WALTHAM, Mass., Nov. 12 Interleukin Genetics, Inc. (NYSE Amex: ILI) today announced financial and operational results for the third quarter ended September 30, 2009.
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Lewis H. Bender, Chief Executive Officer, commented, "This quarter the company has completed market research to understand the most effective promotion and distribution channels to increase the sales of our Inherent Health brand of genetic tests. We are implementing what we learned to develop these channels. The most exciting development in the third quarter was the results announced from the clinical study conducted with our Weight Management test. Our data showed that individuals can lose statistically significantly more weight when using diets matched to their genotypes. The results have now been submitted for presentation at an important upcoming conference and a manuscript is being drafted. In addition, we continue to explore use of our genetic biomarkers and tests for drug development with potential partners."
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On September 23, 2009, we announced results from the weight management retrospective clinical study that demonstrated average weight loss of 6.2% (13.2 lbs) was achieved by individuals who were assigned to the genotype appropriate diets for 12 months versus 2.4% (4.6 lbs) for individuals assigned to inappropriate diets (p=0.013). The study also showed average percent change in waist circumference of 6.5% (2.6 inches) was achieved by individuals who were assigned to the genotype appropriate diets for 12 months versus 3.2% (1.2 inches) for individuals assigned to inappropriate diets (p=0.01).
Revenue from continuing operations for the three months ended September 30, 2009 was $0.3 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.
Research and development expenses from continuing operations were $0.87 million for the three months ended September 30, 2009 compared to $0.93 million for the same period in the prior year. The slight decrease from 2008 to 2009 is primarily attributable to ongoing costs associated with our patent portfolio offset by lower consulting and clinical trial expenses.
Selling, general and administrative expenses from continuing operations were $1.7 million for the three months ended September 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 offset by lower administrative consulting expenses.
The Company reported a net loss from continuing operations of $2.6 million, or $(0.08) per basic and diluted common share, for the third quarter of 2009, compared to a loss of $1.8 million, or $(0.06) for the same period in the prior year. On September 30, 2009, the Company had cash and cash equivalents of $1.4 million.
Q4 2009 Highlights to Date
Presented Findings at IDF 20th World Diabetes Congress. In October, Interleukin Genetics presented findings that suggest genetic variations in the perilipin, IL-1, ADRB and MCR-4 genes may predispose to abnormal levels of blood lipids and therefore could have potential clinical utility in the management of obese patients.
Presented Findings at American Society of Human Genetics 59th Annual Meeting. In October, Interleukin Genetics presented findings that suggest variations in IL1B, VDR, and ESR1 genes may indicate susceptibility for vertebral fracture or low bone mineral density.
Presented Findings at Obesity Society's 27th Annual Meeting. In October, Interleukin Genetics presented findings which suggest genetic variations in perilipin, IL-1 and ADRB genes show strong association with resistance to weight loss under caloric restriction. These genetic risk markers could have important clinical utility in the medical management of obese patients and in the design of optimal weight loss programs.
Corporate Highlights
Announced Partnership with Amway Global. In October, Interleukin Genetics announced an agreement with Amway Global that allows Amway's Independent Business Owners to sell Interleukin Genetics' Inherent Health brand of genetic tests.
Conference Call and Webcast Information
Interleukin Genetics will host a live conference call and webcast today at 4:30 p.m. EST to review the Company's new business developments and third quarter financial results. To access the live call, dial 888-287-5529 (domestic) or 719-325-2486 (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 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-Sep 31-Dec 2009 2008 ---- ---- (Unaudited) (Audited) Cash and cash equivalents $1,421,621 $4,952,481 Total current assets 1,861,053 6,866,284 Total assets $3,724,273 $12,154,388 Total current liabilities $2,681,894 $3,666,961 Total liabilities 7,681,894 7,671,961 Total shareholders' equity (3,957,621) 4,482,427 Total liabilities and shareholders' equity $3,724,273 $12,154,388 Statement of Operations Three Months Ended Nine Months Ended Data (Unaudited): September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Revenue: Genetic testing service revenue $119,309 $102,782 $352,130 $295,527 Contract research revenue $198,203 441,467 $520,935 1,380,759 Other $5,370 1,345 $20,274 32,799 ------ ----- ------- ------ Total revenue 322,882 545,594 893,339 1,709,085 ------- ------- ------- --------- Operating costs and expenses: Cost of genetic testing services 305,303 235,795 912,150 679,037 Research and development 873,195 933,003 2,628,943 2,455,230 Selling, general and administrative 1,660,235 1,196,580 4,473,860 3,864,216 Amortization of intangibles 28,863 26,271 86,590 70,611 ------ ------ ------ ------ Total operating costs and expenses 2,867,596 2,391,649 8,101,543 7,069,094 --------- --------- --------- --------- Loss from operations (2,544,714) (1,846,055) (7,208,204) (5,360,009) ---------- ---------- ---------- ---------- Total other income and expense, net (40,219) (11,820) (98,458) 50,656 ------- ------- ------- ------ Net loss before income taxes (2,584,933) (1,857,875) (7,306,662) (5,309,353) Benefit for income taxes - 37,000 - 31,000 --- ------ --- ------ Net loss from continuing operations $(2,584,933) $(1,820,875) $(7,306,662) $(5,278,353) =========== =========== =========== =========== Discontinued Operations: Profit (loss) from operations of discontinued 40,661 187,026 (6,012) 115,557 Alan James Group Business Loss on sale of discontinued - - (1,346,202) - Alan James Group Business Provision for income taxes - (8,000) (53,000) (20,500) --- ------ ------- ------- Profit (loss) on discontinued operations $40,661 $179,026 $(1,405,214) $95,057 ------- -------- ----------- ------- Net loss $(2,544,272) $(1,641,849) $(8,711,876) $(5,183,296) =========== =========== =========== =========== Basic and diluted net (loss) income per common share from: Continuing operations ($0.08) ($0.06) ($0.23) ($0.17) ====== ====== ====== ====== Discontinued operations - $0.01 ($0.04) - === ===== ====== === Net loss ($0.08) ($0.05) ($0.27) ($0.17) ====== ====== ====== ====== Weighted average common shares outstanding 32,059,258 31,792,999 31,975,953 31,204,196 ========== ========== ========== ==========
SOURCE Interleukin Genetics, Inc.
