Protein Sciences Corporation announces financing agreement

Business Wire, April 16, 1997

MERIDEN, Conn.--(HealthWire)--April 16, 1997--Protein Sciences Corporation (PSC), a biopharmaceutical company, announced today that it has entered into an agreement with Burnham Securities, Inc., a New York City investment banking firm, to manage a bridge financing of up to $10 million in the form of secured notes with warrants.

PSC proposes to use the proceeds to (i) develop new products that meet its strict criteria in the fields of human and animal health and human genomics, (ii) provide the financial strength to make PSC a more credible bidder for codevelopment and manufacturing contracts, and (iii) provide the cash reserves needed to offset month-to-month variations in cash flow.

Daniel D. Adams, PSC's Chief Executive Officer, stated, "We discussed this financing with several firms but were convinced that we would be best served by Burnham Securities. It is a highly respected firm with a history of success that knows our company well." He added, "We expect to be able to meet cash requirements for 1997 from business on hand and reasonably anticipated, but we lack the resources to leverage our core technology and grow. In addition, we have received encouraging feedback from several high quality investment banking firms regarding an initial public offering, and the financing will provide the resources to pursue this goal."

Protein Sciences Corporation, a biotechnology company founded in 1983, develops and manufactures biopharmaceutical products based on large, complex, recombinant (i.e., genetically-engineered) proteins. Such proteins make up the majority of compounds that potentially have value as human and animal therapeutics. Over the past 14 years, PSC has developed a proprietary manufacturing system for biopharmaceutical products that is inherently safer and more versatile with higher yields (lower cost) than current and announced capabilities of future systems. Products that can benefit from its advanced technology include those targeted for price competitive markets, such as human and animal vaccines, products requiring high doses such as monoclonal antibodies and proteins incorporated into liposomes, and products requiring high purity and/or speed of manufacture such as proteins for genomic companies, research reagents and diagnostics. PSC believes that its manufacturing system's cost advantages fit well with the managed care environment, human genomics and other price sensitive markets such as animal vaccines. The Company's current development partners include: Pasteur Mrieux Connaught (certain human vaccines), SEQUUS Corporation (protein incorporated into a liposome for AIDS) and Pharmacia & Upjohn Animal Health (certain companion animal vaccines).

CONTACT: Daniel D. Adams

Protein Sciences Corporation

(203) 686-0800