Exhibit 99.1
Interleukin Genetics Reports 2006 Year-End and Fourth Quarter Financial Results
Reports Significant Revenue Increase over Previous Year and Strong
Cash Position
Conference Call Scheduled for 4:30 PM EST - April 2, 2007
WALTHAM, Mass.--(BUSINESS WIRE)--April 2, 2007--Interleukin
Genetics, Inc. (AMEX: ILI) today reported financial results for its
year-end 2006 and fourth quarter ended December 31, 2006.
The Company reported revenues of $4.7 million and a net loss of
$6.9 million, or $(0.27) per basic and diluted common share, for the
year ended December 31, 2006 and revenues of $1.8 million and a net
loss of $2.6 million, or $(0.10) per basic and diluted common share,
for the quarter ended December 31, 2006. Interleukin Genetics'
reported revenues resulted from the processing of genetic assessment
tests launched in the first quarter of 2006 for cardiovascular health
risk and general nutrition, and from sales of nutritional supplement
products in food, drug, and mass retail outlets through its
subsidiary, the Alan James Group, since it was acquired in August of
2006.
"Interleukin Genetics ended 2006 in a very strong operational and
financial position. With a global distribution partner for our genetic
risk assessment tests and brand-name distribution channels for our
nutritional supplement products business, we believe that we are well
positioned to capitalize on the promising future of personalized
health," said Tim Richerson, Interleukin Genetics' CEO. "Importantly,
we have the financial resources to execute on this vision. Looking
forward in 2007, we will be concentrating our efforts on expanding the
marketing tools and markets for our current products while advancing
the research and development of additional products for our portfolio
of wellness products."
Operating highlights for 2006 included:
-- Interleukin Genetics began operations in its specially
designed and constructed genetic testing laboratory, certified
under the Clinical Laboratory Improvement Amendments (CLIA),
and processed first samples in February 2006.
-- The Company commenced sales in March 2006, through its global
distribution partner Alticor, of two new genetic risk
assessment tests for personal wellness - the IL-1 test for
cardiovascular health and the general nutrition test.
-- Interleukin Genetics acquired the Alan James Group in August
of 2006 to provide Interleukin with new products and sales and
marketing leadership in the rapidly expanding consumer health
segment.
-- Concurrent with the Alan James Group acquisition, the Company
secured $30.0 million in equity and debt financing through
Alticor.
-- The Company initiated a study with Catholic University Center
for High Technology Research and Education in Biomedical
Sciences in Campobasso, Italy to study the link between
inflammation genetic tests and stroke affecting men and women
at a young age. This study may support the development of new
genetic tests that provide important information about common
diseases.
-- The Company initiated a new study in China utilizing its
proprietary IL-1 technology to evaluate potential
population-specific genetic links to myocardial infarction at
an early age. The study has enrolled 1,100 patients to date
and expects to enroll approximately 1,300 subjects. A similar
study that is ongoing in Korea and is expected to meet its
enrollment target of 750 subjects in the second quarter.
-- The Company secured an exclusive license for weight management
technology from GeneOb as a component in the development of a
new genetic risk assessment test for weight management
intended for future release.
-- The Company entered into a one-year research agreement with
Alticor to develop its technology in dermagenomics to develop
personalized skin care products and to expand the development
of other tests.
Year End Results
Revenue for the year ended December 31, 2006, was $4.7 million
compared to $23,000 in 2005. The increase was due to revenues of $2.7
million from the personalized health segment, including $2.6 million
from processing of genetic tests which were launched in the first
quarter of 2006 (specifically cardiovascular health and general
nutrition genetic tests) and $2.1 million from the consumer products
segment which sells branded nutritional supplements to large retail
outlets through the Alan James Group since August 17, 2006 (the date
of Interleukin's acquisition of that business).
Research and development expenses were $3.3 million for the year
ended December 31, 2006, compared to $3.1 million for 2005.
Selling, general and administrative expenses were $4.5 million for
the year ended December 31, 2006, compared to $2.9 million during
2005. This increase was primarily attributable to costs associated
with the operation of the Alan James Group.
The Company reported a net loss of $6.9 million, or $(0.27) per
basic and diluted common share, for the year ended 2006 compared to a
net loss of $6.6 million, or $(0.28) per basic and diluted common
share in 2005.
Fourth Quarter Results
Revenue for the three months ended December 31, 2006, was $1.8
million compared to $2,000 for the same period in 2005. The increase
was due to revenues of $444,000 from its personalized health segment,
primarily from processing of genetic tests received from Alticor for
sales of the heart health and the general nutrition tests and $1.4
million from its consumer products segment which sells branded
nutritional supplements to large retail outlets through the Alan James
Group.
Research and development expenses were $842,000 for the quarter
ended December 31, 2006, compared to $959,000 for the quarter ended
December 31, 2005. These research expenses were largely incurred in
support of funded research for our collaboration with Alticor.
Selling, general and administrative expenses were $1.8 million for
the three months ended December 31, 2006, compared to $661,000 during
the same period in the prior year, an increase of approximately 173%.
This increase was primarily attributable to costs associated with the
operation of the Alan James Group.
The Company reported a net loss of $2.6 million, or $(0.10) per
basic and diluted common share, for the fourth quarter of 2006
compared to a net loss of $1.8 million, or $(0.07) per basic and
diluted common share, for the fourth quarter of 2005.
On December 31, 2006, the Company reported cash and cash
equivalents of $10.1 million compared to $3.4 million of cash and cash
equivalents on December 31, 2005. In addition, on December 31, 2006,
the Company had access to $17.9 million under credit facilities with
Alticor.
Conference Call Details
To access the live call on April 2, 2007, at 4:30 p.m. ET, dial
(800) 565-5442 (domestic) or (913) 312-1298 (international). The call
will also be available live via webcast at www.ilgenetics.com.
Replay access of the teleconference will be available for two
weeks following the call by calling (719) 457-0820 (domestic) or (888)
203-1112 (international). The passcode for the replay is 1471586. The
webcast will be archived following the call at www.ilgenetics.com.
About Interleukin
Interleukin Genetics, Inc. is a company focused on developing,
acquiring, and commercializing personalized health products that can
help individuals improve and maintain their health through preventive
measures. It uses functional genomics to help in the development of
risk assessment tests based on the genetic variations in people. The
Company also develops and markets nutritional and OTCeutical(R)
products. Interleukin has commercialized genetic tests for periodontal
disease risk assessment, cardiovascular risk assessment, and general
nutrition assessment. In addition, through its Alan James Group
subsidiary which it acquired in August 2006, Interleukin sells its
nutritional product brands, including Ginkoba(R), Ginsana(R), and
Venastat(R) through the nation's largest food, drug and mass
retailers. The Company's current development programs focus on
osteoporosis and weight management genetic risk assessment tests, as
well as its new proprietary OTCeuticals for distribution through Alan
James Group. The Company expects that these programs will also lead to
the personalized selection of nutritional products, and provide
consumers and healthcare professionals with better. 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, our ability to make progress in advancing
our core technologies, and our expectations regarding fiscal year 2007
revenues and gross profit margins of our nutritional supplement
products. 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, the risk
of market acceptance of our products, the risk of technology and
product obsolescence, delays in product development, the performance
of our commercial partners, the availability of adequate capital, the
actions of our competitors and other competitive risks, our ability to
integrate acquired businesses, our ability to maintain relationships
with our important customers, 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 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
December 31, 2006 December 31, 2005
Balance sheet data (Audited) (Audited)
- --------------------------------
Cash and cash equivalents $10,082,919 $3,415,174
Total current assets 12,991,113 3,589,656
Total assets $22,630,285 $4,970,075
Total current liabilities $7,388,353 $3,014,742
Total liabilities 8,844,354 4,686,330
Total shareholders' equity 13,785,931 283,745
Total liabilities and
shareholders' equity $22,630,285 $4,970,075
Three Months Ended Year Ended
Statement of December 31, December 31, December 31, December 31,
operations data 2006 2005 2006 2005
- ------------------ ------------ ------------ ------------ ------------
(Unaudited) (Audited)
------------------------- -------------------------
Revenue $1,837,164 $2,134 $4,731,026 $22,877
Gross profit 589,455 2,134 1,888,429 22,877
Research and
development
expenses 841,967 958,819 3,262,349 3,127,086
Selling, general
and
administrative
expenses 1,804,282 660,814 4,506,799 2,916,858
Amortization of
intangible assets 490,227 12,099 646,065 36,921
------------ ------------ ------------ ------------
Total operating
expenses 3,136,476 1,631,732 8,415,213 6,080,865
------------ ------------ ------------ ------------
Loss from
operations (2,547,021) (1,629,598) (6,526,784) (6,057,988)
Total other income
and expense (46,426) (124,950) (412,972) (512,836)
------------ ------------ ------------ ------------
Net loss before
income taxes (2,593,447) (1,754,548) (6,939,756) (6,570,824)
Provision for
income taxes (7,000) - (7,000) -
------------ ------------ ------------ ------------
Net loss $(2,600,447) $(1,754,548) $(6,946,756) $(6,570,824)
============ ============ ============ ============
Basic and diluted
loss per share $(0.10) $(0.07) $(0.27) $(0.28)
============ ============ ============ ============
Weighted average
common shares
outstanding 27,363,550 23,861,436 25,340,107 23,702,967
============ ============ ============ ============
CONTACT: For Interleukin Genetics:
Paul Voegelin, 781-398-0700