Exhibit 99.1
Interleukin Genetics Reports First Quarter Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)--May 14, 2004--Interleukin
Genetics, Inc. (OTCBB: ILGN) a leader in the development of
personalized health products, today reported revenues of $645,000 and
net loss of $929,000 or $0.04 per basic and diluted share for the
quarter ended March 31, 2004.
Key Milestones Achieved During First Quarter of 2004:
In February 2004, the Company signed a Distribution agreement with
Access Business Group International LLC, a subsidiary of Alticor Inc.,
for a firm minimum order of DNA-based risk assessment tests to be
delivered in the first year of product launch. This minimum order,
together with other financial performance criteria, triggered a
milestone payment of $2,000,000 to the Company from Alticor.
Financial Results:
Revenues for the quarter were $645,000 compared to $29,000 in the
same quarter of 2003. This increase was due entirely to $637,000 in
research funding related to the research agreement with Alticor. For
the quarter, the Company reported a net loss of $929,000 or $0.04 per
basic and diluted share as compared to a net loss of $1,666,000 or
$0.07 per basic and diluted share for the same period last year.
"We expect 2004 to be a year during which we will make great
strides in transforming Interleukin from a research and development
company into an operating company," stated Dr. Philip R. Reilly, the
company's Chairman and CEO. "During this year, we expect to: 1)
advance the development of personalized nutritional products with
Alticor, 2) build a clinical laboratory to process the tests
associated with these personalized nutritional products, 3) continue
the development of additional DNA-based personalized products and 4)
continue the development of our science, both as part of our own
commercial strategy and in conjunction with Alticor."
Research and development expenditures were $381,000 in the quarter
ended March 31, 2004 compared to $872,000 in the quarter ended March
31, 2003. The decrease in R&D expenses reflects a re-allocation of
internal resources from internally-funded projects to the research
project funded by Alticor and which are now reported as cost of
revenues.
Selling, general and administrative expenses were essentially
constant at $683,000 for the quarter ended March 31, 2004 compared to
$693,000 during the same quarter last year.
As of March 31, 2004, the Company reported total assets of
$7,073,000, including $6,495,000 in cash and cash equivalents as
compared to total assets of $5,548,000 including $4,759,000 in cash
and cash equivalents as of December 31, 2003. The increase in cash
reflects the $2,000,000 milestone payment received from Alticor in
March 2004.
About Interleukin
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 risk
assessment, nutritional and therapeutic products based on the genetic
variations in people to help prevent, ameliorate or treat diseases of
inflammation, our ability to product products that will personalize
the selection of nutritional and therapeutic products to enable the
managed care industry to improve patient care and better allocate
resources, our ability to construct a DNA testing infrastructure, our
ability to screen nutritional compounds for their effects on
inflammatory responses, given specific IL-1 genetic patterns, our
ability to develop new DNA-based tests, our ability to make progress
in advancing our science 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 risk assessment, nutritional and
therapeutic products based on the genetic variations in people to help
prevent ameliorate or treat diseases of inflammation, our ability to
product products that will personalize the selection of nutritional
and therapeutic products to enable the managed care industry to
improve patient care and better allocate resources our ability to
construct a DNA testing infrastructure, our ability to screen
nutritional compounds for their effects on inflammatory responses,
given specific IL-1 genetic patterns, our ability to make progress in
advancing our science and our ability to launch new commercial
products by 2005 and those risks and uncertainties described in our
annual report on Form 10-K, our quarterly reports on Form 10-Q 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,
2004 2003
Cash, cash equivalents and marketable
securities $ 6,494,815 $ 4,759,453
Total current assets 6,590,398 4,997,408
Total assets $7,073,371 $5,458,442
Total current liabilities 1,341,918 1,288,104
Total liabilities 3,948,852 3,900,730
Total shareholders' equity 3,124,519 1,557,712
Total liabilities and shareholders' equity $7,073,371 $5,548,442
Three Months Three Months
Ended Ended
March 31, March 31,
Statement of operations data 2004 2003
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Sales $644,943 $28,738
Gross profit 159,813 11,856
Research and development 381,260 872,439
Selling, general, and administrative expense
683,161 692,712
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Total operating expense 1,064,421 1,565,151
Loss from operations (904,608) (1,553,295)
Total other income and expense (24,354) (112,314)
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Net loss $(928,962) $(1,665,609)
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Basic and diluted loss per share $(0.04) $(0.07)
Weighted average common shares outstanding 23,323,069 23,118,293
CONTACT: For Interleukin Genetics:
Interleukin Genetics, Inc.
Fenel M. Eloi, 781-398-0700