In an effort to speed up progress on its genetic testing portfolio and its planned therapeutic work, Interleukin Genetics Inc. acquired consumer products firm Alan James Group LLC and secured $30 million in financing.

Interleukin, which had consulted with Alan James earlier this year on a potential commercial opportunity, decided to acquire the company and its assets for an up-front payment of $7 million cash and $500,000 in stock, plus an additional $1.5 million cash and about $9.25 million in stock if Alan James achieves certain earnings milestones between 2007 and 2009.

Alan James, of Boca Raton, Fla., which sells nutraceuticals and health products such as the Ginkoba, Ginsana and Venastat brands, will operate as a wholly owned subsidiary of Interleukin.

The deal is designed to bring Interleukin additional revenue that will be "immediately accretive to our earnings" and expand its reach into both consumer and professional health care markets, said Interleukin's Kenneth Kornman during a conference call. Kornman, who served as president and CEO of the Waltham, Mass.-based company, will serve as president and chief scientific officer of the combined company and assume a position on the board.

Tim Richerson, formerly the president of Alan James, accepted the position of CEO. Philip Reilly stepped down as chairman and was succeeded by Thomas Curran.

Kornman founded Interleukin in 1986 to focus on the role genetics play in inflammation and age-related diseases and to develop predictive and preventive solutions such as gene risk-assessment tests. The company's goal has been to take its expertise in genetics and move into the pharmacogenomics and therapeutics space, and Kornman assured shareholders that "our strategy remains unchanged."

In fact, the $30 million cash infusion will allow Interleukin to "advance our products more aggressively," he added.

As part of the Alan James transaction, Interleukin's majority shareholder, Ada, Mich.-based Alticor Inc., agreed to provide $15.6 million through the private placement of 2.75 million shares of Interleukin priced at $5.68 each. Alticor also committed to purchase up to an additional $14.4 million, in a credit facility, though Interleukin first will offer those shares to existing stockholders in a planned rights offering to be conducted "as soon as practicable," Kornman said.

Since 2003, Interleukin has been working with Alticor, a consumer products distributor that has funded much of the research and development of tests designed to identify genetic risk factors.

Earlier this year, Interleukin signed purchase agreements with an Alticor subsidiary to sell two DNA-based risk-assessment tests: the heart health genetic test, which is aimed at identifying variants in the interleukin 1A or 1B genes, and the general nutrition test, which analyzes variants in two genes associated with vitamin B metabolism and four associated with oxidative stress management.

Kornman estimated that the company has about $29 million in available cash, which will be invested into research and development, new product development and efforts to expand business channels.

"We'll broaden development of our predictive and preventive product portfolio," Kornman said, "and leverage our scientific capabilities across laboratory services, professional health care and development of therapeutic and pharmacogenomic products."

Importantly, he added, the deal is expected to bring in additional revenue of between $2.5 million to $3 million to Interleukin for the year. The company raised its 2006 earnings guidance to the range of $5.5 million to $7 million.

"And we expect additional earnings over the next three to five years," he said.

For the second quarter, Interleukin reported a net loss of $923,000, or 4 cents per share.

Its stock (AMEX:ILI) closed at $5.70 Friday, up 66 cents, or 13.1 percent.