EX-99.1 2 a09-7321_1ex99d1.htm EX-99.1

Exhibit 99.1

 

INTERLEUKIN GENETICS REPORTS FOURTH QUARTER AND YEAR END 2008 FINANCIAL RESULTS

 

WALTHAM, MA — MARCH 9, 2009 - Interleukin Genetics, Inc. (NYSE: Alternext US: ILI) today announced financial and operational results for the fourth quarter and year ended December 31, 2008.

 

“In 2008, we put an experienced staff in place to establish the Company as a market leader in personalized healthcare and focus our business strategy on increasing revenue from our intellectual property,” said Lewis H. Bender, Chief Executive Officer.  “During the past year, we achieved milestones in several critical areas that support our longer term goals of increasing genetic test and consumer product sales, as well as forming new partnerships.”

 

2008 and Recent Highlights

 

·                  Presented Important New Osteoarthritis Data. Interleukin Genetics, Inc. Chief Scientific Officer Kenneth Kornman presented research findings on the genetics of osteoarthritis at the Osteoarthritis Research Society International (OARSI). The research highlighted the clinical utility of an osteoarthritis genetic test for both guiding the medical management of high risk patients and future use and development of related therapies.

·                  Expanded Distribution Networks. Interleukin Genetics, Inc. and Alticor, Inc. reached an agreement on its intellectual property that permits the expansion of Interleukin Genetics’ distribution network for certain genetic tests.

·                  Established Important New Clinical Partnerships. Interleukin Genetics, Inc. partnered both with Geisinger clinic in 2008 to analyze DNA samples from over 800 morbidly obese patients in effort to develop a genetic test for bariatric surgery candidates, as well as with Oral DNA to sell our PST® test.

·                  Awarded for Industry Research. Interleukin Genetics, Inc. received the 12th John M. Kinney Award for Nutrition and Metabolism at the annual Congress of the European Society of Parenteral and Enteral Nutrition.  The award was given for the paper, “Interleukin-1 genotype-selective inhibition of inflammatory mediators by a botanical: a nutrigenetics proof of concept,” which was published in Nutrition: The International Journal of Applied and Basic Nutritional Sciences.

·                  Enhanced Company Leadership. Throughout 2008, Interleukin Genetics, Inc. enhanced its management team with the addition of a new chief financial officer, vice president of marketing, senior business development executive, and staffed other critical positions in research and development, public relations, human resources, laboratory management and computer and information technology.

 

The Company reported revenues of $10.0 million and a net loss of $6.7 million, or $(0.21) per basic and diluted common share, for the year ended December 31, 2008, compared to revenues in 2007 of $9.7 million and a net loss of $6.2 million, or $(0.22) per basic and diluted common share. The revenue increase is primarily attributable to

 



 

growth in consumer product revenue in combination with increased royalty and contract research revenue offset by a slight decrease in genetic testing revenue.

 

Research and development expenses were $3.6 million for the year ended December 31, 2008 compared to $2.9 million for the year ended December 31, 2007. The increase is attributable to expenses relating to the Company’s sponsored research agreement with Yonsei University, as well as additional expenses relating to our patent portfolio.

 

Selling, general and administrative expenses were $7.0 million for the year ended December 31, 2008 compared to $6.4 million for the prior year. The increase is primarily attributable to increased promotional and advertising expenses as well as increased expenses due to additional headcount.

 

Fourth Quarter Results

 

Revenue for the three months ended December 31, 2008, was $2.7 million compared to $2.3 million for the same period in 2007. The increase is primarily due to increased research revenue and an increase in royalty revenue offset by a decrease in genetic testing revenue compared to the same period last year.

 

Research and development expenses were $1.1 million for the quarter ended December 31, 2008, compared to $682,000 for the same period in 2007.  The increase was primarily due to expenses relating to our expanded research programs in the areas of osteoarthritis, obesity, sports medicine and osteoporosis.

 

Selling, general and administrative expenses were $1.6 million for the three months ended December 31, 2008, compared to $1.5 million for the quarter ended December 31, 2007. The increase is primarily due to increased promotional and advertising expenses across both segments of the Company’s business as well as increased expenses due to additional headcount.

 

The Company reported a net loss of $1.5 million, or $(0.05) per basic and diluted common share, for the fourth quarter of 2008, which was consistent with the same period in the prior year. On December 31, 2008, the Company reported cash and cash equivalents of $5.0 million compared to $7.6 million of cash and cash equivalents on December 31, 2007. In addition, the Company has access to $10.3 million under credit facilities with Alticor now extended through March 2010.

 

“We see an exciting and evolving market opportunity for the services and technology Interleukin Genetics can offer. We believe the needs of pharmaceutical and biotechnology companies to boost innovation and development success will enhance the market for molecular diagnostic tools,” continued Mr. Bender. “As such, we will continue our focus for 2009 on developing genetic tests for chronic diseases that can provide meaningful value for drug developers, while further exploring exciting areas of new research that resonate with consumers.”

 



 

Conference Call and Webcast Information

 

Interleukin Genetics, Inc. will host a live conference call and webcast today at 4:30 p.m. EDT. To access the live call, dial 877-795-3646 (domestic) or 719-325-4833 (international). The live webcast will be available at the Investors section of the Company’s website, www.ilgenetics.com.

 

The webcast will be archived following the call at www.ilgenetics.com.

 

About Interleukin Genetics

 

Interleukin Genetics, Inc. (NYSE: Alternext US: ILI), is a genetics-focused personalized health company that develops preventive consumer products and genetic tests for sale to the emerging personalized health market.  Focused on the future of health and medicine, Interleukin Genetics uses its leading genetics research and scientific capabilities to develop and test innovative preventive and therapeutic products.  Interleukin Genetics is headquartered in Waltham, MA.  For more information about Interleukin Genetics, its products and 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, 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, and those risks and uncertainties described in our annual reports on Form 10-K, our quarterly reports on Form 10-Q and other documents we file with, or furnish to, the Securities and Exchange Commission. We disclaim any obligation or intention to update these forward-looking statements.

 



 

INTERLEUKIN GENETICS, INC. AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

 

 

 

31-Dec

 

31-Dec

 

 

 

 

 

Balance Sheet Data :

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,952,481

 

$

7,646,468

 

 

 

 

 

Total current assets

 

6,866,284

 

10,012,508

 

 

 

 

 

Total assets

 

$

12,154,388

 

$

16,385,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

$

3,666,961

 

$

6,162,535

 

 

 

 

 

Total liabilities

 

7,671,961

 

6,193,535

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

4,482,427

 

10,192,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

12,154,388

 

$

16,385,949

 

 

 

 

 

 

 

 

Three Months Ended Dec 31,

 

Twelve Months Ended Dec 31,

 

Statement of Operations Data:

 

2008

 

2007

 

2008

 

2007

 

Revenue:

 

 

 

 

 

 

 

 

 

Genetic testing service revenue

 

$

113,925

 

$

130,328

 

$

409,452

 

$

779,238

 

Net consumer products sales

 

1,801,026

 

1,699,654

 

7,394,293

 

6,873,209

 

Contract research revenue

 

680,389

 

469,825

 

2,061,149

 

2,028,031

 

Other

 

117,288

 

11,656

 

150,086

 

20,015

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

2,712,628

 

2,311,463

 

10,014,980

 

9,700,493

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

Cost of genetic testing services

 

261,205

 

254,679

 

940,241

 

975,769

 

Cost of consumer products sold

 

834,001

 

841,605

 

3,797,677

 

3,723,677

 

Research and development

 

1,104,772

 

681,909

 

3,560,002

 

2,928,249

 

Selling, general and administrative

 

1,583,229

 

1,546,941

 

7,034,368

 

6,367,973

 

Amortization of intangibles

 

338,770

 

415,170

 

1,335,438

 

1,651,244

 

 

 

 

 

 

 

 

 

 

 

Total operating costs and expenses

 

4,121,977

 

3,740,304

 

16,667,726

 

15,646,912

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(1,409,349

)

(1,428,841

)

(6,652,746

)

(5,946,419

)

 

 

 

 

 

 

 

 

 

 

Total other income and expense, net

 

(22,138

)

(68,186

)

27,463

 

(256,866

)

 

 

 

 

 

 

 

 

 

 

Net loss before income taxes

 

(1,431,487

)

(1,497,027

)

(6,625,283

)

(6,203,285

)

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

(36,602

)

(3,500

)

(26,102

)

(15,500

)

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(1,468,089

)

$

(1,500,527

)

$

(6,651,385

)

$

(6,218,785

)

 

 

 

 

 

 

 

 

 

 

Net loss per basic and diluted common share

 

$

(0.05

)

$

(0.05

)

$

(0.21

)

$

(0.22

)

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

31,799,314

 

28,159,412

 

31,354,198

 

27,723,754

 

 

#  #  #

 

Contacts:

Media:

Investor Relations:

Erin Walsh

Melanie Friedman

Interleukin Genetics

Stern Investor Relations

781-419-4707

212-362-1200

ewalsh@ilgenetics.com

melanie@sternir.com