WALTHAM, Mass., Nov. 7 /PRNewswire-FirstCall/ -- Interleukin Genetics, Inc. (Amex: ILI), a genetics-focused personalized health company that develops preventive consumer products and genetic tests for sale to the emerging personalized health market, today announced results for its third quarter ended September 30, 2007.
The Company recorded revenue of $2.6 million for the third quarter, compared to revenue of $1.3 million for third quarter ended September 30, 2006, a 92% increase. Net loss for the quarter was $1.1 million, or $(0.04) per basic and diluted share compared to a net loss of $1.8 million, or $(0.07) per basic and diluted share for the same quarter last year.
The increase in revenue for the third quarter was attributable to the Company's Consumer Products segment which sells branded nutritional supplemental products to mass retail outlets. Interleukin reported $158,000 in revenue from its Genetic Testing segment, $1.8 million in revenue from its Consumer Products segment and $609,000 in revenue from its Research segment.
"During the quarter we refined our focus to better leverage our science and further establish Interleukin's leadership position in genetic testing and the personal wellness field", said Thomas Curran, interim Chief Executive Officer. "We have prioritized new product development programs in areas of significant opportunity such as gastric cancer and obesity. We continue to focus our efforts on our strategic relationship with Alticor to ensure strong marketing efforts and a positive consumer experience. As we look forward to the rollout of additional products in coming years we continue to explore new delivery channels and other potential strategic partners worldwide."
-- In collaboration with Dr. Steven Abramson, Director of the Division of
Rheumatology at the Hospital for Joint Diseases of New York University
Medical Center, Interleukin has initiated a study on the genetics of
-- An Interleukin Genetics study published in Nutrition reported that a
botanical supplement that included rose hips, a blueberry and
blackberry mixture and a grape vine extract, reduced inflammation more
effectively in individuals with genetic variations that are associated
with over-expression of inflammation and risk for early heart attacks.
-- The Company continues to expand its scientific advisory board, having
recently announced the addition of Dr. Emad E-Omar, a gastric cancer
expert and Drs. James Meigs and John Foreyt, both obesity/diabetes
management experts. These three advisors will help to guide
Interleukin's development programs in key growth areas related to
obesity and weight management, and gastric cancer.
"We are particularly excited about opportunities for Interleukin regarding gastric cancer, which is the second most common cause of cancer deaths worldwide", added Ken Kornman, President and Chief Scientific Officer. "Utilizing our research and proprietary genetic technology in the field of inflammation, we expect to develop tests that will contribute towards improving the prevention and medical management of gastric cancer. We plan to conduct studies in Asia in 2008 and anticipate having a product in the marketplace in the second half of 2009. We are also making good advances on the development of our weight loss test and expect to begin studies in medical weight loss clinics in the U.S. in 2008."
Research and development expenses were $786,000 compared to $721,000 for the third quarter of 2006. This increase primarily reflects the timing of third party costs related to ongoing research projects.
There were no significant changes in selling, general and administrative expenses for the period. Interleukin reported selling, general and administrative expenses $1.2 million for the quarter ended September 2007, compared to $1.2 million for the same period last year.
Interleukin reported cash and cash equivalents of $8.0 million as of September 30, 2007, compared to $10.1 million at December 31, 2006. Under its credit facility the Company had access to $14.3 million on September 30, 2007.
ILI Earnings Conference Call
To access the live call on November 7, 2007 at 4:30 PM EST, dial (800) 366-3964 (domestic) or (303) 205-0055 (international). The call will also be available live via webcast at http://www.ilgenetics.com.
Replay access of the teleconference will be available for two weeks following the call by calling (800) 405-2236 (domestic) or (303) 590-3000 (international). The passcode for the replay is 11101550. The webcast will be archived following the call at http://www.ilgenetics.com.
Interleukin Genetics, Inc. (Amex: ILI) is a genetics-focused personalized health company that develops preventive consumer products and genetic tests for sale to the emerging personalized health market. Focused on the future of health and medicine, Interleukin uses its leading genetics research and scientific capabilities to develop and test innovative preventive and therapeutic products. Interleukin currently offers an array of Nutraceuticals and OTCeuticals(R), including Ginkoba(R), Ginsana(R) and Venastat(R) which are sold at the nation's largest food, drug and mass retailers, and has commercialized genetic tests for periodontal disease risk assessment, cardiovascular risk assessment, and general nutrition assessment. Interleukin is headquartered in Waltham, MA. For more information about Interleukin and its ongoing programs, please visit http://www.ilgenetics.com.
Certain statements contained herein are "forward-looking" statements including statements regarding our ability to develop diagnostic, personalized nutritional and therapeutic products to prevent or treat diseases of inflammation and other genetic variations, our ability to screen nutritional compounds for their effects on inflammatory responses and other genetic variations, given specific genetic patterns, our ability to make progress in advancing our core technologies, our ability to identify suitable commercial partners and enter into favorable agreements with them, and our expectations regarding future revenues from our nutritional supplement products. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, the risk of market acceptance of our products, the risk of technology and product obsolescence, delays in product development, the performance of our commercial partners, the availability of adequate capital, the actions of our competitors and other competitive risks, our ability to integrate acquired businesses, our ability to maintain relationships with our important customers, and those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2006, as amended, filed with the Securities and Exchange Commission, our quarterly reports on Form 10- Q and other filings made by us with the Securities and Exchange Commission. We disclaim any obligation or intention to update these forward-looking statements.
INTERLEUKIN GENETICS, INC. AND SUBSIDIARIES
Balance Sheet Data:
September 30, December 31,
Cash and cash equivalents $8,058,276 $10,082,919
Total current assets 10,468,352 12,991,113
Total assets $18,795,836 $22,630,285
Total current liabilities $6,927,948 $7,388,353
Total liabilities 9,157,742 8,844,354
Total shareholders' equity 9,638,094 13,785,931
Total liabilities and shareholders'
equity $18,795,836 $22,630,285
Operations Data Three Months Ended Nine Months Ended
(Unaudited): September 30, September 30,
2007 2006 2007 2006
service revenue $157,645 $654,482 $648,910 $2,219,145
products sales 1,792,688 674,725 5,173,555 674,725
revenue 609,234 - 1,558,206 -
Other 1,718 5,724 8,360 17,975
Total revenue 2,561,285 1,334,931 7,389,031 2,911,845
Operating costs and
Cost of genetic
testing services 211,953 331,836 721,090 937,770
Cost of consumer
products sold 995,769 675,101 2,882,072 675,101
development 785,942 721,731 2,246,340 2,382,390
Selling, general and
administrative 1,163,531 1,196,263 4,821,032 2,702,517
intangibles 413,209 145,322 1,236,074 193,830
expenses 3,570,404 3,070,253 11,906,608 6,891,608
Loss from operations (1,009,119) (1,735,322) (4,517,578) (3,979,763)
Total other income and
expense, net (68,540) (98,327) (188,680) (366,546)
Net loss before income
taxes (1,077,659) (1,833,649) (4,706,258) (4,346,309)
Provision for income
taxes (4,000) - (12,000) -
Net loss $(1,081,659) $(1,833,649) $(4,718,258) $(4,346,309)
Net loss per basic and
diluted common share $(0.04) $(0.07) $(0.17) $(0.18)
outstanding 27,637,303 25,702,739 27,576,940 24,653,698
|SOURCE Interleukin Genetics, Inc.|
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