WALTHAM, Mass.--(BUSINESS WIRE)--Interleukin Genetics, Inc. (OTCQB:ILIU) today issued financial and operational results for its fiscal second quarter ended June 30, 2014.
“The utilization of our PerioPredict™ genetic test in the dental office is progressing well as a result of the education approach we have used,” said Dr. Kenneth Kornman, Chief Executive Officer of Interleukin Genetics. “Adoption appears to be especially high at dental offices where ten or more patients have insurance plans that cover the test. This is important information for us to have as we continue our work supporting the education of dental offices about how to use the test to enhance dental preventative care. We continue to actively pursue new payer partners and work toward expanding the network of insurers who offer coverage for a risk-based preventative dental program.”
Dr. Kornman continued: “We are also pleased to report the publication of new study data demonstrating the ability of Interleukin’s proprietary Heart Health Genetic Test to accurately predict future cardiovascular events. These data, which were published in the Journal of the American College of Cardiology, build upon the body of scientific evidence that supports the use of the Heart Health test to inform and improve a physician’s clinical decision-making for patients with cardiovascular disease.”
Second Quarter 2014 Financial Results
Revenues for the quarter ended June 30, 2014 were $529,000, compared to $852,000 for the same period in 2013. The decline in total revenue is primarily attributable to higher revenues in the 2013 period due to a promotion, by our partner Amway, resulting in a larger volume of pre-paid test kits returned for processing. The decrease in genetic testing revenue was partially offset by breakage revenue related to unredeemed test kits recognized from deferred revenue and recorded in the second quarter of 2014, and increased royalty revenue.
Research and development expenses for the quarter ended June 30, 2014 were $216,000, compared to $188,000 for the same period in 2013. The increase is primarily attributable to increased compensation.
Selling, general and administrative expenses for the quarter ended June 30, 2014 were $1.5 million, compared to $1.6 million for the same period in 2013. The decrease is primarily attributable to decreased expenses related to marketing activities for our PerioPredict™ periodontal genetic test, decreased consulting and professional expenses and lower sales commissions paid to Amway Global as part of our Merchant Channel and Partner Store Agreement, partially offset by increased compensation expenses.
Net loss for the quarter ended June 30, 2014 was $1.6 million, or $(0.01) per basic and diluted common share, compared to $1.8 million or $(0.02) per basic and diluted common share for the same period in 2013.
Cash and cash equivalents were $4.2 million as of June 30, 2014.
Second Quarter 2014 Highlights
- Published Scientific Data Demonstrating the Ability of Interleukin’s Proprietary Heart Health Genetic Test to Predict for Cardiovascular Disease in the Journal of the American College of Cardiology: In May, researchers from the University of California at San Diego reported (Tsimikas et al. 2014) that Interleukin’s IL-1 genetic test for heart disease was an independent predictor of coronary artery disease. In addition, patients who were positive for the IL-1 genetic test and were above the median level of oxidized blood phospholipids exhibited cardiovascular disease earlier and had worse 4-year event-free survival (death, myocardial infarction, stroke, and need for revascularization) compared with other groups.
- Secured Approval in New York State to Offer PerioPredict™: In April, the Company announced receipt of conditional approval from the New York State Department of Health to offer, process and report the results of the PerioPredict™ Genetic Risk Test for periodontal disease. Conditional approval is obtained when no significant concerns are identified during review, is subject to demonstration of ongoing compliance with New York State regulations and standards, and is the approval designation prior to notification of full approval. The State of New York is the only U.S. state that requires an independent regulatory review process including technical validation with clinical utility for laboratory developed tests run within a CLIA certified laboratory. As a result of New York State approval the PerioPredict™ test is now available to dental providers and their patients in all 50 U.S. states.
- Published Additional Evidence Supporting PerioPredict in Journal of Periodontal Research: In April, the Company announced publication of its research study titled “Association of interleukin-1 gene variations with moderate to severe chronic periodontitis in multiple ethnicities” in the Journal of Periodontal Research. Results of the study validated the PerioPredict™ genetic risk test in multiple ethnic populations and provided added value beyond the standard predictive risk factors for severe periodontal disease.
Conference Call and Webcast Information
Interleukin Genetics, Inc. will host a live conference call and webcast today at 4:30 p.m. EDT. To access the live call, dial 877-324-1976 (domestic) or 631-291-4550 (international). The live webcast will be available at the Investors section of the Company’s website, www.ilgenetics.com.
The webcast will be archived following the call at www.ilgenetics.com.
About Interleukin Genetics
Interleukin Genetics, Inc. (OTCQB: ILIU) develops and markets proprietary genetic tests for chronic diseases and health related conditions. The products empower individuals to prevent certain chronic conditions and manage their existing health and wellness through genetic-based insights with actionable guidance. Interleukin Genetics leverages its research, intellectual property and genetic panel development expertise in metabolism and inflammation to facilitate the emerging personalized healthcare market. The Company markets its tests through partnerships with health and wellness companies, healthcare professionals and other distribution channels. Interleukin Genetics’ flagship products include its proprietary PerioPredict™ genetic risk panel for periodontal disease and tooth loss susceptibility sold through dentists, and the Inherent Health Weight Management Genetic Test that identifies the most effective diet and exercise program for an individual based on genetics. Interleukin Genetics is headquartered in Waltham, MA and operates an on-site, state-of-the-art DNA testing laboratory certified under the Clinical Laboratories Improvements Act (CLIA). For more information please visit www.ilgenetics.com.
Certain statements contained herein are “forward-looking” statements, including statements related to the potential expansion of the network of insurers who offer coverage for a risk-based preventative dental program. 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, those risks and uncertainties described in the Company’s annual report on Form 10-K for the year ended December 31, 2013, the Company’s quarterly report on Form 10-Q for the quarter ended June 30, 2014 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.|
|Balance Sheet Data||June 30,||December 31,|
|Cash and cash equivalents||$||4,191,356||$||7,542,281|
|Total current assets||$||5,095,820||$||8,952,583|
|Total current liabilities||$||3,935,143||$||4,871,833|
|Total shareholders' equity||$||2,276,099||$||5,253,222|
|Total liabilities and shareholders' equity||$||6,211,242||$||10,125,055|
|Statement of Operations Data||Three Months Ended June 30,||Six Months Ended June 30,|
|Genetic testing service revenue||$||483,214||$||849,422||$||903,547||$||1,332,785|
|Cost of revenue||361,746||496,417||756,517||879,988|
|Operating costs and expenses:|
|Research and development||215,519||187,776||424,696||348,156|
|Selling, general and administrative||1,506,057||1,573,386||3,032,663||2,575,558|
|Amortization of intangibles||23,525||25,770||47,050||54,633|
|Total operating expenses||1,745,101||1,786,932||3,504,409||2,978,347|
|Loss from operations||(1,578,252)||(1,431,221)||(3,244,765)||(2,518,814)|
|Total other income and (expense), net||1,605||(345,090)||3,599||(459,077)|
|Loss from operations|
|before income taxes||(1,576,647)||(1,776,311)||(3,241,166)||(2,977,891)|
|Benefit for income taxes||-||-||-||-|
|Basic and diluted net loss per common share||$||(0.01)||$||(0.02)||$||(0.03)||$||(0.05)|
|Weighted average common shares outstanding,|
|basic and diluted||122,516,317||79,006,278||122,499,091||58,007,551|