Exhibit 99.1
Interleukin Genetics Reports Fourth Quarter and Year-End Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)--March 14, 2006--Interleukin
Genetics, Inc. (AMEX: ILI) today reported a net loss of $1.8 million
or $0.07 per basic and diluted common share for the quarter ended
December 31, 2005. For the year, the company reported a net loss of
$6.6 million or $0.28 per basic and diluted common share.
Financial Results:
Revenue for the quarter was $2,000 compared to $8,000 in the same
quarter of 2004 reflecting in both periods royalties on PST(R) sales
and in 2004 licensing revenue associated with one of the company's
patents. For the quarter, the company reported a net loss of $1.8
million or $0.07 per basic and diluted common share as compared to a
net loss of $1.7 million or $0.07 per basic and diluted common share
for the same period in the prior year. Revenue for the year ended
December 31, 2005 was $23,000 compared to $35,000 for the year ended
December 31, 2004. For the year ended December 31, 2005, the company
reported a net loss of $6.6 million or $0.28 per basic and diluted
common share as compared to a net loss of $7.2 million or $0.31 per
basic and diluted common share for the year ended December 31, 2004.
Management noted that research and development expenses were
$959,000 for the quarter ended December 31, 2005 compared to $1.0
million for the quarter ended December 31, 2004. These expenses
include research and development expenses funded by Alticor and its
affiliates under research and development agreements. Research and
development expenses were $3.1 million for the year ended December 31,
2005 compared to $4.1 million for 2004. These expenses include, as
well, research and development expenses funded by Alticor and its
affiliates under research and development agreements. The decrease is
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 $673,000 for the three months ended December 31, 2005 compared to
$570,000 during the same period in the prior year. General and
administrative expenses were $3.0 million for the year ended December
31, 2005 compared to $2.7 million for 2004. These expenses for 2005
include $462,000 of professional fees associated with compliance with
Section 404 of the Sarbanes-Oxley Act of 2002.
Other income (expense), net was $125,000 expense for the three
months ended December 31, 2005 compared to $134,000 expense during the
same period in the prior year and $513,000 expense for the year ended
December 31, 2005 compared to $544,000 expense for 2004. Other income
(expense), net includes interest income, interest expense and the
amortization of the note discount.
As of December 31, 2005, the company reported total assets of $5.0
million, including $3.4 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, 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: 12/31/2005 12/31/2004
- ------------------------------------------ ----------- -----------
(Audited) (Audited)
Cash and cash equivalents $ 3,415,174 $ 4,528,425
Total current assets 3,589,656 4,721,375
Total assets $ 4,970,075 $ 6,185,501
Total current liabilities $ 3,014,742 $ 1,445,303
Total liabilities 4,686,330 2,657,994
Total shareholders' equity 283,745 3,527,507
Total liabilities and shareholders' equity $ 4,970,075 $ 6,185,501
Statement of
Operations data: Three Months Ended Year Ended
- --------------------
12/31/2005 12/31/2004 12/31/2005 12/31/2004
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Audited) (Audited)
Revenue $ 2,134 $ 8,135 $ 22,877 $ 34,671
Gross profit 2,134 8,133 22,877 34,320
Research and
development 958,819 999,586 3,127,086 4,078,316
General and
administrative 672,913 570,107 2,953,779 2,658,037
----------- ----------- ----------- -----------
Total operating
expenses 1,631,732 1,569,693 6,080,865 6,736,353
----------- ----------- ----------- -----------
Loss from
operations (1,629,598) (1,561,560) (6,057,988) (6,702,033)
Total other income
and expense (124,950) (133,770) (512,836) (544,169)
----------- ----------- ----------- -----------
Net loss $(1,754,548) $(1,695,330)$(6,570,824)$(7,246,202)
=========== =========== =========== ===========
Basic and diluted
loss per share $ (0.07) $ (0.07)$ (0.28)$ (0.31)
Weighted average
common shares
outstanding 23,861,436 23,569,986 23,702,967 23,482,642
CONTACT: For Interleukin Genetics:
John J. McCabe, 781-398-0700