Exhibit 99.1
Interleukin Genetics Reports Fourth Quarter and Year-End
Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)--March 16, 2005--Interleukin
Genetics, Inc. (OTCBB: ILGN) a leader in the development of
personalized health products, today reported revenue of $935,000 and a
net loss of $803,000 or $0.03 per basic and diluted share, for the
quarter ended December 31, 2004. For the year, the Company reported
revenue of $3.6 million and a net loss of $3.0 million or $0.13 per
basic and diluted share.
Financial Results:
Revenue for the quarter was $935,000 compared to $761,000 in the
same quarter of 2003. The increase is primarily the result of $182,000
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. At the present time, the company's primary
source of revenue is research contracts with Alticor. For the quarter,
the Company reported a net loss of $803,000, or $0.03 per basic and
diluted share, as compared to a net loss of $791,000, or $0.03 per
basic and diluted share, for the same period last year.
Revenue for the year was $3.6 million compared to $2.1 million in
2003. The increase is primarily the combination of a new weight
management research project with Alticor that began in June 2004 and
the full year impact of the research agreement with Alticor that began
in March 2003. For the year, the Company reported a net loss of $3.0
million, or $0.13 per basic and diluted share, as compared to a net
loss of $4.2 million, or $0.18 per basic and diluted share, for last
year.
Cost of revenue was $856,000 for the quarter ended December 31,
2004, compared to $732,000 for the same period in 2003. Cost of
revenue was $2.6 million for the year ended December 31, 2004,
compared to $1.6 million for 2003. The increase in cost of revenue in
both periods is a result of the reallocation of resources from
internal research and development to performing our obligations under
our research programs with Alticor.
Research and development expenses were $236,000 in the quarter
ended December 31, 2004 compared to $308,000 in the quarter ended
December 31, 2003. Research and development expenses were $1.2 million
for the year ended December 31, 2004 compared to $2.0 million in 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 resources are now reported as
cost of revenue rather than R&D expense.
General and administrative expenses were $628,000 for the quarter
ended December 31, 2004 compared to $488,000 during the same period
last year. General and administrative expenses were $2.7 million for
the year ended December 31, 2004 compared to $2.3 million during the
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 to build its clinical genetic testing laboratory.
As of December 31, 2004, the Company reported total assets of $6.4
million, including $4.5 million in cash and cash equivalents as
compared to total assets of $5.5 million including $4.8 million in
cash and cash equivalents as of December 31, 2003.
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
Balance sheet data December 31, December 31,
- ------------------ 2004 2003
Cash, cash equivalents and
marketable securities $4,528,425 $4,759,453
Total current assets 4,952,975 4,997,408
Total assets $6,417,101 $5,458,442
Total current liabilities $2,578,724 $1,288,104
Total liabilities 5,177,038 3,900,730
Total shareholders' equity 1,240,063 1,557,712
Total liabilities and shareholders'
equity $6,417,101 $5,458,442
Three Months Ended Year Ended
December 31, December 31,
Statement of
operations data 2004 2003 2004 2003
- ----------------- ----------- ----------- ------------ ------------
Revenue $935,114 $760,511 $3,644,100 $2,055,943
Cost of Revenue 856,014 732,153 2,631,847 1,625,063
Research and
development
expense 235,689 308,028 1,227,532 2,030,704
General, and
administrative
expense 627,992 487,883 2,727,325 2,265,971
----------- ----------- ------------ ------------
Total cost and
operating expenses 1,719,695 1,528,064 6,586,704 5,921,738
----------- ----------- ------------ ------------
Loss from
operations (784,581) (767,553) (2,942,604) (3,865,795)
Total other income
and expense (18,303) (23,591) (82,295) (306,386)
----------- ----------- ------------ ------------
Net loss $(802,884) $(791,144) $(3,024,899) $(4,172,181)
=========== =========== ============ ============
Basic and diluted
loss per share $(0.03) $(0.03) $(0.13) $(0.18)
Weighted average
common shares
outstanding 23,569,986 23,253,964 23,482,642 23,193,195
CONTACT: For Interleukin Genetics:
Fenel M. Eloi
(781) 398-0700