. In
addition, the Company increased expenditures in preparing to implement the
U.S. Food & Drug Administration's (FDA's) Good Laboratory Practice (GLP)
regulations. Product manufactured under GLP regulations is required for
conducting preclinical and clinical studies supporting product safety and
efficacy in submissions for FDA marketing approvals.
"PPTI's increasing investment in R&D and product development results from
a number of important technical advances, and from our preparation to meet the
rigorous plant and procedural requirements involved in registering products
with the FDA," said J. Thomas Parmeter, PPTI's President and Chief Executive
Officer. "Our J&J-sponsored surgical adhesives and sealants program is making
excellent progress, and the R&D test results for our internally funded soft
tissue augmentation program have been extremely promising. As a result, we
expect ProLastin hydrogels to enter preclinical safety testing before year-
end. These materials are being targeted towards two large market
opportunities, bulking agents for use in cosmetic and reconstructive
procedures, and for the treatment of urinary incontinence."
Protein Polymer Technologies, Inc., a San Diego-based biotechnology
company, has developed a protein-based technology platform that allows the
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, surgical adhesion barriers 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 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 1996 Annual
Report and 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. |