WALTHAM, Mass., Nov. 13 /PRNewswire-FirstCall/ -- Interleukin Genetics, Inc. (Amex: ILI) today announced financial and business results for the third quarter ended September 30, 2008.
The Company reported a net loss of $1.6 million, or $(.05) per basic and diluted common share, for the third quarter of 2008 compared to a net loss of $1.1 million, or $(.04) per basic and diluted common share, for the same period last year.
"Collaborations are an important element of Interleukin Genetics' strategic plan to distribute and develop new, high value genetic tests, and we were pleased to lay significant groundwork for new partnerships this quarter," commented Lewis H. Bender, Chief Executive Officer. "Our revised agreement with Access Business Group International, the product development group at Alticor, now provides us with the opportunity to pursue new partners to help distribute our genetic tests and to form additional collaborations around our intellectual property. In addition, we executed a new license agreement with OralDNA to market our PST Genetic Test as an assessment of risk for periodontal disease and established a research collaboration with Geisinger Health System to explore the role of genetics in obesity."
Revenue for the third quarter of 2008 was $2.2 million, compared to $2.6 million for the same period last year. The decrease in revenue is attributable to a decrease in consumer product sales and lower contract research and development revenue from Alticor.
Research and development expenses were $933,000 for the third quarter of 2008 compared to $786,000 for the same period last year. The increase is primarily attributable to expenses relating to the Company's sponsored research agreement with Yonsei University offset by a decrease in consulting related expenses.
Selling, general and administrative expenses were $1.6 million for the third quarter of 2008 compared to $1.2 million for the same period last year. The increase is primarily attributable to increased promotional and advertising activities in both the personalized health segment and the consumer products segment, in addition to increased compensation expenses due to increased headcount.
On September 30, 2008, the Company had cash and cash equivalents of $5.9 million compared to $7.6 million of cash and cash equivalents on December 31, 2007. In addition, the Company has access to $10.3 million under credit facilities with Alticor, which permit borrowing until March 31, 2009.
Third Quarter and Recent Highlights
-- Entered into a Research and License Agreement with Geisinger Health System: In September 2008, Interleukin Genetics and Geisinger announced a collaboration permitting Interleukin Genetics to utilize Geisinger's databases to develop a series of genetic tests that will help physicians better understand an individual's inherited resistance to weight loss and gauge a patient's likelihood of success with diet and other weight loss techniques.
-- Revised Exclusive License Agreement with Alticor Corporation's Access Business Group International, LLC (ABG): In September 2008, Interleukin Genetics and ABG amended the companies' existing agreement to expand Interleukin Genetics' distribution network for genetic tests jointly developed by the two companies. The revised agreement permits the Company to sell products through additional channels of its choosing.
-- Licensed PST Genetic Test to OralDNA Labs, Inc.: In August 2008, Interleukin Genetics announced a marketing, sales and distribution agreement for its proprietary PST genetic risk assessment test for use in the diagnosis of periodontal disease. As compensation, the Company will receive a payment from OralDNA Labs for each product it sells, with minimum sales requirements.
-- Won International Award for Outstanding Research Published in Journal, Nutrition: In September 2008, the researchers at Interleukin Genetics received the 12th John M. Kinney Award for Nutrition and Metabolism at the annual Congress of the European Society of Parenteral and Enteral Nutrition in Florence, Italy. The award was given for the paper, "Interleukin-1 genotype-selective inhibition of inflammatory mediators by a botanical: a nutrigenetics proof of concept."
-- Presented findings at 2008 World Congress on Osteoarthritis: In September 2008, Kenneth Kornman, Ph.D., the Company's Chief Scientific Officer, presented important new research findings on the genetics of osteoarthritis (OA) in Rome, demonstrating that Interleukin Genetics' genetic test appears to identify knee OA patients likely to develop more severe joint destruction as they age.
-- Enhanced Heart Health Genetic Test Report Format: In July 2008, the Company launched an enhanced test report format and information package for the company's Heart Health Genetic Test, currently marketed under the brand name Gensona(R) by Amway Global. The new report includes quantified risk information on heart attack and coronary artery disease generated from clinical studies and provides individuals and their physicians with more complete information about a person's inflammation-based genetic risk for a heart attack, along with preventive measure guidance and scientific educational materials.
-- Expanded Board of Directors: In July 2008, the Company added three new directors to the Board: Mary E. Chowning, Glenn S. Armstrong, Ph.D., and Chief Executive Officer Lewis H. Bender. Ms. Chowning also will serve as the Chairperson of the Audit Committee of the Board.
Conference Call and Webcast Information
Interleukin Genetics will host a live conference call and webcast today at 4:30 pm. ET. To access the live call, dial 877-675-4756 (domestic) or 719-325-4902 (international). The live webcast and replay access of the teleconference will be available in the Investors section of the Company's website at http://www.ilgenetics.com.
About Interleukin Genetics
Interleukin Genetics, Inc. (Amex: ILI), is a healthcare company that specializes in the development of genetic biomarker tests for sale to the emerging personalized health market. The Company is focused on the future of health and medicine. Interleukin Genetics uses its leading genetics research and scientific capabilities to develop and commercialize innovative diagnostic and risk assessment genetic tests. These products could help to improve an individual's understanding of needed lifestyle changes or of therapeutic products that can be used to better manage their health. Interleukin Genetics has developed and commercialized genetic tests for risk assessment of coronary artery disease, periodontal disease, and general nutrition. Through its AJG subsidiary, the Company also currently offers an array of Nutraceutical and OTCeuticals(R) products, including Ginkoba(TM), Ginsana(R) and Venastat(R) which are sold at the nation's largest food, drug and mass retailers. Interleukin Genetics is headquartered in Waltham, MA. For more information about Interleukin Genetics and its ongoing programs, please visit http://www.ilgenetics.com.
Certain statements contained herein are "forward-looking" statements
including statements regarding the company's ability to develop diagnostic,
personalized nutritional and therapeutic products to prevent or treat
diseases of inflammation and other genetic variations, the ability to
screen nutritional compounds for their effects on inflammatory responses
and other genetic variations, given specific genetic patterns and the
ability to make progress in advancing the company's core technologies.
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, quarterly reports on Form 10-Q and
other filings furnished to the Securities and Exchange Commission. The
company disclaims any obligation or intention to update these
INTERLEUKIN GENETICS, INC. AND SUBSIDIARIES
Balance Sheet Data : 30-Sep 31-Dec
Cash and cash equivalents $5,914,848 $7,646,468
Total current assets 7,858,834 10,012,508
Total assets $13,345,831 $16,385,949
Total current liabilities $3,435,943 $6,162,535
Total liabilities 7,435,943 6,193,535
Total shareholders' equity 5,909,888 10,192,414
Total liabilities and shareholders'
equity $13,345,831 $16,385,949
Statement of Operations Data
(Unaudited): Three Months Ended Nine Months Ended
Sept 30, Sept 30,
2008 2007 2008 2007
Genetic testing service
revenue $102,782 $157,645 $295,527 $648,910
Net consumer products
sales 1,626,001 1,792,688 5,593,267 5,173,555
revenue 441,467 609,234 1,380,759 1,558,205
Other 1,345 1,718 32,799 8,360
Total revenue 2,171,595 2,561,285 7,302,352 7,389,030
Operating costs and
Cost of genetic testing
services 235,795 211,953 679,036 721,090
Cost of consumer
products sold 764,470 995,769 2,963,676 2,882,072
development 933,004 785,942 2,455,230 2,246,340
Selling, general and
administrative 1,562,400 1,163,531 5,451,137 4,821,032
intangibles 334,955 413,209 996,669 1,236,074
expenses 3,830,624 3,570,404 12,545,748 11,906,608
Loss from operations (1,659,029) (1,009,119) (5,243,396) (4,517,578)
Total other income and
expense, net (11,820) (68,540) 49,599 (188,680)
Net loss before income
taxes (1,670,849) (1,077,659) (5,193,797) (4,706,258)
Provision for income
taxes 29,000 (4,000) 10,500 (12,000)
Net loss $(1,641,849) $(1,081,659) $(5,183,297) $(4,718,258)
Net loss per basic and
diluted common share $(0.05) $(0.04) $(0.17) $(0.17)
Weighted average common
shares outstanding 31,792,999 27,637,303 31,204,196 27,576,940
|SOURCE Interleukin Genetics, Inc.|
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