Interleukin sells genetic tests to Alticor, obtains $3.5 million of funding

By Angela McDaniels

Seattle, Feb. 28 - Interleukin Genetics Inc. has signed two new purchase agreements for genetic tests with Access Business Group International LLC, according to a company news release.

Interleukin also amended its note purchase and stock purchase agreements with Pyxis Innovations Inc. to provide Interleukin with access to up to an additional $3.5 million of funding for general working capital purposes.

Access Business Group and Pyxis Innovations are subsidiaries of Alticor Inc.

The purchase agreements cover two genetic tests that Interleukin Genetics developed for Alticor, including a heart health genetic test, which analyzes DNA variations to identify whether an individual may have an increased risk for heart disease, and 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.

Interleukin said the tests will be marketed exclusively through Quixtar, an additional subsidiary of Alticor, under Quixtar's Gensona brand.

The purchase agreement for Interleukin for the tests has a term of two years and becomes effective on March 23 upon the expiration of the current distribution agreement between the parties.

The purchase agreement requires that $600,000 of the $2 million prepayment under the distribution agreement will be applied to purchases made under the new agreement, according to the release.

The note purchase agreement was amended to provide Interleukin with access to an additional $2 million of working capital borrowings at any time prior to April 1, 2007. Any amounts borrowed will bear interest at Prime rate plus 1%, require quarterly interest payments and be due five years from the date of borrowing.

The stock purchase agreement was amended to remove restrictions on an existing $1.5 million line of credit so that it can be used for general working capital purposes, the company said.

Interleukin Genetics is a biotechnology company based in Waltham, Mass., that develops risk assessment tests, pharmacogenetic tests and nutritional and therapeutic products keyed to genetic variations in people.

Alticor is a privately held company based in Ada, Mich., that provides products and manufacturing and logistics services through its subsidiaries.

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