NEW YORK (GenomeWeb) - Interleukin Genetics yesterday reported after the close of the market a 59 percent decrease in third quarter revenues.
For the three months ended Sept. 30, the Waltham, Massachusetts-based genetic testing firm tallied total revenues of $295,998, compared to $472,151 in the prior-year period.
In a statement, the firm said the dip in revenues was due to a decrease in the number of genetic test kits returned for processing. CEO Mark Carbeau said that since joining the firm last quarter, he has focused on developing a strategic and operational plan to drive market adoption of the firm's PerioPredict genetic test for inflammation. He added that the firm would use its expertise and intellectual property related to interleukin-1 genetics to develop next-generation genetic tests.
"We are exploring the utility of our test panels to help physicians better manage cardiovascular disease patients, and are in discussions with pharmaceutical and biotech companies to provide clinical testing and to develop companion diagnostics for drug candidates in this area," he said.
However, on Nov. 4 the US Food and Drug Administration sent the firm an untitled letter asking for more information about the firm's direct-to-consumer offerings of the PerioPredict Genetic Test, Osteoarthritis Genetic Test, and Weight Management Genetic Test, which the FDA considers to be medical devices.
Interleukin's net loss in the third quarter was $2 million, or $.01 per share, compared to a net loss of $1.5 million, or $.01 per share, in Q3 2014.
The firm's R&D expenses jumped 70 percent year over year to $411,902 from $242,142 in the third quarter of 2014. Interleukin attributed the increase to annual salary increases for existing staff and expenses related to former CEO Kenneth Kornman assuming the position of CSO in April 2015, moving him into R&D expenses from SG&A costs.
Its SG&A expenses in Q3 2015 rose 8 percent to $1.4 million compared to $1.3 million in 2014. Interleukin said this was due partly to higher consulting costs and employee-related expenses including compensation.
The company ended the quarter with cash and cash equivalents of $6.3 million. Interleukin's management said this amount is sufficient to fund the firm's operations for at least the next year.