WALTHAM, Mass., March 27 /PRNewswire-FirstCall/ -- Interleukin Genetics, Inc. today announced results for the fourth quarter and year ended December 31, 2007.
The Company reported revenues of $9.7 million and a net loss of $6.2 million, or $(0.22) per basic and diluted common share, for the year ended December 31, 2007, and revenues of $2.3 million and a net loss of $1.5 million, or $(0.05) per basic and diluted common share, for the quarter ended December 31, 2007.
“I am pleased to be leading this exciting company and working to leverage its compelling science and unique market opportunities to help improve patient care. The Company’s infrastructure, from its accredited CLIA lab to its distribution channel for nutritional supplements, Alan James Group, to its intellectual property, is unique to the industry,” commented Lewis H. Bender, Chief Executive Officer. “While 2007 was a transitional year for Interleukin Genetics, from management’s standpoint, we made several key advances within our pipeline and added outstanding scientific talent to our team. During the year, the Company conducted market research and initiated new research programs, and we have thus positioned ourselves well to address the increasingly important role of genetic testing in the field of personalized medicine.”
Year End Results
Revenue for the year ended December 31, 2007 was $9.7 million compared to $4.7 million for the year ended December 31, 2006, an increase of $5.0 million or 105%. $4.8 million of the increase was due to the inclusion of the consumer products segment for all of 2007 compared to the 4 and 1/2 months post acquisition in 2006. Additionally, the Company’s personal health segment increased revenues by $147,000 in 2007 over 2006.
Research and development expenses were $2.9 million for the year ended December 31, 2007 compared to $3.3 million for the year ended December 31, 2006, a decrease of $334,000 or 10%. Selling, general and administrative expenses were $6.4 million for the year ended December 31, 2007 compared to $4.5 million for the year ended December 31, 2006, an increase of approximately $1.9 million or 41%. Approximately $1.3 million of this increase resulted from the inclusion of the consumer products segment for the full year 2007 and only since its acquisition in August 2006 in the prior year. Approximately $600,000 of this increase in 2007 resulted from the recording of a potential liability to former employees.
The Company reported a net loss of $6.2 million, or $(0.22) per basic and diluted common share, for the year ended 2007 compared to a net loss of $6.9 million, or $(0.27) per basic and diluted common share in 2006. The decrease was due largely to inclusion of the consumer products segment for the full year 2007, whereas in 2006 that segment was only included since its acquisition on August 17, 2006.
Fourth Quarter Results
Revenue for the three months ended December 31, 2007, was $2.3 million compared to $1.8 million for the same period in 2006. The increase was due largely to increased research revenue in 2007 compared to 2006.
Research and development expenses were $682,000 for the quarter ended December 31, 2007, compared to $1 million for the quarter ended December 31, 2006. The decrease was due largely to a reduction in personnel.
Selling, general and administrative expenses were $1.5 million for the three months ended December 31, 2007, compared to $1.6 million during the same period in the prior year, a decrease of approximately 6%, due largely to a reduction in personnel.
The Company reported a net loss of $1.5 million, or $(0.05) per basic and diluted common share, for the fourth quarter of 2007 compared to a net loss of $2.6 million, or $(0.10) per basic and diluted common share, for the fourth quarter of 2006.
On December 31, 2007, the Company reported cash and cash equivalents of $7.6 million compared to $10.1 million of cash and cash equivalents on December 31, 2006. In addition, the Company has access to $14.3 million under credit facilities with Alticor through August 2008.
“In 2008, we initiated an extensive effort to improve the reporting and communication of test results. Going forward, we expect to continue to initiate studies, validate existing results and provide clear, actionable information to customers in their personalized reports,” continued Mr. Bender. “The use of genetic testing to determine the risk of the onset of diseases such as heart disease, osteoarthritis, obesity or gastric cancer and test results regarding an individual’s genetic factors affecting nutrition, skin appearance or weight, will aid patients and their physicians in making decisions about the patient’s healthcare. Looking ahead to the rest of the year, we are poised to demonstrate the value of our intellectual property, testing services, distribution networks and nutritional products.”
American College
Conference Call and Webcast Information
Interleukin Genetics will host a live conference call and webcast today at 4:30 p.m. EDT. To access the live call, dial 877-440-5803 (domestic) or 719- 325-4900 (international). The live webcast will be available in the Investors section of the Company’s website, www.ilgenetics.com.
Replay access of the teleconference will be available for two weeks following the call by dialing 719-457-0820 (domestic) or 888-203-1112 (international). The passcode for the replay is 3385694. The webcast will be archived following the call at www.ilgenetics.com.
About Interleukin
Interleukin Genetics, Inc. 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 uses its leading genetics research and scientific capabilities to develop and test innovative preventive and therapeutic products. Interleukin currently offers an array of Nutraceuticals and OTCeuticals(R), including Ginkoba(R), Ginsana(R) and Venastat(R) which are sold at the nation’s largest food, drug and mass retailers, and has commercialized genetic tests for periodontal disease risk assessment, cardiovascular risk assessment, and general nutrition assessment. Interleukin is headquartered in Waltham, MA. For more information about Interleukin and its ongoing programs, please visit www.ilgenetics.com.
Certain statements contained herein are “forward-looking” statements including statements regarding the ability to develop diagnostic, personalized nutritional and therapeutic products to prevent or treat diseases of inflammation and other genetic variations, the ability to screen nutritional compounds for their effects on inflammatory responses and other genetic variations, given specific genetic patterns, the ability to make progress in advancing our core technologies, the ability to identify suitable commercial partners and enter into favorable agreements with them, and our expectations regarding future revenues from the Company’s 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 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, the ability to integrate acquired businesses, the ability to maintain relationships with customers, and those risks and uncertainties described in the Company’s annual reports on Form 10-K, quarterly reports on Form 10-Q and other filings made with the Securities and Exchange Commission. The Company disclaims any obligation or intention to update these forward-looking statements.
CONTACT: Investors, Melanie Friedman of Stern Investor Relations,
+1-212-362-1200, or Media, Catherine Cloft of LaVoie Group, +1-978-745-4200
x107, both for Interleukin Genetics, Inc.
Web site: http://www.ilgenetics.com/
