Exhibit 99.1
Interleukin Genetics Reports Fourth Quarter and Year-End Financial
Results
WALTHAM, Mass.--(BUSINESS WIRE)--March 26, 2004--Interleukin
Genetics, Inc. (OTCBB: ILGN), a leader in the development of risk
assessment products, today reported financial results for the year and
quarter ended December 31, 2003.
Key Milestones Achieved during 2003:
-- We signed a strategic alliance with Alticor and its affiliates
to develop and market novel nutritional and skincare products.
The major elements of the alliance, in which Alticor acquired
a majority interest in Interleukin Genetics, included an
equity investment, a multi-year research and development
agreement, a licensing agreement with royalties on marketed
products, a deferment and conversion feature of outstanding
loan repayment and a refinancing of bridge financing
obligations.
-- We were awarded two new patents. One for a discovery that
certain common variations in the Interleukin-1 (IL-1) genes
are associated with an increased risk of Osteoporosis and one
for a discovery that certain common variations in the IL-1
genes are associated with an increased risk of Cardiovascular
Disease.
"2003 was a rebuilding year for our company," said Dr. Philip R.
Reilly, MD, JD, the company's Chairman and CEO. "We have strengthened
our financial position but now must execute our plan to develop and
launch risk assessment products into identifiable new markets. We are
pleased to have a partner like Alticor working with us in the
implementation of our strategy."
Financial Results:
For the quarter, the Company reported a net loss of $791,000 or
$0.03 per basic and diluted share as compared to a net loss of
$1,080,000 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 $4,172,000 or $0.18 per basic and diluted share compared to a
loss of $5,306,000 or $0.24 per basic and diluted share last year.
Revenues for the quarter were $761,000 compared to $188,000 in the
fourth quarter of 2002. For the twelve months ended December 31, 2003,
the Company reported revenues of $2,056,000 compared to revenues of
$290,000 in 2002. The increase in revenue during the three and twelve
months periods was due entirely to research funding from our research
agreement signed with Alticor.
Cost of revenues was $732,000 and $1,625,000 for the fourth
quarter and year respectively. This compares with cost of revenue of
less than $1,000 for all of 2002. The increase in costs of revenue
during the 2003 periods was due entirely to costs associated with
performance on the research project with Alticor.
Research and development expenditures were $308,000 in the quarter
ended December 31, 2003 compared to $578,000 in the comparable period
in 2002. Research and development expenses for the year were
$2,031,000 compared to $3,082,000 last year. The decreases in R&D
expenses reflected a re-allocation of internal resources from
internally-funded projects to the research project funded by Alticor
and now reported as cost of revenue.
Selling, general and administrative expenses were $488,000 and
$2,266,000 for the three and twelve-month periods ended December 31,
2003 compared to $569,000 and $2,333,000 respectively during the same
periods last year.
As of December 31, 2003, the Company reported total assets of
$5,458,000, including $4,759,000 in cash and cash equivalents. The
Company also reported total liabilities of $3,901,000 and a net worth
of $1,558,000.
Subsequent to the year-end on March 15, 2004, the Company reported
that it had signed a Distribution Agreement with Access Business
Group, a subsidiary of Alticor that resulted in a milestone payment of
$2,000,000 to Interleukin by Alticor.
About Interleukin Genetics
Interleukin Genetics is a biotechnology company focused on
inflammation. The company uses functional genomics to help in the
development of risk assessment, nutritional and therapeutic products
based on the genetic variations in people to help prevent, ameliorate
or treat diseases involving inflammation. Interleukin's current
programs focus on 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 our ability to develop
diagnostic, personalized nutritional and therapeutic products to
prevent or treat diseases of inflammation, our ability to construct a
DNA testing laboratory, our ability to screen nutritional compounds
for their effects on inflammatory responses, given specific IL-1
genetic patterns, our ability to complete all of our key milestones
with regard to the Alticor program, our ability to make progress in
advancing our core technologies and our ability to launch new
commercial products by 2005. 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, our ability to screen nutritional compounds for their
effects on inflammatory responses, given specific IL-1 genetic
pattern, our ability to construct a DNA testing laboratory, our
ability to screen nutritional compounds for their effects on
inflammatory responses, given specific IL-1 genetic patterns, our
ability to complete all of our key milestones with regard to the
Alticor program, our ability to make progress in advancing our core
technologies and our ability to launch new commercial products by 2005
and those risks and uncertainties described in our Form 10-Q for the
three months ended September 30, 2003, as filed on November 12, 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 Dec. 31, Dec. 31,
2003 2002
Cash, cash
equivalents and
marketable
securities $4,759,453 $ 733,848
Total current assets 4,997,408 836,988
Total assets $5,458,442 $1,249,779
Total current
liabilities 1,288,104 1,116,017
Total liabilities 3,900,730 2,634,339
Total shareholders'
equity (deficit) 1,557,712 (1,384,560)
Total liabilities and
shareholders' equity $5,458,442 $1,249,779
Three Three Twelve Twelve
Months Months Months Months
Ended Ended Ended Ended
Statement of Dec. 31, Dec. 31, Dec. 31, Dec. 31,
operations data 2003 2002 2003 2002
--------------- -------- -------- -------- --------
Revenues $760,511 $187,679 $ 2,055,943 $ 289,908
Cost of Revenues 732,153 43 1,625,063 484
----------- ---------- ------------ -----------
Gross profit 28,358 187,636 430,880 289,424
Research and
development 308,028 578,352 2,030,704 3,082,484
Selling, general,
and administrative 487,882 568,971 2,265,971 2,333,314
----------- ---------- ------------ -----------
Total operating
expense 795,910 1,147,323 4,296,675 5,415,798
Loss from operations (767,553) (959,687) (3,865,795) (5,126,374)
Total other income
and expense (23,591) (120,433) (306,386) (179,745)
----------- ---------- ------------ -----------
Net loss $(791,144)$(1,080,120) $(4,172,181)$(5,306,119)
=========== =========== =========== ===========
Basic and diluted
loss per share $ (0.03) $ (0.05) $ (0.18) $ (0.24)
Weighted average
common shares
outstanding 23,253,964 22,550,591 23,193,195 21,713,432
CONTACT: Interleukin Genetics, Inc.
Fenel M. Eloi, 781-398-0700