Exhibit 99.1
Interleukin Genetics Reports First Quarter Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)--May 13, 2003--Interleukin
Genetics, Inc. (OTCBB: ILGN) today reported financial results for the
quarter ended March 31, 2003. For the quarter, the Company reported a
net loss of $1,666,000 or $0.07 per basic and diluted share as
compared to a net loss of $1,451,000 or $0.07 per basic and diluted
share for the same period last year.
Revenues for the quarter were $29,000 compared to $9,000 in the
same quarter of 2002. This increase was primarily due to $17,000 in
revenue from a single customer for genotyping services to this
customer. The Company does not expect this revenue to be recurring.
Research and development expenditures were $872,000 in the quarter
ended March 31, 2003 compared to $928,000 in the comparable quarterly
period ended March 31, 2002. The decrease was primarily the result of
decreases in patent costs and market research expenses.
Selling, general and administrative expenses were $693,000 for the
three period ended March 31, 2003 compared to $542,000 during the same
period last year. The increase in selling, general and administration
costs were primarily the result of an increase in legal expenses
related to the negotiation of a strategic alliance with affiliates of
Alticor.
As of March 31, 2003, the Company reported total assets of
$7,046,000, including $6,514,000 in cash and cash equivalents. The
Company also reported total liabilities of $3,191,000 and
shareholders' equity of $3,855,000.
On March 5, 2003, 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 a certain milestone, 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 into 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. We believe 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
into 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 receive the $5.0 million in research and
development payments, 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 into 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-K for the year ended December 31, 2002, as filed on April 15,
2003, 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 March 31, December 31,
2003 2002
Cash, cash equivalents and marketable
securities $ 6,514,228 $ 733,848
Total current assets 6,649,588 836,988
Total assets $7,046,315 $1,249,779
Total current liabilities 1,176,558 1,116,017
Total liabilities 3,191,209 2,634,339
Total shareholders' equity 3,855,106 (1,384,560)
Total liabilities and shareholders' equity $7,046,315 $1,249,779
Three Months Three Months
Ended Ended
Statement of operations data March 31, March 31,
2003 2002
Sales $28,738 $9,012
Gross profit 11,856 8,862
Research and development 872,439 928,016
Selling, general, and administrative expense 692,712 542,466
Total operating expense 1,565,151 1,470,482
Loss from operations (1,553,295) (1,461,620)
Total other income and expense (112,314) 10,446
Net loss $(1,665,609)$(1,451,174)
Basic and diluted loss per share $(0.07) $(0.07)
Weighted average common shares outstanding 23,118,293 21,428,357
CONTACT: Interleukin Genetics
Fenel M. Eloi, 781/398-0700