By a News Reporter-Staff News Editor at Cardiovascular Week -- Interleukin Genetics, Inc. (OTCQB:ILIU) issued financial and operational results for its fiscal second quarter ended June 30, 2014 (see also Interleukin Genetics, Inc.).
"The utilization of our PerioPredict™ genetic test in the dental office is progressing well as a result of the education approach we have used," said Dr. Kenneth Kornman, Chief Executive Officer of Interleukin Genetics. "Adoption appears to be especially high at dental offices where ten or more patients have insurance plans that cover the test. This is important information for us to have as we continue our work supporting the education of dental offices about how to use the test to enhance dental preventative care. We continue to actively pursue new payer partners and work toward expanding the network of insurers who offer coverage for a risk-based preventative dental program."
Dr. Kornman continued: "We are also pleased to report the publication of new study data demonstrating the ability of Interleukin's proprietary Heart Health Genetic Test to accurately predict future cardiovascular events. These data, which were published in the Journal of the American College of Cardiology, build upon the body of scientific evidence that supports the use of the Heart Health test to inform and improve a physician's clinical decision-making for patients with cardiovascular disease." Second Quarter 2014 Financial Results Revenues for the quarter ended June 30, 2014 were $529,000, compared to $852,000 for the same period in 2013. The decline in total revenue is primarily attributable to higher revenues in the 2013 period due to a promotion, by our partner Amway, resulting in a larger volume of pre-paid test kits returned for processing. The decrease in genetic testing revenue was partially offset by breakage revenue related to unredeemed test kits recognized from deferred revenue and recorded in the second quarter of 2014, and increased royalty revenue.
Research and development expenses for the quarter ended June 30, 2014 were $216,000, compared to $188,000 for the same period in 2013. The increase is primarily attributable to increased compensation.
Selling, general and administrative expenses for the quarter ended June 30, 2014 were $1.5 million, compared to $1.6 million for the same period in 2013. The decrease is primarily attributable to decreased expenses related to marketing activities for our PerioPredict™ periodontal genetic test, decreased consulting and professional expenses and lower sales commissions paid to Amway Global as part of our Merchant Channel and Partner Store Agreement, partially offset by increased compensation expenses.
Net loss for the quarter ended June 30, 2014 was $1.6 million, or $(0.01) per basic and diluted common share, compared to $1.8 million or $(0.02) per basic and diluted common share for the same period in 2013.
Cash and cash equivalents were $4.2 million as of June 30, 2014. Second Quarter 2014 Highlights Published Scientific Data Demonstrating the Ability of Interleukin's Proprietary Heart Health Genetic Test to Predict for Cardiovascular Disease in the Journal of the American College of Cardiology: In May, researchers from the University of California at San Diego reported (Tsimikas et al. 2014) that Interleukin's IL-1 genetic test for heart disease was an independent predictor of coronary artery disease. In addition, patients who were positive for the IL-1 genetic test and were above the median level of oxidized blood phospholipids exhibited cardiovascular disease earlier and had worse 4-year event-free survival (death, myocardial infarction, stroke, and need for revascularization) compared with other groups. Secured Approval in New York State to Offer PerioPredict™: In April, the Company announced receipt of conditional approval from the New York State Department of Health to offer, process and report the results of the PerioPredict™ Genetic Risk Test for periodontal disease. Conditional approval is obtained when no significant concerns are identified during review, is subject to demonstration of ongoing compliance with New York State regulations and standards, and is the approval designation prior to notification of full approval. The State of New York is the only U.S. state that requires an independent regulatory review process including technical validation with clinical utility for laboratory developed tests run within a CLIA certified laboratory. As a result of New York State approval the PerioPredict™ test is now available to dental providers and their patients in all 50 U.S. states. Published Additional Evidence Supporting PerioPredict in Journal of Periodontal Research: In April, the Company announced publication of its research study titled "Association of interleukin-1 gene variations with moderate to severe chronic periodontitis in multiple ethnicities" in the Journal of Periodontal Research. Results of the study validated the PerioPredict™ genetic risk test in multiple ethnic populations and provided added value beyond the standard predictive risk factors for severe periodontal disease. Conference Call and Webcast Information Interleukin Genetics, Inc. will host a live conference call and webcast today at 4:30 p.m. EDT. To access the live call, dial 877-324-1976 (domestic) or 631-291-4550 (international). The live webcast will be available at the Investors section of the Company's website, www.ilgenetics.com.
Keywords for this news article include: Cytokines, Dentistry, Cardiology, Periodontal Research, Investment and Finance, Cardiovascular Diseases, Interleukin Genetics Inc..
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