Exhibit 99.1
Interleukin Genetics Reports Third Quarter Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)--Nov. 4, 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 per basic and diluted share, for
the quarter ended September 30, 2005.
Financial Results:
Revenue for the quarter was $6,000 compared to $8,000 in the same quarter
of 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
$3,000 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 $1.5 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. Revenue for the nine months ended
September 30, 2005 was $21,000 compared to $27,000 for the nine months ended
September 30, 2004. For the nine months ended September 30, 2005, the company
reported a net loss of $4.8 million or $0.20 per basic and diluted net loss
common share as compared to $5.6 million or $0.24 per basic and diluted net loss
common share for the same period last year.
Management noted that research and development expenses were $739,000 for
the quarter ended September 30, 2005 compared to $979,000 for the quarter ended
September 30, 2004. These expenses include research and development expenses
funded by Alticor and its affiliates under research and development agreements.
The decrease is primarily the result of the timing of clinical studies partially
offset by the company's hiring of its Chief Medical Officer in July 2005.
Research and development expenses were $2.0 million for the nine months ended
September 30, 2005 compared to $3.1 million for the same period in 2004. These
expenses include, as well, research and development expenses funded by Alticor
and its affiliates under research and development agreements. The decrease is
also the result of the timing of clinical studies and temporary reductions in
labor and overhead partially offset by the company's hiring of its Chief Medical
Officer in July 2005.
Management further noted that general and administrative expenses were
$650,000 for the three months ended September 30, 2005 compared to $623,000
during the same period last year. These expenses for 2005 include $51,000 of
expenses associated with compliance with Section 404 of the Sarbanes-Oxley Act
of 2002. General and administrative expenses were $2.4 million for the nine
months ended September 30, 2005 compared to $2.1 million during the same period
last year. These expenses for 2005 include $416,000 of expenses associated with
compliance with Section 404 of the Sarbanes-Oxley Act of 2002.
Other income (expense) was $125,000 expense for the three months ended
September 30, 2005 compared to $136,000 expense during the same period last year
and $388,000 expense for the nine months ended September 30, 2005 compared to
$410,000 expense during the same period last year. Other income (expense)
includes interest income, interest expense and the amortization of the note
discount.
As of September 30, 2005, the Company reported total assets of $5.8
million, including $4.3 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
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 for the year ended December 31, 2004 filed with the Securities and
Exchange Commission, as amended, 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: 09/30/2005 12/31/2004
- ------------------- ----------- -----------
(Unaudited) (Audited)
Cash and cash equivalents $ 4,293,260 $ 4,528,425
Total current assets 4,478,680 4,721,375
Total assets $ 5,849,154 $ 6,185,501
Total current liabilities $ 3,124,026 $ 1,445,303
Total liabilities 4,680,145 2,657,994
Total shareholders' equity 1,169,009 3,527,507
Total liabilities and shareholders' equity $ 5,849,154 $ 6,185,501
Statement of Operations data:
- ------------------------------
Three Months Ended Nine Months Ended
09/30/2005 09/30/2004 09/30/2005 09/30/2004
----------- ----------- ----------- -----------
(As Restated (As Restated
and and
(Unaudited) Unaudited) (Unaudited) Unaudited)
Revenue $ 5,690 $ 8,216 $ 20,743 $ 26,536
Gross profit 5,690 7,965 20,743 26,187
Research and
development 738,865 979,089 2,031,727 3,078,730
General and
administrative 649,764 623,130 2,417,406 2,087,930
----------- ----------- ----------- -----------
Total operating
expenses 1,388,629 1,602,219 4,449,133 5,166,660
----------- ----------- ----------- -----------
Loss from operations (1,382,939) (1,594,254) (4,428,390) (5,140,473)
Total other income
and expense (124,582) (135,582) (387,886) (410,399)
----------- ----------- ----------- -----------
Net loss $(1,507,521)$(1,729,836)$(4,816,276)$(5,550,872)
=========== =========== =========== ===========
Basic and diluted
loss per share $ (0.06)$ (0.07)$ (0.20)$ (0.24)
Weighted average
common shares
outstanding 23,689,490 23,530,154 23,649,365 23,451,930
CONTACT: For Interleukin Genetics:
John J. McCabe, 781-398-0700