Exhibit 99.1
Interleukin Genetics Reports Second Quarter Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)--Aug. 3, 2005--Interleukin Genetics, Inc.
(OTCBB: ILGN) a leader in the development of personalized health products, today
reported a net loss of $1.8 million or $0.08 basic and diluted net loss per
common share, for the quarter ended June 30, 2005.
Financial Results:
Revenue for the quarter was $8,000 compared to $10,000 for the same quarter
in 2004 reflecting in both periods royalties on PST(R) sales and licensing
revenue associated with one of the Company's patents. In addition, 2005 includes
$1,000 of revenue from tests processed in the Company's commercial laboratory
for external research laboratories. For the quarter, the Company reported a net
loss of $1.8 million or $0.08 basic and diluted net loss per common share as
compared to a net loss of $2.1million or $0.09 basic and diluted net loss per
common share for the same period last year. Revenue for the six months ended
June 30, 2005 was $15,000 compared to $18,000 for the six months ended June 30,
2004. For the six months ended June 30, 2005, the Company reported a net loss of
$3.3 million or $0.14 basic and diluted net loss per common share as compared to
$3.8 million or $0.16 basic and diluted net loss per common share for the same
period last year.
Management noted that research and development expenses were $609,000 for
the quarter ended June 30, 2005 compared to $1.3 million for the quarter ended
June 30, 2004. These expenses include research and development expenses funded
by Alticor under research and development agreements. The decrease is primarily
the result of timing of clinical studies and temporary reductions in labor and
overhead. Research and development expenses were $1.3 million for the six months
ended June 30, 2005 compared to $2.1 million for the same period in 2004. These
expenses include, as well, research and development expenses funded by Alticor
under various research and development agreements. The decrease is also the
result of timing of clinical studies and temporary reductions in labor and
overhead.
Management further noted that general and administrative expenses were $1.1
million for the three months ended June 30, 2005 compared to $740,000 during the
same period last year. These expenses for 2005 include $310,000 of expenses
associated with Sarbanes-Oxley Act of 2002 Section 404 compliance costs. General
and administrative expenses were $1.8 million for the six months ended June 30,
2005 compared to $1.5 million for the same period last year. These expenses for
2005 include $365,000 of expenses associated with Sarbanes-Oxley Act of 2002
Section 404 compliance costs.
Other income (expense) was essentially constant at $129,000 expense for the
three months ended June 30, 2005 compared to $135,000 expense during the same
period last year and $263,000 expense for the six months ended June 30, 2005
compared to $275,000 expense during the same period last year. Other income
(expense) includes interest income, interest expense and the amortization of the
note discount.
As of June 30, 2005, the Company reported total assets of $6.5 million,
including $4.9 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.
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
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 for the year ended December 31, 2004 filed with the
Securities and Exchange Commission on April 26, 2005, 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 2005 2004
- -----------------------------------
(Unaudited) (Audited)
Cash and cash equivalents $ 4,897,222 $ 4,528,425
Total current assets 5,071,607 4,721,375
Total assets $ 6,466,234 $ 6,185,501
Total current liabilities $ 3,346,253 $ 1,445,303
Total liabilities 4,786,903 2,657,994
Total shareholders' equity 1,679,331 3,527,507
Total liabilities and shareholders'
equity $ 6, 466,234 $ 6,185,501
Three Months Ended Six Months Ended
Statement of June 30, June 30, June 30, June 30,
operations data 2005 2004 2005 2004
- ------------------------------- ------------ ------------ ------------
(As Restated (As Restated
and and
(Unaudited) Unaudited) (Unaudited) Unaudited)
Revenue $ 7,694 $ 9,977 $ 15,053 $ 18,320
Gross profit 7,694 9,934 15,053 18,222
Research and
development
expenses 608,859 1,274,606 1,292,862 2,099,641
General and
administrative
expenses 1,063,703 740,122 1,767,642 1,464,800
----------- ----------- ----------- -----------
Total operating
expenses 1,672,562 2,014,728 3,060,504 3,564,441
----------- ----------- ----------- -----------
Loss from
operations (1,664,868) (2,004,794) (3,045,451) (3,546,219)
Total other income
and expense (128,923) (135,211) (263,304) (274,817)
----------- ----------- ----------- -----------
Net loss $(1,793,791) $(2,140,005) $(3,308,755) $(3,821,036)
=========== =========== =========== ===========
Basic and diluted
net loss per
common share $ (0.08) $ (0.09) $ (0.14) $ (0.16)
Weighted average
common shares
outstanding 23,653,280 23,501,709 23,629,082 23,412,390
CONTACT: Interleukin Genetics
Fenel M. Eloi, 781-398-0700