WALTHAM, Mass.--(BUSINESS WIRE)--
Interleukin Genetics, Inc. (ILIU) today issued financial and operational results for its fiscal first quarter ended March 31, 2014.
“We are proud to report the achievement of multiple milestones so far in 2014, including the publication of key supportive clinical data for PerioPredict™, our genetic risk test for severe periodontal disease, and the receipt of an important regulatory approval from New York State to offer it in this high-value territory,” said Dr. Kenneth Kornman, Chief Executive Officer of Interleukin Genetics. “On the business development front, we are ramping up our payer partnering efforts with the goal of expanding our network of insurers who have a vested interest in offering a risk-based preventative dental program with significant health economic benefits, and ultimately maximizing the market opportunities for PerioPredict™. We look forward to updating you on the progress with this initiative, as well as Delta Dental’s ongoing commercial rollout of PerioPredict™ in the coming months and quarters.”
First Quarter 2014 Financial Results
Revenues for the quarter ended March 31, 2014 were $488,000, compared to $487,000 for the same period in 2013. The change in total revenue is primarily attributable to decreased genetic testing revenue quarter to quarter, offset in part by breakage revenue recognized from deferred revenue recorded in the first quarter of 2014 and increased royalty revenue.
Research and development expenses for the quarter ended March 31, 2014 were $209,000, compared to $160,000 for the same period in 2013. The increase is primarily attributable to increased compensation.
Selling, general and administrative expenses for the quarter ended March 31, 2014 were $1.5 million, compared to $1.0 million for the same period in 2013. The increase is primarily attributable to increased expenses related to marketing activities for our PerioPredict™ periodontal genetic test, increased consulting, professional, and compensation expenses partially offset by lower sales commissions paid to Amway Global as part of our Merchant Channel and Partner Store Agreement.
Net loss for the quarter ended March 31, 2014 was $1.7 million, or $(0.01) per basic and diluted common share, compared to $1.2 million or $(0.03) per basic and diluted common share for the same period in 2013.
Cash and cash equivalents were $5.7 million as of March 31, 2014.
First Quarter 2014 and Recent Highlights
Secured Approval in New York State to Offer PerioPredict™: In April 2014, 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 2014, 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. (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. 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 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||March 31,||December 31,|
|Cash and cash equivalents||$||5,713,977||$||7,542,281|
|Total current assets||$||6,679,749||$||8,952,583|
|Total current liabilities||$||4,111,529||$||4,871,833|
|Total shareholders' equity (deficit)||$||3,720,813||$||5,253,222|
|Total liabilities and shareholders' equity (deficit)||$||7,832,432||$||10,125,055|
|Statement of Operations Data||Three Months Ended March 31,|
|Genetic testing service revenue||$||420,333||$||483,363|
|Cost of revenue||394,771||383,571|
|Operating costs and expenses:|
|Research and development||209,176||160,380|
|Selling, general and administrative||1,526,606||1,002,172|
|Amortization of intangibles||23,525||28,863|
|Total operating expenses||1,759,307||1,191,415|
|Loss from operations||(1,666,512||)||(1,087,593||)|
|Total other income and (expense), net||1,993||(113,987||)|
|Loss from operations|
|before income taxes||(1,664,519||)||(1,201,580||)|
|Benefit for income taxes||-||-|
|Basic and diluted net loss per common share||$||(0.01||)||$||(0.03||)|
|Weighted average common shares outstanding,|
|basic and diluted||122,481,674||36,775,504|
- Company Earnings
- Health Care Industry
- New York State
- periodontal disease