Exhibit 99.1
Interleukin Genetics Reports Third Quarter Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)--Nov. 3, 2004--Interleukin
Genetics, Inc. (OTCBB: ILGN) a leader in the development of
personalized health products, today reported revenue of $1,400,000 and
a net loss of $373,000 or $0.02 per basic and diluted share, for the
quarter ended September 30, 2004.
Financial Results:
Revenue for the quarter was $1,400,000 compared to $634,000 in the
same quarter of 2003. The increase is primarily the result of $690,000
of revenue from a new research project on weight management with
Alticor entered into in June 2004. 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 $373,000, or $0.02 per basic and diluted share, as
compared to a net loss of $767,000, or $0.03 per basic and diluted
share, for the same period last year.
Research and development expenditures were $256,000 in the quarter
ended September 30, 2004 compared to $374,000 in the comparable
quarterly period ended September 30, 2003. The decrease in R&D
expenses reflects a re-allocation of internal resources from
internally-funded projects to the research projects funded by Alticor.
Those reallocated costs are now reported as cost of revenue.
Selling, general and administrative expenses were $667,000 for the
quarter ended September 30, 2004 compared to $482,000 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 September 30, 2004, the Company reported total assets of
$7,164,000, including $5,507,000 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. The increase in cash
reflects the $2,000,000 milestone payment received from Alticor in
March 2004.
For the nine months ended September 30, 2004, the Company reported
revenue of $2,709,000 and a net loss of $2,222,000 or $0.09 per share
compared to revenue of $1,295,000 and a net loss of $3,381,000 or
$0.15 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
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 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
Sept. 30, Dec. 31,
Balance sheet data 2004 2003
- ------------------ (Unaudited) (Audited)
Cash, cash equivalents and marketable
securities $5,506,990 $4,759,453
Total current assets 6,003,379 4,997,408
Total assets $7,164,026 $5,458,442
Total current liabilities $2,587,514 $1,288,104
Total liabilities 5,188,754 3,900,730
Total shareholders' equity 1,975,272 1,557,712
Total liabilities and shareholders' equity $7,164,026 $5,458,442
Statement of Three Months Ended Nine Months Ended
operations September 30, September 30,
data 2004 2003 2004 2003
- --------------- ------------- ------------- ------------ -------------
(Unaudited)
Sales $1,400,066 $633,785 $2,708,986 $1,295,432
Gross profit 570,878 140,212 933,153 402,522
Research and
development 256,083 374,362 991,843 1,722,676
Selling,
general, and
administrative
expense 667,199 481,935 2,099,333 1,778,088
------------- ------------- ------------ -------------
Total operating
expenses 923,282 856,297 3,091,176 3,500,764
------------- ------------- ------------ -------------
Loss from
operations (352,404) (716,085) (2,158,023) (3,098,242)
Total other
income and
expense (20,113) (51,207) (63,992) (282,795)
------------- ------------- ------------ -------------
Net loss $(372,517) $(767,292) $(2,222,015) $(3,381,037)
============= ============= ============ =============
Basic and
diluted loss
per share $(0.02) $(0.03) $(0.09) $(0.15)
Weighted
average common
shares
outstanding 23,530,154 23,236,630 23,451,930 23,172,176
CONTACT: Interleukin Genetics
Fenel M. Eloi, 781-398-0700