Archive for the ‘Interleukin Genetics Inc. ILI’ Category

Dutton Associates Featured Client: Interleukin Genetics, Inc. (AMEX: ILI)

Monday, August 25th, 2008

Interleukin Genetics, Inc., along with its subsidiaries, works to develop, acquire, and commercialize personalized health care products. Interleukin’s mission is to develop genetic tests and to make available therapeutic products that can help individuals improve and maintain their health through preventative measures. Interleukin genetics has a goal to provide the best available genetic information to help patients and consumers make intelligent lifestyle decisions related to nutrition, exercise, lifestyle habits, and healthcare practices aimed at preserving good health into old age.

The company wants to position itself at the forefront of the small but growing marketplace of personalized health. This segment is expected to experience rapid and widespread growth as genetic screening technologies become more available and affordable. This vision is grounded in the belief that the company can improve health outcomes by identifying individuals whose risk for certain chronic diseases is increased due to variants in one or more genes, and combining this knowledge with personalized interventions. A secondary belief is that there is a large and essentially unmet challenge for medicine to understand why some people are more prone than others to developing chronic diseases, and why some people respond to tentacle therapeutics better than others, or differ in their side effect profiles.

The company operates in two segments, Personalized Health and Consumer products.

The Personalized Health segment researches and develops genetic tests that leverage and target the role that genetics plays in determining variations in the inflammatory response in its effects on health and disease. The company has commercialized various genetic tests for periodontal disease risk assessment, cardiovascular risk assessment, and general nutrition assessment.

Its development programs focus on osteoporosis and weight management genetic risk assessment. Interleukin has thus far commercialized three genetic test panels for the consumer market, including the GENSONA Heart Health and General Nutrition genetic tests that are currently marketed solely by the company’s majority shareholder and marketing/manufacturing/distribution partner, Alticor. Several other test panels are in various stages of development for both the consumer and medical market channels, including tests for obesity, osteoporosis, osteoarthritis and gastric cancer.

The Consumer Products segment is focused on developing, selling, and marketing nutritional supplements and products into retail consumer channels. The bulk of Interleukin’s revenues are generated from the sale of nutritional supplements through subsidiary Alan James Group which was acquired in 2006. This segment sells branded nutritional products, including Ginsana, Ginkoba, and Venastat through food, drug, and mass retailers. Some of these products are among the leaders in their representative niche products or categories.

Alan James Group distributes these products through discount retailers at its largest (approximately 48% of sales) customer, Wal-Mart, as well as at drugstore chains, grocery stores and warehouse clubs. Interleukin Genetics has a strategic alliance with its partner Alticor, Inc. to develop and market genetic risk assessment tests, and nutritional and skin care products. This subsidiary may become more strategically important in the future, should the company need access into the mass retail market channel for genetic tests.

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