May 14 2010
Interleukin Genetics, Inc. (NYSE Amex: ILI) announced today financial and operational results for the first quarter ended March 31, 2010.
"Interleukin Genetics experienced an excellent start to 2010 with an approximately 166 percent increase in overall genetic test revenue. That is testament to the strong interest and growth potential for meaningful genetic tests that are packaged with understandable and actionable guidance backed by solid clinical evidence," said Interleukin Genetics CEO Lewis H. Bender. "We are confident that the Company will continue to establish new partnerships, introduce new products and continue to grow our Inherent Health test business, which is led by our unique and proprietary Weight Management Genetic Test product."
In March, Interleukin Genetics announced positive findings from a retrospective clinical study on its Weight Management Genetic Test at the American Heart Association's Joint 50th Cardiovascular Disease Epidemiology and Prevention -- and -- Nutrition, Physical Activity and Metabolism conference. The study enabled Interleukin Genetics to raise considerable awareness about the availability and benefit of the product to guide successful diet and exercise regimens based on a proprietary genetic test panel.
"There's significant potential for our weight management genetic test to be integrated into health and lifestyle programs designed to combat obesity and overweight. We are excited to see the outpouring of interest in this test from customers and the medical community, who are in great need of new tools to manage the obesity epidemic," added Bender.
Q1 Financial Highlights
Revenue from continuing operations for the three months ended March 31, 2010, was $369,000 compared to $347,000 for the same period in the prior year. The 6 percent increase is primarily attributable to growth in genetic testing revenue to $366,000 for the first quarter of 2010 from $138,000 for the first quarter of 2009, offset by lower contract research and royalty revenue.
Research and development expenses were $560,000 for the three months ended March 31, 2010 compared to $882,000 for the same period in the prior year. The decrease is primarily attributable to decreased clinical trial expenses related to our research agreements with Alticor, which were completed in 2009, as well as lower compensation and consulting expenses.
Selling, general and administrative expenses from continuing operations were $1.3 million for the three months ended March 31, 2010, compared to $1.5 million for same period in the prior year. The decrease was primarily attributable to reduced expenses related to consulting and compensation partially offset by increased advertising and promotional expenses related to our Inherent Health brand of genetic tests.
The Company reported a net loss of $2.0 million, or $(0.06) per basic and diluted common share, for the first quarter of 2010, compared to $2.5 million, or $(.08) for the same period in the prior year. Included in the prior year results was a loss of $0.1 million from discontinued operations. On March 31, 2010, the Company reported cash and cash equivalents of $6.1 million, which includes approximately $4.9 million in net proceeds from the registered direct offering completed in March 2010. In addition, the Company has access to $5.3 million under credit facilities with Alticor.
Q1 2010 Company Highlights
Presented Clinical Findings at the AHA's Joint Annual Meeting. In March, the Company announced presentation of findings from a retrospective clinical study on weight management conducted in collaboration with Stanford University that determined whether individuals who were assigned diets that were appropriate for their genotype could lose more weight than those who followed a diet inappropriate for their genotype, as determined by the Interleukin Genetics proprietary Weight Management Genetic Test. The findings showed statistically significant greater weight loss, metabolic benefit and other improvements when compared to individuals on diets not matched to their genotype.
Received Approval to Sell Heart Health Genetic Test in Certain European Countries. In January, the Company announced that LABEC Pharma met European regulatory guidelines to sell Interleukin Genetics' Heart Health genetic test. The test, which helps to identify individuals at elevated risk for early heart attack, will be marketed to physicians in Spain and Portugal by LABEC Pharma under the product name CardioHealth™.
Raised $5.3 Million in Registered Direct Offering. In March, the Company announced that it received commitments from certain institutional investors to purchase approximately $5.3 million of securities in a registered direct offering. The investors purchased an aggregate of 4,375,002 units for $1.20 per unit, with each unit consisting of a share of common stock and a warrant to purchase 0.40 of a share of common stock. The warrants are exercisable at $1.30 per share and expire in five years. Net proceeds to the Company after fees and expenses were approximately $4.9 million.
Interleukin Genetics, Inc.