Interleukin Genetics Reports First Quarter Financial Results.WALTHAM, Mass. -- - Commercial Launch of New Genetic Tests Begins - Interleukin interleukin Any of a class of naturally occurring proteins important in regulation of lymphocyte function. Several known types are recognized as crucial constituents of the body's immune system (see immunity). Genetics, Inc. (AMEX AMEX See: American Stock Exchange : ILI) today reported financial results for the quarter ended March 31, 2006. The company generated revenue of $232,000 and a net loss of $1.6 million or $0.07 per basic and diluted common share for the quarter. Interleukin Genetics' reported revenues resulted almost entirely from the processing of genetic tests for cardiovascular health and general nutrition. "Interleukin Genetics has made the successful transition to commercial operations in the first quarter through the introduction of two new genetic assessment tests," said Ken Kornman, Interleukin Genetics' CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Our objective is to now build on this key operational milestone by focusing our attention on expanding our genetic testing Genetic Testing Definition A genetic test examines the genetic information contained inside a person's cells, called DNA, to determine if that person has or will develop a certain disease or could pass a disease to his or her offspring. services and business development initiatives, as well as our development pipeline. In addition, we are committed to increasing the scope of applications utilizing the Company's intellectual property, and we look forward to reporting on our progress going forward." Operating Highlights for the quarter ended March 31, 2006: --The Company commenced sales of two new genetic tests for personal wellness assessment - the interleukin-1 test for cardiovascular health and the general nutrition test. --Interleukin Genetics began operations in its specially designed and constructed genetic testing laboratory. The laboratory is registered under CLIA CLIA Clinical Laboratory Improvement Amendments of 1988 Congressional legislation that promulgated quality assurance practices in clinical labs, and required them to measure performance at each step of the testing process from the beginning to the end-point of a , the Clinical Laboratory Improvements Amendments, with the Division of the Centers for Medicare and Medicaid Services The Centers for Medicare and Medicaid Services (CMS), previously known as the Health Care Financing Administration (HCFA), is a federal agency within the United States Department of Health and Human Services (DHHS) that administers the Medicare program and that regulates laboratory testing in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Samples were first processed in February, 2006. --The Company initiated a new study in China utilizing its proprietary interleukin-1 technology to evaluate potential population-specific genetic links to myocardial infarction myocardial infarction: see under infarction. at an early age and expects to enroll approximately 1,300 subjects. A similar study that is ongoing in Korea will enroll approximately 750 subjects. --Interleukin Genetics announced executive management changes as it focuses on executing its commercial strategy and expanding development programs. Ken Kornman, the company's founder and Chief Scientific Officer, assumed the additional role of CEO, replacing Phil Reilly who will remain Chairman of the Board of Directors. Gregg Mayer joined the company as Chief Business Officer and is driving business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and strategy. Interleukin Genetics is actively seeking new opportunities and strategic alliances that capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. its proprietary interleukin-1 technology for the development of genetic tests and therapeutic products. Financial Results: Revenue for the three months ended March 31, 2006 was $232,000 compared to $7,000 in the same period of 2005. The increase was largely due to the amounts received for processing the cardiovascular health and general nutrition genetic tests that are sold by the company's strategic partner, Alticor. Cost of revenue, which includes fixed overhead costs overhead costs see fixed costs. associated with laboratory operations, was $198,000 for the three months ended March 31, 2006, resulting in a gross profit of $34,000. For fiscal year 2006, the company is currently projecting a gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. of 40-45% from these genetic tests. Research and development expenses were $729,000 for the quarter ended March 31, 2006 compared to $684,000 for the quarter ended March 31, 2005, an increase of approximately 7%. These expenses include research and development expenses funded by Alticor under research and development agreements for the development of new tests. This increase was the result of new accounting rules that required the recording of stock-based compensation of approximately $74,000. General and administrative expenses were $765,000 for the three months ended March 31, 2006 compared to $704,000 during the same period in the prior year, an increase of approximately 9%. This increase was the result of new accounting rules that required the recording of stock-based compensation of approximately $69,000. The company reported a net loss of $1.6 million, or $0.07 per basic and diluted common share, in the first quarter of 2006 compared to a net loss of $1.5 million, or $0.06 per basic and diluted common share, in the first quarter of 2005. On March 31, 2006, the company reported cash and cash equivalents of $2.9 million compared to $3.4 million of cash and cash equivalents on December 31, 2005. About Interleukin Interleukin Genetics is a biotechnology company focused on developing and commercializing personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. health products. The company uses its proprietary technology to help in the development of risk assessment tests, pharmacogenetic tests, nutritional and therapeutic products based on the genetic variations in people. Interleukin Genetics has commercialized genetic tests for periodontal disease Periodontal Disease Definition Periodontal diseases are a group of diseases that affect the tissues that support and anchor the teeth. Left untreated, periodontal disease results in the destruction of the gums, alveolar bone (the part of the jaws where risk assessment, cardiovascular risk assessment and general nutrition assessment, and its current development programs focus on osteoporosis osteoporosis (ŏs'tēō'pərō`sĭs), disorder in which the normal replenishment of old bone tissue is severely disrupted, resulting in weakened bones and increased risk of fracture; osteopenia and weight management. Interleukin expects that these programs will also lead to products that will personalize per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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 DNA testing Analysis of DNA (the genetic component of cells) in order to determine changes in genes that may indicate a specific disorder. Mentioned in: Acoustic Neuroma, Retinoblastoma, Von Willebrand Disease 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005 filed with the Securities and Exchange Commission, our quarterly reports on Form 10-Q Form 10-Q See 10-Q. and in other filings made by us with the Securities and Exchange Commission. We disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any obligation or intention to update these forward-looking statements.
Interleukin Genetics, Inc.
Financial Highlights
Balance Sheet data: 03/31/2006 12/31/2005
----------------------------------------------------------------------
(Unaudited) (Audited)
Cash and cash equivalents $2,896,248 $3,415,174
Total current assets 3,139,154 3,589,656
Total assets $4,513,282 $4,970,075
Total current liabilities $1,400,249 $3,014,742
Total liabilities 3,187,305 4,686,330
Total shareholders' equity 1,325,977 283,745
Total liabilities and shareholders' equity $4,513,282 $4,970,075
Statement of Operations data: Three Months Ended
--------------------------------------
03/31/2006 03/31/2005
--------------------------------
(Unaudited) (Unaudited)
Revenue $232,234 $7,359
Gross profit 34,582 7,359
Research and development 729,095 684,003
General and administrative 765,111 703,939
------------ ------------
Total operating expenses 1,494,206 1,387,942
------------ ------------
Loss from operations (1,459,624) (1,380,583)
Total other income and expense (129,854) (134,381)
------------ ------------
Net loss $(1,589,478) $(1,514,964)
============ ============
Basic and diluted loss per share $(0.07) $(0.06)
Weighted average common shares outstanding 24,019,004 23,604,882
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion