WALTHAM, Mass., Aug. 13 /PRNewswire-FirstCall/ -- Interleukin
Genetics, Inc. (NYSE Amex: ILI) today announced financial and
operational results for the second quarter ended June 30, 2009.
"The launch of our new Inherent Health brand of genetic test
products marked a significant milestone for the Company in the
second quarter. Our novel and unique product, the Weight Management
genetic test, has been well received and is generating interest
through a number of channels," said Lewis H. Bender, Chief
Executive Officer. "We further executed on our key strategic
objective, which is to grow our genetic testing business, by
divesting the Alan James Group and signing a licensing partnership
with LABEC Pharma for sales and distribution of our Heart Health
product in Spain and Portugal." Revenue from continuing operations
for the three months ended June 30, 2009 was $0.2 million compared
to $0.5 million for the same period in the prior year. The decrease
was primarily attributable to lower contract research revenue.
Genetic test revenue increased this quarter over the same period in
the prior year as we experience positive growth in that segment of
our business. In addition, prior to the opening of business on July
1, 2009, the Company executed an agreement to sell substantially
all of the Alan James Group assets of its subsidiary AJG Brands,
Inc. to Pep Products, Inc. for a sales price of $4.6 million, with
$4.4 million received on July 1, 2009 and the balance of $200,000
due to the Company after two years, subject to certain conditions.
Research and development expenses from continuing operations were
$0.9 million for the three months ended June 30, 2009 compared to
$0.7 million for the same period in the prior year. The increase is
primarily attributable to ongoing costs associated with our patent
portfolio. In addition, we continue to allocate resources to
projects underway with Alticor, as well as the development of our
own genetic test products. Selling, general and administrative
expenses from continuing operations were $1.3 million for the three
months ended June 30, 2009, compared to $1.2 million for same
period in the prior year. The increase was primarily attributable
to product development costs associated with our new Inherent
Health(TM) brand of genetic tests. The Company reported a net loss
from continuing operations of $2.3 million, or $(0.07) per basic
and diluted common share, for the second quarter of 2009, compared
to $1.6 million, or $(0.05) for the same period in the prior year.
The Company recorded a net loss from discontinued operations of
$1.4 million or $(0.05) per basic and diluted common share. The
Company reported a total net loss of $3.7 million, or $(0.12) per
basic and diluted common share, for the second quarter of 2009
compared to $1.7 million or $(0.05) for the same period in the
prior year. On June 30, 2009, the Company reported cash and cash
equivalents of $0.9 million. In addition to cash on hand and the
$4.4 million in cash proceeds received on July 1, 2009 from the
sale of AJG assets, the Company has access to $9.3 million under
its credit facility with Pyxis Innovations, Inc., an affiliate of
Alticor. 2009 Highlights to Date Corporate Highlights -- Sold Alan
James Group assets of its subsidiary AJG Brands, Inc. In July, the
Company executed an agreement to sell the Alan James Group assets
of its subsidiary AJG Brands, Inc. to Pep Products, Inc. for $4.6
million. -- Launched Inherent Health Brand of Genetic Tests.
Announced in June the introduction of Inherent Health brand of
genetic tests and related programs including the first-of-its-kind
test for weight management that identifies an individual's genetic
tendencies for weight gain and metabolism. -- Granted License of
Heart Health Genetic Test to LABEC Pharma. In April, the Company
entered into a licensing agreement to permit LABEC Pharma to market
and sell the Company's Heart Health genetic test throughout Spain
and Portugal. -- Amex Accepts Plan to Meet Continued Listing
Standards. In May, Interleukin Genetics announced the Corporate
Compliance Staff of the NYSE Amex LLC (the "Exchange") accepted the
Company's plan to meet continued listing standards and granted the
Company an extension to become compliant through December 31, 2009.
Scientific Highlights -- Presented Data at the American Diabetes
Association's Annual Meeting. In June, Interleukin Genetics
presented research findings highlighting associations between
perilipin gene variants and response to weight loss in overweight
individuals at the ADA's 69th Scientific Sessions in New Orleans.
-- Co-Presented on Use of Biomarkers in Drug Development at BIO.
Moderated and co-presented panel discussion on use of biomarkers in
drug development in May at the BIO International Convention.
Conference Call and Webcast Information Interleukin Genetics will
host a live conference call and webcast today at 4:30 p.m. EDT to
review the Company's new business developments and first quarter
financial results. To access the live call, dial 877-440-5796
(domestic) or 719-325-4847 (international). The live webcast and
replay access will be available on the Investors section of the
Company's website at http://www.ilgenetics.com/. About Interleukin
Genetics Interleukin Genetics, Inc. (NYSE Amex: ILI) develops and
markets genetic tests that empower consumers to prevent chronic
diseases of aging and that assist pharmaceutical companies in the
development and marketing of targeted therapeutics. The Company
leverages its research, intellectual property, and biomarker
development experience to facilitate the emerging personalized
health market. Interleukin Genetics is headquartered in Waltham,
MA. For more information please visit http://www.ilgenetics.com/.
Certain statements contained herein are "forward-looking"
statements including statements regarding growth of the Company's
genetic testing business and the Company's ability to achieve
compliance with the NYSE Amex continued listing standards by
December 31, 2009. 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 the
Company's products, the risk of technology and product
obsolescence, delays in product development, the performance of
commercial partners, the availability of adequate capital, the
actions of competitors and other competitive risks, and those risks
and uncertainties described in the Company's annual report on Form
10-K for the year ended December 31, 2008, quarterly reports on
Form 10-Q and other filings with the Securities and Exchange
Commission. The Company disclaims any obligation or intention to
update these forward-looking statements. INTERLEUKIN GENETICS, INC.
AND SUBSIDIARIES FINANCIAL HIGHLIGHTS Balance Sheet Data: 30-Jun
31-Dec 2009 2008 ---- ---- (Unaudited) (Audited) Cash and cash
equivalents $851,526 $4,952,481 Total current assets 5,660,319
6,866,284 Total assets $7,634,065 $12,154,388 Total current
liabilities $4,122,193 $3,666,961 Total liabilities 9,122,193
7,671,961 Total shareholders' (deficit) equity (1,488,128)
4,482,427 Total liabilities and shareholders' (deficit) equity
$7,634,065 $12,154,388 Statement of Operations Data (Unaudited):
Three Months Ended Six Months Ended June 30, June 30, 2009 2008
2009 2008 ---- ---- ---- ---- Revenue: Genetic testing service
revenue $95,309 $90,993 $232,821 $192,745 Contract research revenue
119,046 402,280 322,732 939,293 Other 8,638 28,346 14,904 31,453
Total revenue from continuing operations 222,993 521,619 570,457
1,163,491 Operating costs and expenses: Cost of genetic testing
services 301,875 208,457 606,847 443,241 Research and development
874,192 708,855 1,755,748 1,522,226 Selling, general and
administrative 1,334,472 1,208,325 2,813,625 2,667,637 Amortization
of intangibles 28,863 22,841 57,727 44,341 Total operating costs
and expenses 2,539,402 2,148,478 5,233,947 4,677,445 Loss from
continuing operations (2,316,409) (1,626,859) (4,663,490)
(3,513,954) Total other expense and income, net (34,401) 9,946
(58,239) 62,476 Net loss from continuing operations before income
taxes (2,350,810) (1,616,913) (4,721,729) (3,451,478) Provision for
income taxes 10,000 50 - (6,000) Net loss from continuing
operations $(2,340,810)$(1,616,863) $(4,721,729)$(3,457,478)
=========== =========== =========== =========== Net loss from
discontinued operations (1,370,707) (49,482) (1,445,875) (83,969)
Net Loss $(3,711,517)$(1,666,345) $(6,167,604)$(3,541,447)
=========== =========== =========== =========== Net loss per basic
and diluted common share from continuing operations $(0.07) $(0.05)
$(0.14) $(0.11) ====== ====== ====== ====== Net loss per basic and
diluted common share from discontinued operations $(0.05) $(0.00)
$(0.05) $(0.00) ====== ====== ====== ====== Net loss per basic and
diluted common share $(0.12) $(0.05) $(0.19) $(0.11) ====== ======
====== ====== Weighted average common shares outstanding 32,010,387
30,976,909 31,933,612 30,904,916 ========== ========== ==========
========== DATASOURCE: Interleukin Genetics, Inc. CONTACT: Media,
Erin Walsh of Interleukin Genetics, +1-781-419-4707, ; or Investor
Relations, +1-Stephanie Ascher of Stern Investor Relations,
+1-212-362-1200, Web Site: http://www.ilgenetics.com/
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