Exhibit 99.1
Interleukin Genetics Reports First Quarter Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)--May 5, 2005--Interleukin
Genetics, Inc. (OTCBB:ILGN) a leader in the development of
personalized health products, today reported a net loss of $1.5
million or $0.06 basic and diluted per common share for the quarter
ended March 31, 2005.
Financial Results:
Revenue for the quarter was $7,000 compared to $8,000 in the same
quarter of 2004. For the current quarter, the Company reported a net
loss of $1.5 million or $0.06 basic and diluted net loss per common
share as compared to a net loss of $1.7 million or $0.07 basic and
diluted net loss per common share for the same period last year.
Research and development expenses were $684,000 in the quarter
ended March 31, 2005 compared to $825,000 in the quarter ended March
31, 2004. These expenses include research and development expenses
funded by Alticor under research and development agreements of
$402,000 for the three months ended March 31, 2005 compared to
$440,000 for the quarter ended March 31, 2004. Unfunded research and
development expenses were $282,000 for the three months ended March
31, 2005 compared to $385,000 for the quarter ended March 31, 2004.
The decrease is primarily the result of temporary reductions in labor
and overhead.
Selling, general and administrative expenses were essentially
constant at $704,000 for the three-months period ended March 31, 2005
compared to $725,000 during the same period last year.
Other income (expense) was essentially constant at ($134,000) for
the three-months period ended March 31, 2005 compared to ($140,000)
during the same period last year. Other income (expense) includes
interest income, interest expense and the amortization of the note
discount.
As of March 31, 2005, the Company reported total assets of $4.7
million, including $3.1 million of cash and cash equivalents as
compared to total assets of $6.2 million including $4.5 million of
cash and cash equivalents as of December 31, 2004. The cash balance at
March 31, 2005 does not include the $2.0 million advance payment
received from Alticor in April 2005 as a result of achieving a certain
milestone.
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: March 31, December 31,
2005 2004
(Unuaudited) (Audited)
------------------------
Cash and cash equivalents $3,093,944 $4,528,425
Total current assets 3,254,483 4,721,375
Total assets $4,676,030 $6,185,501
Total current liabilities $1,187,899 $1,445,303
Total liabilities 2,513,080 2,657,994
Total shareholders' equity 2,162,950 3,527,507
Total liabilities and shareholders' equity $4,676,030 $6,185,501
Statement of operations data: Three Months Three Months
Ended Ended
March 31, March 31,
2005 2004
(Unaudited) (As Restated
and
Unaudited)
------------------------
Revenue $7,359 $8,343
Research and development expenses 684,003 825,090
Selling, general and administrative expenses 703,939 724,678
------------------------
Total costs and operating expenses
1,387,942 1,549,768
------------------------
Loss from operations (1,380,583) (1,541,425)
Total other income and expense (134,381) (139,606)
------------------------
Net loss $(1,514,964)$(1,681,031)
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Basic and diluted net loss per common share
$ (0.06) $ (0.07)
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Weighted average common shares outstanding
23,604,882 23,323,069
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CONTACT: Interleukin Genetics
Fenel M. Eloi, 781-398-0700