Exhibit 99.1
Interleukin Genetics Reports First Quarter Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)--May 9, 2006--
- Commercial Launch of New Genetic Tests Begins -
Interleukin Genetics, Inc. (AMEX: ILI) today reported financial
results for the quarter ended March 31, 2006. The company generated
revenue of $232,000 and a net loss of $1.6 million or $0.07 per basic
and diluted common share for the quarter. Interleukin Genetics'
reported revenues resulted almost entirely from the processing of
genetic tests for cardiovascular health and general nutrition.
"Interleukin Genetics has made the successful transition to
commercial operations in the first quarter through the introduction of
two new genetic assessment tests," said Ken Kornman, Interleukin
Genetics' CEO. "Our objective is to now build on this key operational
milestone by focusing our attention on expanding our genetic testing
services and business development initiatives, as well as our
development pipeline. In addition, we are committed to increasing the
scope of applications utilizing the Company's intellectual property,
and we look forward to reporting on our progress going forward."
Operating Highlights for the quarter ended March 31, 2006:
-- The Company commenced sales of two new genetic tests for
personal wellness assessment - the interleukin-1 test for
cardiovascular health and the general nutrition test.
-- Interleukin Genetics began operations in its specially
designed and constructed genetic testing laboratory. The
laboratory is registered under CLIA, the Clinical Laboratory
Improvements Amendments, with the Division of the Centers for
Medicare and Medicaid Services that regulates laboratory
testing in the United States. Samples were first processed in
February, 2006.
-- The Company initiated a new study in China utilizing its
proprietary interleukin-1 technology to evaluate potential
population-specific genetic links to myocardial infarction at
an early age and expects to enroll approximately 1,300
subjects. A similar study that is ongoing in Korea will enroll
approximately 750 subjects.
-- Interleukin Genetics announced executive management changes as
it focuses on executing its commercial strategy and expanding
development programs. Ken Kornman, the company's founder and
Chief Scientific Officer, assumed the additional role of CEO,
replacing Phil Reilly who will remain Chairman of the Board of
Directors. Gregg Mayer joined the company as Chief Business
Officer and is driving business operations and strategy.
Interleukin Genetics is actively seeking new opportunities and
strategic alliances that capitalize on its proprietary
interleukin-1 technology for the development of genetic tests
and therapeutic products.
Financial Results:
Revenue for the three months ended March 31, 2006 was $232,000
compared to $7,000 in the same period of 2005. The increase was
largely due to the amounts received for processing the cardiovascular
health and general nutrition genetic tests that are sold by the
company's strategic partner, Alticor. Cost of revenue, which includes
fixed overhead costs associated with laboratory operations, was
$198,000 for the three months ended March 31, 2006, resulting in a
gross profit of $34,000. For fiscal year 2006, the company is
currently projecting a gross profit margin of 40-45% from these
genetic tests.
Research and development expenses were $729,000 for the quarter
ended March 31, 2006 compared to $684,000 for the quarter ended March
31, 2005, an increase of approximately 7%. These expenses include
research and development expenses funded by Alticor under research and
development agreements for the development of new tests. This increase
was the result of new accounting rules that required the recording of
stock-based compensation of approximately $74,000.
General and administrative expenses were $765,000 for the three
months ended March 31, 2006 compared to $704,000 during the same
period in the prior year, an increase of approximately 9%. This
increase was the result of new accounting rules that required the
recording of stock-based compensation of approximately $69,000.
The company reported a net loss of $1.6 million, or $0.07 per
basic and diluted common share, in the first quarter of 2006 compared
to a net loss of $1.5 million, or $0.06 per basic and diluted common
share, in the first quarter of 2005.
On March 31, 2006, the company reported cash and cash equivalents
of $2.9 million compared to $3.4 million of cash and cash equivalents
on December 31, 2005.
About Interleukin
Interleukin Genetics is a biotechnology company focused on
developing and commercializing personalized health products. The
company uses its proprietary technology to help in the development of
risk assessment tests, pharmacogenetic tests, nutritional and
therapeutic products based on the genetic variations in people.
Interleukin Genetics has commercialized genetic tests for periodontal
disease risk assessment, cardiovascular risk assessment and general
nutrition assessment, and its current development programs focus on
osteoporosis and weight management. Interleukin expects that these
programs will also 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, 2005 filed with the Securities and Exchange Commission,
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: 03/31/2006 12/31/2005
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(Unaudited) (Audited)
Cash and cash equivalents $2,896,248 $3,415,174
Total current assets 3,139,154 3,589,656
Total assets $4,513,282 $4,970,075
Total current liabilities $1,400,249 $3,014,742
Total liabilities 3,187,305 4,686,330
Total shareholders' equity 1,325,977 283,745
Total liabilities and shareholders' equity $4,513,282 $4,970,075
Statement of Operations data: Three Months Ended
- --------------------------------------
03/31/2006 03/31/2005
--------------------------------
(Unaudited) (Unaudited)
Revenue $232,234 $7,359
Gross profit 34,582 7,359
Research and development 729,095 684,003
General and administrative 765,111 703,939
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Total operating expenses 1,494,206 1,387,942
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Loss from operations (1,459,624) (1,380,583)
Total other income and expense (129,854) (134,381)
------------ ------------
Net loss $(1,589,478) $(1,514,964)
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Basic and diluted loss per share $(0.07) $(0.06)
Weighted average common shares outstanding 24,019,004 23,604,882
CONTACT: For Interleukin Genetics:
Janet Perry, 781-398-0700