Interleukin Genetics Enters Into New Agreements and Amends Agreements with Alticor
02/28/2006
INTERLEUKIN GENETICS ENTERS INTO NEW AGREEMENTS AND AMENDS AGREEMENTS WITH ALTICOR
Waltham, MA, February 28, 2006 -- Interleukin Genetics, Inc. (AMEX:ILI) reported today that it has signed two new Purchase Agreements for genetic tests with Access Business Group International LLC, a subsidiary of Alticor Inc. Interleukin also reported that it has amended its Note Purchase and Stock Purchase Agreements with Pyxis Innovations, Inc., another affiliate of Alticor, to provide Interleukin with access to up to an additional $3.5 million of borrowing for general working capital purposes.
The two new Purchase Agreements cover two genetic tests that Interleukin Genetics developed on behalf of Alticor. These are: 1) the heart health genetic test, which analyzes DNA variations in the Interleukin-1A and 1B genes to identify whether an individual may have a predisposition for chronically elevated measures of inflammation and an increased risk for heart disease; and 2) the general nutrition genetic test, which analyzes DNA variations in two genes that affect Vitamin B metabolism and four genes that are involved in responding to oxidative stress. These tests will be marketed exclusively through Quixtar, a subsidiary of Alticor, under Quixtar’s Gensona™ brand.
The Purchase Agreement for Interleukin’s heart health genetic test has a term of two years and becomes effective March 23, 2006, upon the expiration of the current Distribution Agreement between the parties. The Purchase Agreement provides that $0.6 million of the $2.0 million prepayment under the Distribution Agreement will be applied to purchases made under the new agreement. The term of the Purchase Agreement for Interleukin’s general nutrition genetic test is through January 2008.
The Note Purchase Agreement was amended to provide Interleukin with access to an additional $2.0 million of working capital borrowing at any time prior to April 1, 2007. Any amounts borrowed will bear interest at prime plus 1%, require quarterly interest payments and be due five years from the date of borrowing. The Stock Purchase Agreement was amended to remove certain restrictions on an existing $1.5 million line of credit so that it can be used for general working capital purposes.
“We are most pleased to have executed these agreements with the Alticor companies,” said Philip R. Reilly, MD, JD, CEO of Interleukin Genetics. “They demonstrate Alticor’s continued support as the two companies work to develop the field of personalized health.”
About Interleukin
Interleukin Genetics is a biotechnology company focused on developing personalized health products, particularly in regard to modulating the role of inflammation in chronic disease. The company is developing or plans to develop risk assessment tests, pharmacogenetic tests, and nutritional and therapeutic products keyed to genetic variations in people. Interleukin's current programs focus on cardiovascular disease, osteoporosis, periodontal disease, and weight management. For more information about Interleukin and its ongoing programs, please visit http://www.ilgenetics.com.
Certain statements contained herein are “forward-looking” statements including statements regarding our ability to develop diagnostic, personalized nutritional and therapeutic products to prevent or treat diseases of inflammation and other genetic variations, our ability to screen nutritional compounds for their effects on inflammatory responses and other genetic variations, given specific genetic patterns and our ability to make progress in advancing our core technologies. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, our ability to develop diagnostic, personalized nutritional and therapeutic products to prevent or treat diseases of inflammation and other genetically influenced conditions, our ability to screen nutritional compounds for their effects on inflammatory responses, our ability to complete all of our key milestones with regard to programs funded by our strategic partner, our ability to make progress in advancing our core technologies and our ability to launch new commercial products. It also includes risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2004 filed with the Securities and Exchange Commission, as amended, our quarterly reports on Form 10-Q and in other filings made by us with the Securities and Exchange Commission. We disclaim any obligation or intention to update these forward-looking statements.
For Interleukin Genetics:
John J. McCabe