Exhibit 99.1
Interleukin Genetics Reports Third Quarter Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)--Nov. 11, 2003--Interleukin
Genetics, Inc. (OTCBB: ILGN) a leader in the development of DNA
testing products to help identify risk for diseases in which
inflammation plays a key role today reported financial results for the
quarter ended September 30, 2003.
Third Quarter Financial Results:
Revenues for the quarter were $634,000 compared to $80,000 in the
third quarter of 2002. In 2003 the revenue included $625,000 in
research revenue and approximately $5,000 from test revenue.
Approximately $9,000 of the 2002 revenue was test revenue. The
increase in revenue was due to $625,000 in revenue from our research
agreement with an affiliate of Alticor.
Research and development expense decreased to $374,000 during the
three months ended September 30, 2003 from $717,000 for the same
quarter in 2002. This decrease was primarily the result of
reallocating resources from internally-funded research projects to the
research projects funded by Alticor whose costs are included in costs
of revenue and also a decrease in the number of external research
projects being funded by us. Selling, general and administrative
expenses decreased approximately 26% to $482,000 for the quarter from
$653,000 during the same period last year. This decrease was primarily
the result of higher legal expenses incurred in 2002 related to
financing activities in that year.
For the quarter, the company reported a net loss of $767,000 or
$.03 per basic and diluted share as compared to a net loss of
$1,364,000 or $.06 per basic and diluted share for the same period
last year.
As of September 30, 2003, the company reported cash and cash
equivalents of $5,071,000 as compared with $734,000 at December 31,
2002.
"We continue to be very excited about our strategic alliance with
Alticor." Stated Dr. Philip Reilly, Chief Executive Officer of the
company. "This alliance has provided us with a foothold in the
developing Personalized Nutrition market and has given us access to a
world-wide distribution network through which to sell our predictive
testing products."
For the nine months ended September 30, 2003, the Company reported
revenues of $1,295,000 and net loss of $3,381,000 or $0.15 per share
as compared to revenues of $102,000 and net loss of $4,226,000 or
$0.20 per share for the same period last year.
About Interleukin
Interleukin Genetics is a biotechnology company focused on
inflammation. The company uses functional genomics to help in the
development of 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. Interleukin expects that these programs will
produce products that 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 research revenues, royalties
and an equity milestone payments that we may receive, the availability
of credit facilities, the sufficiency of current and anticipated
resources to conduct planned operations into 2005, our ability to sell
our products through Alticor's world-wide distribution network, 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 $5 million in revenue from over the
24 month period ending March 2005, our ability to achieve the
milestone that would result in an additional $2.0 million equity
milestone 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-Q for the three
months ended June 30, 2003, as filed on August 11, 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 September 30, 2003 December 31, 2002
Cash , cash equivalents
and marketable securities $ 5,017,324 $ 733,848
Total current assets 5,157,143 836,988
Total assets $5,607,193 $1,249,779
Total current liabilities 658,279 1,116,017
Total liabilities 3,277,843 2,634,339
Total shareholders' equity 2,329,350 (1,384,560)
Total liabilities and
shareholders' equity $5,607,193 $1,249,779
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
Statement of September September September September
operations data 30, 2003 30, 2002 30, 2003 30, 2002
Sales $633,785 $79,677 $1,295,432 $102,229
Gross profit 140,212 79,571 402,522 101,788
Research and
development 374,362 716,964 1,722,676 2,504,132
Selling, general,
and administrative
expense 481,935 652,637 1,778,088 1,764,343
Total operating
expenses 856,297 1,369,601 3,500,764 4,268,475
Loss from operations (716,085) (1,290,030) (3,098,242) (4,166,687)
Total other income
(expense) (51,207) (73,497) (282,795) (59,312)
Net loss $(767,292) $(1,363,527) $(3,381,037 $(4,225,999)
Basic and diluted
loss per share $(0.03) $(0.06) $(0.15) $(0.20)
Weighted average
common shares
outstanding 23,236,630 21,436,231 23,172,176 21,431,558
CONTACT: Interleukin Genetics, Inc.
Fenel M. Eloi, 781-398-0700