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Protein Polymer Technologies Reports Third Quarter Financial Results
SAN DIEGO, Nov. 6 -- Protein Polymer Technologies, Inc. (Nasdaq: PPTI), reports today its financial results for the third quarter and
nine months ended September 30, 1998.
For the quarter, the Company had a net loss applicable to common
shareholders of $1,529,000 ($.14 a share), versus a net loss of $1,268,000
($.14 a share) for the comparable period in 1997. For the nine months ended
September 30, 1998, the Company's financial results include, as is required by
the Securities and Exchange Commission, the one-time, non-cash "imputed
dividends" of $3,266,000 from the sale and issuance of the Company's Series E
Preferred Convertible stock, which raised approximately $5.4 million in April
and May. Including the imputed dividends, the Company had a net loss
applicable to common shareholders of $7,662,000 ($.73 a share) for the nine
months ended September 30, 1998, versus a net loss of $3,570,000 ($.39 a
share) for the same period in 1997. Excluding the effect of the imputed
dividends, the net loss applicable to common shareholders would have been
$4,396,000 ($.42 per share) for the nine months ended September 30, 1998.
Operating expenses for the quarter were $1,508,000 as compared to
$1,311,000 for the same period in 1997. For the nine months ended September
30, 1998, operating expenses totaled $4,368,000 compared to $3,758,000 for the
same period in 1997. The increased expenditures were due to increased
regulatory activity and preclinical testing in preparation for clinical
testing of the Company's soft tissue augmentation products. Contract
revenues, interest and product income totaled $48,000 for the quarter,
compared to $161,000 for the same period in 1997. For the nine months ended
September 30, 1998, these revenues totaled $181,000, compared to $549,000 for
the same period in 1997. The decreases were due to reduced contract revenues
and interest income. The cash balance was $2,560,000 as of September 30,
1998, compared to $1,300,000 as of December 31, 1997.
"Our financial results for the third quarter and first nine months of 1998
reflect our expanding commitment to the development and registration of our
soft tissue augmentation products," said J. Thomas Parmeter, PPTI's President
and Chief Executive Officer. "We expect to continue to spend at this level or
higher, to the extent capital is available, as we prepare to file
Investigational Device Exemptions (IDE) with the U.S. Food and Drug
Administration (FDA) and begin human clinical studies for both the female
stress urinary incontinence indication and for cosmetic applications."
"Our strategy has been to develop our potential products in-house until
sufficient shareholder value can be obtained from a strategic partnering
relationship. We are currently in discussions with a number of potential
partners regarding these soft tissue augmentation applications and for tissue
adhesive product opportunities."
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, tissue
adhesives and sealants, scaffolds for wound healing and tissue engineering,
and depots for local drug delivery.
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 1997 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 Nine months ended
September 30, September 30,
SUMMARY OF OPERATIONS 1998 1997 1998 1997
Contract revenue $-- $91,510 $50,000 $324,510
Interest income 41,771 41,151 90,336 162,885
Product and
other income 6,725 27,840 41,020 61,744
Total revenues 48,496 160,501 181,356 549,139
Total expenses 1,508,172 1,311,291 4,368,486 3,757,851
Net loss $(1,459,676) $(1,150,790) $(4,187,130) $(3,208,712)
Undeclared, imputed
and/or paid
dividends on
Preferred Stock 69,410 117,657 3,474,913 361,569
Net loss applicable
to common
shareholders $(1,529,086) $(1,268,447) $(7,662,043) $(3,570,281)
Net loss per
common share -
basic and diluted $(0.14) $(0.14) $(0.73) $(0.39)
Shares used in
computing net loss
per share - basic
and diluted 10,575,811 9,332,156 10,492,508 9,173,040
As of As of
Sept. 30, 1998 Dec. 31, 1997
(audited)
BALANCE SHEET INFORMATION
Cash, cash equivalents and
short-term investments $2,560,460 $1,299,838
Working capital 1,973,867 697,020
Total assets 3,491,690 2,347,887
Total capital invested 34,248,515 25,549,644
Accumulated deficit (31,536,890) (24,083,511)
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