Exhibit 99.1
Interleukin Genetics Reports Second Quarter Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)--Aug. 10, 2004--Interleukin Genetics, Inc.
(OTCBB: ILGN) a leader in the development of personalized health products, today
reported revenue of $664,000 and a net loss of $921,000 or $0.04 per basic and
diluted share, for the quarter ended June 30, 2004.
Key Milestone Achieved During Second Quarter of 2004:
In June 2004, the Company signed a Research Agreement with Access Business
Group LLC (ABG), a subsidiary of Alticor Inc., to conduct research into the
development of a test to identify individuals with specific genetic variations
that affect how people gain and maintain weight. The agreement also includes
provisions to assist ABG in the development of nutritional products to help
manage weight in those individuals who are overweight but not obese, that is,
with a Body Mass Index (BMI) greater than 25 but less than 30. With the
execution of this agreement, Interleukin is eligible to receive up to $1.9
Million in additional research funding over a period of one year beginning on
July 1, 2004. The first phase of the agreement is a "proof of concept" with a
performance milestone that determines the continuance of the project.
Financial Results:
Revenue for the quarter was $664,000 compared to $633,000 in the same
quarter of 2003. Both periods include $625,000 in research funding related to
the research agreement with Alticor entered into in March 2003. For the quarter,
the Company reported a net loss of $921,000, or $0.04 per basic and diluted
share, as compared to a net loss of $948,000, or $0.04 per basic and diluted
share, for the same period last year.
Research and development expenditures were $355,000 in the quarter ended
June 30, 2004 compared to $476,000 in the comparable quarterly period ended June
30, 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. Those reallocated costs are now reported as cost of revenue.
Selling, general and administrative expenses were $749,000 for the quarter
ended June 30, 2004 compared to $603,000 during the same period last year. The
increase is primarily the result of the Company adding the appropriate
infrastructure in its efforts to develop other markets for its products and
building a CLIA laboratory.
As of June 30, 2004, the Company reported total assets of $6,863,000,
including $5,473,000 in cash and cash equivalents as compared to total assets of
$5,458,000 including $4,759,000 in cash and cash equivalents as of December 31,
2003. Cash and cash equivalents as of March 31, 2004 were $6,495,000. The
increase in cash from December 31, 2003 reflects the $2,000,000 milestone
payment received from Alticor in March 2004.
For the six months ended June 30, 2004, the Company reported revenue of
$1,309,000 and a net loss of $1,849,000 or $0.08 per share compared to revenue
of $662,000 and a net loss of $2,614,000 or $0.11 per share for the same period
last year.
About Interleukin
Interleukin Genetics is a biotechnology company focused on developing
personalized health products. The company uses functional genomics to help in
the development of risk assessment tests, pharmacogenetic tests, nutritional and
therapeutic products based on the genetic variations in people. Interleukin's
current programs focus on cardiovascular disease, osteoporosis, rheumatoid
arthritis, endometriosis, periodontal disease and weight management. Interleukin
expects that these programs will lead to products that will help consumers
assess their risk for disease, personalize their 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 and other genetic variations, our ability to screen nutritional
compounds for their effects on inflammatory responses and other genetic
variations, given specific genetic patterns and our ability to make progress in
advancing our core technologies. 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 other genetic variations, our ability to
screen nutritional compounds for their effects on inflammatory responses and
other genetic variations, given specific genetic patterns, our ability to
construct a DNA testing laboratory, our ability to complete all of our key
milestones with regard to Alticor programs, our ability to make progress in
advancing our core technologies and our ability to launch new commercial
products 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
June 30, December 31,
Balance sheet data 2004 2003
- ------------------------------------------
(Unaudited) (Audited)
Cash, cash equivalents and marketable
securities $ 5,472,718 $ 4,759,453
Total current assets 6,273,135 4,997,408
Total assets $6,862,927 $5,458,442
Total current liabilities $1,966,177 $1,288,104
Total liabilities 4,570,289 3,900,730
Total shareholders' equity 2,292,638 1,557,712
Total liabilities and shareholders' equity $6,862,927 $5,458,442
Three Months Ended Six Months Ended
Statement of June 30, June 30, June 30, June 30,
operations data 2004 2003 2004 2003
- ------------------ ------------ ------------ ------------ ------------
(Unaudited)
Sales $663,977 $632,909 $1,308,920 $661,647
Gross profit 202,462 250,454 362,275 262,310
Research and
development 354,500 475,875 735,760 1,348,314
Selling, general,
and
administrative
expense 748,756 603,441 1,432,132 1,296,153
------------ ------------ ------------ ------------
Total operating
expenses 1,103,256 1,079,316 2,167,894 2,644,467
------------ ------------ ------------ ------------
Loss from
operations (900,794) (828,862) (1,805,619) (2,382,157)
Total other income
and expense (19,742) (119,274) (43,879) (231,588)
------------ ------------ ------------ ------------
Net loss $(920,536) $(948,136) $(1,849,498) $(2,613,745)
============ ============ ============ ============
Basic and diluted
loss per share $(0.04) $(0.04) $(0.08) $(0.11)
Weighted average
common shares
outstanding 23,501,709 23,161,926 23,412,390 23,140,230
CONTACT: Interleukin Genetics
Fenel M. Eloi, 781-398-0700