NEW YORK (GenomeWeb News) — Interleukin Genetics said after the close of market Thursday that its fourth quarter revenues nearly doubled year over year on increased royalty income and genetic testing revenue through the Amway Global sales channel.
Revenues for the three months ended Dec. 31, 2013, were $671,000 compared to $339,000 in the year-ago period. Genetic testing service revenue totaled $424,000 in the quarter, up from $317,000 in Q4 2012, while other revenues jumped to $247,000 from $22,000 in the prior-year period.
Research and development expenses dropped 29 percent to $212,000 from $302,000 in the same period a year ago, which the company attributed to a decrease in compensation, consulting, and clinical study costs.
Meantime, SG&A expenses shot up 152 percent to $2 million from $793,000 in Q4 2012. Interleukin said this was primarily due to marketing activities for its PerioPredict periodontal genetic test partially offset by decreases in sales commissions paid to Amway Global as part of a merchant channel and partner store agreement between the companies, as well as compensation expenses and depreciation.
Interleukin took a net loss of $1.9 million, or $.02 per share, compared to $1.2 million, or $.03 per share in the same period in 2012. The company's per share figure in Q4 2013 was based on approximately 122.4 million shares compared to 36.8 million shares in the year-ago quarter.
Cash and cash equivalents totaled $7.5 million as of Dec. 31.
For the full-year 2013, Interleukin recorded a 9 percent rise in revenues to $2.4 million from $2.2 million for the year ended Dec. 31, 2012. This increase was primarily attributable to increased royalty income and a slight uptick in genetic test processing revenues derived from sales of the company's Inherent Health brand of genetic tests through the Amway Global sales channel.
R&D expenses in 2013 dropped to $722,000 from $1.3 million in 2012, while SG&A expenses were $6.6 million in 2013 compared to $4.2 million in 2012. Interleukin noted that the SG&A increase was primarily attributable to increased expenses related to marketing activities for its PerioPredict periodontal genetic test, as well as increases in consulting and compensation costs, partially offset by lower sales commissions paid to Amway Global as part of the aforementioned merchant channel and partner store agreement.
Net loss for 2013 was $7.1 million, or $.08 per share, compared to a net loss of $5.1 million or $.14 per share in 2012. Interleukin's per share figure in 2013 was based on approximately 90.4 million shares compared to 36.8 million shares in 2012.
Interleukin noted that 2013 highlights included the launch of PerioPredict, its new generation of the PST genetic risk test for periodontal disease. This assay, launched in November, measures variations in the genes for interleukin-1, a key mediator of inflammation, and identifies individuals at increased risk for severe or progressive periodontal disease.
"Key infrastructure and systems are now in place and the first patients covered by the new risk-based insurance policies have started appearing in dental offices to receive PerioPredict," Interleukin CEO Kenneth Kornman said in a statement. "The upgraded automation of our CLIA-certified laboratory is fully operational, and we have begun receiving patient samples for testing. We are also fully prepared for the additional capacity we are expecting from the next phases of the launch. Our marketing team is in the field actively educating dental offices about how to use the PerioPredict test to enhance dental preventive care."