Interleukin Genetics Reports First Quarter 2015 Financial Results

Company to Host Conference Call Today at 8:30 a.m. ET

WALTHAM, Mass.--(BUSINESS WIRE)-- Interleukin Genetics, Inc. (OTCQB: ILIU) today announced financial and operational results for its fiscal first quarter of 2015 ended March 31, 2015.

“Interleukin Genetics’ highest priority in the coming months is to maximize the commercial potential of PerioPredict®, our genetics-based risk assessment test for severe periodontitis,” said Mark B. Carbeau, Chief Executive Officer of Interleukin Genetics. “Going forward, we will continue to place significant emphasis and efforts on increasing the adoption and awareness of PerioPredict, and our new partnership with Employee Benefit Consulting Group (EBCG) is a key element of our strategy. As a channel partner, EBCG has unique expertise in the U.S. insurance market and strong relationships with employers, insurance carriers, and health and wellness providers. PerioPredict offers benefits to patients, dental professionals and payers, and we will be working with our partners to redesign and implement coverage policies that are better aligned with what all of these stakeholders are seeking.”

Mr. Carbeau continued: “With a strong scientific foundation supporting the utility of PerioPredict and our Inherent Health® genetic tests, I believe Interleukin is well positioned for success in the emerging field of personalized medicine. I am excited to have recently joined the leadership team and I look forward to updating you on our continued progress throughout the year.”

First Quarter 2015 Financial Results

Total revenues for the quarter ended March 31, 2015, were $403,212 compared to $487,566 for the same period in 2014. The change in total revenue is largely attributable to a decrease in the Company’s genetic test kits returned for processing related to the Company’s sales through Access Business Group’s promotional product bundle program.

Research and development expenses for the quarter ended March 31, 2015, were $182,530 compared to $209,176 for the same period in 2014. The decrease is primarily attributable to staff reductions.

Selling, general and administrative expenses for the quarter ended March 31, 2015, were $1.6 million, compared to $1.5 million for the same period in 2014. The increase is primarily attributable to the search for a new Chief Executive Officer, partially offset by a decrease in consulting costs associated with the PerioPredict test and in salary due to lower headcount.

Net loss for the quarter ended March 31, 2015, was $1.8 million or $(0.01) per basic and diluted common share, compared to $1.7 million or $(0.01) per basic and diluted common share for the same period in 2014.

Cash and cash equivalents were $9.6 million as of March 31, 2015, which management believes is sufficient to fund the Company’s operations for at least the next twelve months.

First Quarter and Recent Highlights

• Partnered with Employee Benefit Consulting Group LLC (EBCG) to Expand Awareness and Adoption of PerioPredict: Interleukin and EBCG are working together to build awareness of and potential insurance coverage for PerioPredict, a powerful tool for personalizing patient care, among insurance carriers, benefit plans and employer groups, and to potentially incorporate the test into the design of risk-based benefit plans. EBCG has expertise in the U.S. insurance market with strong relationships with employers, insurance carriers, and health and wellness providers, and the Company believes they will be a valuable partner in enabling PerioPredict to achieve its full clinical and market potential.
• PerioPredict Featured in Genome Magazine: An article titled “Dentistry Gets Personalized” was published online in Genome magazine. The article includes an overview of PerioPredict and its utility in identifying a patient’s risk for severe periodontitis based on the individual’s genetic profile and PerioPredict’s role in advancing personalized medicine in dentistry.
• Provided Expert Commentary on Periodontology and Its Role in Personalized Medicine at Scientific and Industry Conferences: Dr. Kenneth S. Kornman, DDS, PhD, President and Chief Scientific Officer, gave a presentation at the Polish Society of Periodontology’s Spring Seminar, titled “The Role of Inflammation in Periodontal Disease and other Chronic Diseases.” At the National Health Policy Conference, sponsored by America’s Health Insurance Plans (AHIP) Dental Summit, he gave a presentation titled “The Medical-Dental Connections,” which covered the effects of moderate to severe periodontitis on whole body inflammation and its consequences, including certain diseases of aging such as cardiovascular disease.
• Presented Scientific Data at the 2015 IADR General Session & Exhibition: The Company presented a poster titled “IL1 Genotype and Obesity Characteristics Interact to Influence” at the 2015 International Association for Dental Research (IADR). The data demonstrate how risk patterns of IL-1 gene functional variants, shown to influence periodontal disease (PD) severity, affect the previously demonstrated association between PD progression and obesity characteristics in a longitudinal database. Interleukin believes that by identifying obese patients with risk patterns of IL-1 gene functional variants, dentists may be better able to identify patients who could potentially benefit from additional dental cleanings.
• Executed Collaboration Agreements with Isis Pharmaceuticals: Interleukin and Isis Pharmaceuticals entered into two collaboration agreements pursuant to which Interleukin will provide genetic testing services and kits to support two Isis clinical studies. The Isis collaboration is a key example of how Interleukin Genetics can work with pharmaceutical companies to employ complementary genetic tests designed to improve clinical outcomes.
• Key European Patent Granted Covering Inherent Health Weight Management Genetic Test: The granted patent, titled “Genetic Markers for Weight Management and Methods of Use Thereof,” has claims covering methods of determining a subject’s metabolic genotype and methods for selecting an appropriate therapeutic/dietary regimen or lifestyle recommendation based on the subject’s metabolic profile and susceptibility to adverse weight management issues. The patent grants coverage of the Weight Management Genetic Test into 2029.
• Presented Scientific Research Supporting Weight Management Genetic Test at the 2015 Experimental Biology Annual Meeting: Data from two late-breaking poster presentations, titled “Influence of Metabolic Genotyping on Weight Loss and Body Composition in Women Participating in a 6 Month Diet and Exercise Program; Preliminary Findings” and “Influence of Obesity-Related Genotype on Weight Loss Success and Body Composition Changes While Participating in a 3-Month Exercise and Weight Loss Program; Preliminary Findings,” support the utility of Interleukin’s Weight Management Genetic Test.
• Mark B. Carbeau appointed Chief Executive Officer and Director: Mr. Carbeau, a transformative healthcare leader and entrepreneur, brings more than three decades of business expertise in the life sciences industry, with a proven track record of building high growth diagnostic and pharmaceutical businesses. Dr. Kornman, who served as the President and CEO since August 2012, will continue to serve as President, Chief Scientific Officer and Director.

Conference Call and Webcast Information

Interleukin Genetics, Inc. will host a live conference call and webcast today at 8:30 a.m. EDT. To access the live call, dial 877-324-1976 (domestic) or 631-291-4550 (international). The live webcast will be available and archived following the call at the Investors section of the Company’s website at www.ilgenetics.com.

About PerioPredict®

The PerioPredict genetic test is quick, easy and painless and is performed by dentists during a routine exam or cleaning. PerioPredict measures variations in genes for Interleukin-1 (IL-1), a key mediator of inflammation, and identifies individuals who are at increased risk for moderate to severe periodontal disease. The PerioPredict test results provide essential information to the dental professional for assessing prevention and treatment options for their patients. PerioPredict is run solely in the Interleukin Genetics CLIA-certified lab in Waltham, MA. For more information, visit www.PerioPredict.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’ lead products include its proprietary PerioPredict genetic risk panel for periodontal disease and tooth loss susceptibility available through dentists, and the Inherent Health Weight Management Genetic Test that identifies the most effective diet 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 Amendments (CLIA). For more information, please visit www.ilgenetics.com.

Forward-Looking Statements

Certain statements contained herein are “forward-looking” statements, including statements that the Company will continue to place significant emphasis on increasing the adoption and awareness of PerioPredict, that the Company will work with its channel partners to redesign and implement coverage policies, and that cash and cash equivalents as of March 31, 2015, is sufficient to fund the Company’s operations for at least the next twelve months. 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, 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.
FINANCIAL HIGHLIGHTS
Balance Sheet Data			March 31,						December 31,
			2015						2014
Cash and cash equivalents			$	9,643,767					$	11,466,807
Total current assets			$	10,459,114					$	12,180,658
Total assets			$	11,486,373					$	13,267,121
Total current liabilities			$	3,908,980					$	4,011,650
Total liabilities			$	8,665,020					$	8,750,264
Total shareholders' equity/(deficit)			$	2,821,353					$	4,516,857
Total liabilities and shareholders' deficit			$	11,486,373					$	13,267,121
Statement of Operations Data			Three Months Ended Mar 31,
			2015						2014
Revenue:
Genetic testing service revenue			$	347,900					$	420,333
Other				55,312						67,233
Total revenue				403,212						487,566
Less Sales Allowance & Discount				-						-
Net revenue				403,212						487,566
Cost of Revenue				331,041						394,771
Gross profit (loss)				72,171						92,795
Operating costs and expenses:
Research and development				182,530						209,176
Selling, general and administrative				1,562,791						1,526,606
Amortization of intangibles				19,414						23,525
Total operating expenses				1,764,735						1,759,307
Loss from operations				(1,692,564	)					(1,666,512	)
Total other income and (expense), net				(150,631	)					1,993
Loss from continuing operations
before income taxes				(1,843,195	)					(1,664,519	)
Income taxes				-						-
Loss from continuing operations			$	(1,843,195	)				$	(1,664,519	)
Income from discontinued Operations,
net of income taxes				-						-
Net loss			$	(1,843,195	)				$	(1,664,519	)
Basic and diluted net (loss) income per
common share from:
Continuing operations			$	(0.01	)				$	(0.01	)
Discontinued operations				0.00						0.00
Net loss			$	(0.01	)				$	(0.01	)
Weighted average common shares outstanding,
basic and diluted				172,737,553						122,481,674

Investors:
Argot Partners
Matthew Haines, 212-600-1902
[email protected]
or
Susie Kim, 212-600-1902
[email protected]

Source: Interleukin Genetics, Inc.

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