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Interleukin Genetics' Q2 Revenues Decline 29 Percent

NEW YORK (GenomeWeb) – Interleukin Genetics reported today that its revenues for the second quarter were $376,051 compared to $528,595 in the year-ago period, marking a 29 percent decrease.

The company attributed the revenue decrease during the three months ended June 30 to fewer weight management genetic test kits returned for processing through Access Business Group's promotional bundle program.

In Interleukin's Form 10-Q filed with the US Securities and Exchange Commission, it said that during the second quarter 16 percent of its revenues came from sales from ABG's bundle program, compared to 38 percent in the second quarter of 2014.

Interleukin's net loss in the second quarter was $2.2 million, or $.01 per share, compared to a net loss of $1.6 million, or $.01 per share, in the year ago period. The firm used 172.8 million shares to calculate its net loss on a per-share basis in the recently completed quarter, up from 122.5 million shares in the year-ago quarter.

In December, the firm issued about 50.1 million shares of its common stock and warrants to purchase another 50.1 million shares of its stock in order to raise $5 million in private financing.

The company's R&D expenses during the quarter rose 78 percent to $384,538 from $215,519 in the second quarter of 2014. Interleukin attributed the increase in R&D spend to yearly salary increases for existing staff and "other expenses relating to Dr. Kornman moving back into R&D expenses from SG&A costs in April 2015."

In April, Interleukin announced the appointment of Mark Carbeau, co-founder and CEO of Diagnostyx, as its new CEO. Carbeau took over for Kenneth Kornman, who resigned from the post he had held since August 2012. Kornman has remained at Interleukin as president, chief scientific officer, and as a director.

SG&A expenses in Q2 2015 rose 13 percent to $1.7 million compared to $1.5 million in 2014. Interleukin said this was largely due to the recruiting and hiring of Carbeau and to higher patent-related costs, which were partially offset with Kornman moving back into R&D. During the quarter, the company said it was granted a European patent, entitled “Genetic Markers for Weight Management and Methods of Use Thereof."

The company ended the quarter with cash and cash equivalents of $7.7 million. Interleukin's management said this amount is sufficient to fund the firm's operations for at least the next year.