NEW YORK, March 16 (GenomeWeb News) - Building on a year-old partnership with Alticor, the parent company of Amway, Interleukin Genetics today said it has signed a distribution agreement for its genetic tests with another Alticor subsidiary to secure an additional $2 million in capital.
Interleukin signed a distribution agreement for its DNA-based risk assessment tests with Access Business Group International LLC, a subsidiary of Alticor that engages in "development, sourcing, manufacture, and distribution of Amway-branded products," according to the Access Business Group website.
This agreement is considered a "milestone" under a strategic alliance that Interleukin and Alticor initiated last March, under which Interleukin received equity funding of around $16 million in stock, credit, and cash.
According to Interleukin, the criteria for the the milestone required that it enter into a genetic testing agreement "with one or more customers of such size that the projected internal rate of return with respect to the project is at least 20 percent with a payback period of three years or less."
The distribution agreement will net Interleukin an additional $2 million capital contribution from Alticor with no additional shares being issued to Alticor.
Interleukin said it is planning to launch a genetic testing product next year.