WALTHAM, Mass., Aug. 13 /PRNewswire-FirstCall/ -- Interleukin Genetics, Inc. (NYSE Amex: ILI) today announced financial and operational results for the second quarter ended June 30, 2009.
"The launch of our new Inherent Health brand of genetic test products marked a significant milestone for the Company in the second quarter. Our novel and unique product, the Weight Management genetic test, has been well received and is generating interest through a number of channels," said Lewis H. Bender, Chief Executive Officer. "We further executed on our key strategic objective, which is to grow our genetic testing business, by divesting the Alan James Group and signing a licensing partnership with LABEC Pharma for sales and distribution of our Heart Health product in Spain and Portugal."
Revenue from continuing operations for the three months ended June 30, 2009 was $0.2 million compared to $0.5 million for the same period in the prior year. The decrease was primarily attributable to lower contract research revenue. Genetic test revenue increased this quarter over the same period in the prior year as we experience positive growth in that segment of our business.
In addition, prior to the opening of business on July 1, 2009, the Company executed an agreement to sell substantially all of the Alan James Group assets of its subsidiary AJG Brands, Inc. to Pep Products, Inc. for a sales price of $4.6 million, with $4.4 million received on July 1, 2009 and the balance of $200,000 due to the Company after two years, subject to certain conditions.
Research and development expenses from continuing operations were $0.9 million for the three months ended June 30, 2009 compared to $0.7 million for the same period in the prior year. The increase is primarily attributable to ongoing costs associated with our patent portfolio. In addition, we continue to allocate resources to projects underway with Alticor, as well as the development of our own genetic test products.
Selling, general and administrative expenses from continuing operations were $1.3 million for the three months ended June 30, 2009, compared to $1.2 million for same period in the prior year. The increase was primarily attributable to product development costs associated with our new Inherent Health((TM)) brand of genetic tests.
The Company reported a net loss from continuing operations of $2.3 million, or $(0.07) per basic and diluted common share, for the second quarter of 2009, compared to $1.6 million, or $(0.05) for the same period in the prior year. The Company recorded a net loss from discontinued operations of $1.4 million or $(0.05) per basic and diluted common share. The Company reported a total net loss of $3.7 million, or $(0.12) per basic and diluted common share, for the second quarter of 2009 compared to $1.7 million or $(0.05) for the same period in the prior year. On June 30, 2009, the Company reported cash and cash equivalents of $0.9 million. In addition to cash on hand and the $4.4 million in cash proceeds received on July 1, 2009 from the sale of AJG assets, the Company has access to $9.3 million under its credit facility with Pyxis Innovations, Inc., an affiliate of Alticor.
2009 Highlights to Date
Conference Call and Webcast Information
Interleukin Genetics will host a live conference call and webcast today at 4:30 p.m. EDT to review the Company's new business developments and first quarter financial results. To access the live call, dial 877-440-5796 (domestic) or 719-325-4847 (international). The live webcast and replay access will be available on the Investors section of the Company's website at http://www.ilgenetics.com.
About Interleukin Genetics
Interleukin Genetics, Inc. (NYSE Amex: ILI) develops and markets genetic tests that empower consumers to prevent chronic diseases of aging and that assist pharmaceutical companies in the development and marketing of targeted therapeutics. The Company leverages its research, intellectual property, and biomarker development experience to facilitate the emerging personalized health market. Interleukin Genetics is headquartered in Waltham, MA. For more information please visit www.ilgenetics.com.
Certain statements contained herein are "forward-looking" statements including statements regarding growth of the Company's genetic testing business and the Company's ability to achieve compliance with the NYSE Amex continued listing standards by December 31, 2009. 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 the Company's products, the risk of technology and product obsolescence, delays in product development, the performance of commercial partners, the availability of adequate capital, the actions of competitors and other competitive risks, and those risks and uncertainties described in the Company's annual report on Form 10-K for the year ended December 31, 2008, quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission. The Company disclaims any obligation or intention to update these forward-looking statements.
INTERLEUKIN GENETICS, INC. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS Balance Sheet Data: 30-Jun 31-Dec 2009 2008 ---- ---- (Unaudited) (Audited) Cash and cash equivalents $851,526 $4,952,481 Total current assets 5,660,319 6,866,284 Total assets $7,634,065 $12,154,388 Total current liabilities $4,122,193 $3,666,961 Total liabilities 9,122,193 7,671,961 Total shareholders' (deficit) equity (1,488,128) 4,482,427 Total liabilities and shareholders' (deficit) equity $7,634,065 $12,154,388 Statement of Operations Data (Unaudited): Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Revenue: Genetic testing service revenue $95,309 $90,993 $232,821 $192,745 Contract research revenue 119,046 402,280 322,732 939,293 Other 8,638 28,346 14,904 31,453 Total revenue from continuing operations 222,993 521,619 570,457 1,163,491 Operating costs and expenses: Cost of genetic testing services 301,875 208,457 606,847 443,241 Research and development 874,192 708,855 1,755,748 1,522,226 Selling, general and administrative 1,334,472 1,208,325 2,813,625 2,667,637 Amortization of intangibles 28,863 22,841 57,727 44,341 Total operating costs and expenses 2,539,402 2,148,478 5,233,947 4,677,445 Loss from continuing operations (2,316,409) (1,626,859) (4,663,490) (3,513,954) Total other expense and income, net (34,401) 9,946 (58,239) 62,476 Net loss from continuing operations before income taxes (2,350,810) (1,616,913) (4,721,729) (3,451,478) Provision for income taxes 10,000 50 - (6,000) Net loss from continuing operations $(2,340,810)$(1,616,863) $(4,721,729)$(3,457,478) =========== =========== =========== =========== Net loss from discontinued operations (1,370,707) (49,482) (1,445,875) (83,969) Net Loss $(3,711,517)$(1,666,345) $(6,167,604)$(3,541,447) =========== =========== =========== =========== Net loss per basic and diluted common share from continuing operations $(0.07) $(0.05) $(0.14) $(0.11) ====== ====== ====== ====== Net loss per basic and diluted common share from discontinued operations $(0.05) $(0.00) $(0.05) $(0.00) ====== ====== ====== ====== Net loss per basic and diluted common share $(0.12) $(0.05) $(0.19) $(0.11) ====== ====== ====== ====== Weighted average common shares outstanding 32,010,387 30,976,909 31,933,612 30,904,916 ========== ========== ========== ==========
|SOURCE Interleukin Genetics, Inc.|
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