Exhibit 99.1
Interleukin Genetics Reports Fourth Quarter Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)--March 21, 2003--Interleukin
Genetics, Inc. (OTCBB: ILGN) today reported financial results for the
quarter and year ended December 31, 2002. For the quarter, the Company
reported a net loss of $1,080,000 or $0.05 per basic and diluted share
as compared to a net loss of $1,101,000 or $0.05 per basic and diluted
share for the same period last year. For the twelve-month period, the
Company reported a net loss of $5,306,000 or $0.24 per basic and
diluted share compared to a loss of $4,523,000 or $0.21 per basic and
diluted share last year.
Revenues for the quarter were $188,000 compared to $19,000 in the
fourth quarter of 2001. For the twelve months ended December 31, 2002,
the Company reported revenues of $290,000 compared to revenues of
$203,000 in 2001. The increase in revenue during the three and twelve
months periods was due to a $250,000 technology option fee received by
the Company. Of this total $179,000 of revenue was recorded during the
fourth quarter.
Research and development expenditures were $578,000 in the quarter
ended December 31, 2002 compared to $636,000 in the comparable
quarterly period ended December 31, 2001. Research and development
expenses for the year were $3,082,000 compared to $2,687,000 last
year. The year over year increase was primarily the result of
increases in personnel and subcontract costs associated with our
research projects.
Selling, general and administrative expenses were $569,000 and
$2,333,000 for the three and twelve-month periods ended December 31,
2002 compared to $503,000 and $2,244,000 during the same periods last
year. The increase in selling, general and administration costs were
primarily due to increases in legal expenses related to financing
efforts.
As of December 31, 2002, the Company reported total assets of
$1,250,000, including $734,000 in cash and cash equivalents. The
Company also reported total liabilities of $2,634,000 and a negative
net worth of $1,385,000.
On March 5, 2003, subsequent to the fiscal year end, the Company
announced that it entered into a broad strategic alliance with several
affiliates of the Alticor family of companies to develop and market
novel nutritional and skin care products. The alliance includes an
initial $7,000,000 equity investment, with an additional $2,000,000
payment possible if we achieve certain milestones, a two-year,
$5,000,000 research and development agreement and a licensing
agreement with royalties on any marketed products. The agreement also
includes a working capital credit line of $1,500,000 and the deferment
of outstanding loan repayment and the refinancing of bridge financing
obligations. With this agreement the Company anticipates that it will
have sufficient resources to conduct operations as planned at least
through early 2005.
About Interleukin
Interleukin Genetics is a biotechnology company focused on
inflammation. The company uses functional genomics to develop
diagnostic nutritional and therapeutic products based on the genetic
variations in people to help prevent or treat diseases of
inflammation. Interleukin's TARxGET (Translating Advanced Research in
Genomics into more Effective Therapeutics) programs focus on the areas
of cardiovascular disease, osteoporosis, rheumatoid arthritis and
alzheimer's disease. These products will personalize the selection of
nutritional and therapeutic products and enable the managed care
industry to improve patient care and better allocate resources. 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 the development and
marketing of novel nutritional and skin care products, royalties and
milestone payments that we may receive, the availability of credit
facilities, the sufficiency of resources to conduct planned operations
through early 2005 and our ability to develop diagnostic personalized
nutritional and therapeutic products to prevent or treat diseases of
inflammation and to enable the managed care industry to improve
patient care and better allocate resources. 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, our ability to develop diagnostic personalized
nutritional and therapeutic products to prevent or treat diseases of
inflammation and to enable the managed care industry to improve
patient care and better allocate resources, our ability to market
products, our ability to achieve the milestone that would result in an
additional $2.0 million payment, our ability to receive advances
against the $1.5 million working capital credit line, the actions of
Alticor and affiliates, which have voting control of our common stock
on most matters, including the efforts and success of Alticor and its
affiliates in developing and marketing products for which we would
receive a royalty, our ability to conduct planned operations through
early 2005, our ability to complete clinical research and data
analysis, meeting our clinical studies' endpoints, risk of market
acceptance of our products, risk of technology and products
obsolescence, delays in development of products, reliance on partners,
competitive risks and those risks and uncertainties described in our
Form 10-Q for the quarter ended September 30, 2002, as filed on
November 7, 2002, and in 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.
Financial Highlights
(unaudited)
Balance sheet data December 31, December 31,
2002 2001
Cash, cash equivalents and marketable
securities $ 733,848 $ 3,922,736
Total current assets 836,988 4,102,154
Total assets $1,249,779 $4,393,126
Total current liabilities 1,116,017 831,487
Total liabilities 2,634,339 842,578
Total shareholders' equity (1,384,560) 3,550,548
Total liabilities and shareholders'
equity $1,249,779 $4,393,126
Twelve Twelve
Three Months Three Months Months Months
Ended Ended Ended Ended
Statement of December 31, December 31, December 31, December 31,
operations data 2002 2001 2002 2001
Sales $187,679 $19,019 $ 289,908 $ 202,942
Gross profit 187,636 13,732 289,424 154,268
Research and
development 578,352 635,955 3,082,484 2,686,621
Selling, general, and
administrative
expense 568,971 503,043 2,333,314 2,244,274
Total operating
expense 1,147,323 1,138,998 5,415,798 4,930,895
Loss from operations (959,687) (1,125,266) (5,126,374) (4,776,627)
Total other income and
expense (120,433) 24,631 (179,745) 253,921
Net loss $(1,080,120)$(1,100,635)$(5,306,119)$(4,522,706)
Basic and diluted loss
per share $ (0.05) $ (0.05) $ (0.24) $ (0.21)
Weighted average
common shares
outstanding 22,550,591 21,426,762 21,713,432 21,049,437
CONTACT: Interleukin Genetics, Inc.
Fenel M. Eloi, 781/398-0700