EX-99.1 2 a4756878ex991.txt EXHIBIT 99.1 Exhibit 99.1 Interleukin Genetics Reports Third Quarter Financial Results WALTHAM, Mass.--(BUSINESS WIRE)--Nov. 3, 2004--Interleukin Genetics, Inc. (OTCBB: ILGN) a leader in the development of personalized health products, today reported revenue of $1,400,000 and a net loss of $373,000 or $0.02 per basic and diluted share, for the quarter ended September 30, 2004. Financial Results: Revenue for the quarter was $1,400,000 compared to $634,000 in the same quarter of 2003. The increase is primarily the result of $690,000 of revenue from a new research project on weight management with Alticor entered into in June 2004. Both periods include $625,000 in research funding related to the research agreement with Alticor entered into in March 2003. For the quarter, the Company reported a net loss of $373,000, or $0.02 per basic and diluted share, as compared to a net loss of $767,000, or $0.03 per basic and diluted share, for the same period last year. Research and development expenditures were $256,000 in the quarter ended September 30, 2004 compared to $374,000 in the comparable quarterly period ended September 30, 2003. The decrease in R&D expenses reflects a re-allocation of internal resources from internally-funded projects to the research projects funded by Alticor. Those reallocated costs are now reported as cost of revenue. Selling, general and administrative expenses were $667,000 for the quarter ended September 30, 2004 compared to $482,000 during the same period last year. The increase is primarily the result of the Company adding the appropriate infrastructure in its efforts to develop other markets for its products and building a CLIA laboratory. As of September 30, 2004, the Company reported total assets of $7,164,000, including $5,507,000 in cash and cash equivalents as compared to total assets of $5,458,000 including $4,759,000 in cash and cash equivalents as of December 31, 2003. The increase in cash reflects the $2,000,000 milestone payment received from Alticor in March 2004. For the nine months ended September 30, 2004, the Company reported revenue of $2,709,000 and a net loss of $2,222,000 or $0.09 per share compared to revenue of $1,295,000 and a net loss of $3,381,000 or $0.15 per share for the same period last year. 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, 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 Sept. 30, Dec. 31, Balance sheet data 2004 2003 ------------------ (Unaudited) (Audited) Cash, cash equivalents and marketable securities $5,506,990 $4,759,453 Total current assets 6,003,379 4,997,408 Total assets $7,164,026 $5,458,442 Total current liabilities $2,587,514 $1,288,104 Total liabilities 5,188,754 3,900,730 Total shareholders' equity 1,975,272 1,557,712 Total liabilities and shareholders' equity $7,164,026 $5,458,442 Statement of Three Months Ended Nine Months Ended operations September 30, September 30, data 2004 2003 2004 2003 --------------- ------------- ------------- ------------ ------------- (Unaudited) Sales $1,400,066 $633,785 $2,708,986 $1,295,432 Gross profit 570,878 140,212 933,153 402,522 Research and development 256,083 374,362 991,843 1,722,676 Selling, general, and administrative expense 667,199 481,935 2,099,333 1,778,088 ------------- ------------- ------------ ------------- Total operating expenses 923,282 856,297 3,091,176 3,500,764 ------------- ------------- ------------ ------------- Loss from operations (352,404) (716,085) (2,158,023) (3,098,242) Total other income and expense (20,113) (51,207) (63,992) (282,795) ------------- ------------- ------------ ------------- Net loss $(372,517) $(767,292) $(2,222,015) $(3,381,037) ============= ============= ============ ============= Basic and diluted loss per share $(0.02) $(0.03) $(0.09) $(0.15) Weighted average common shares outstanding 23,530,154 23,236,630 23,451,930 23,172,176 CONTACT: Interleukin Genetics Fenel M. Eloi, 781-398-0700