BOTHELL, Wash., Aug. 7 /PRNewswire-FirstCall/ -- SCOLR Pharma, Inc.
(NYSE Amex: DDD) today reported financial results for the three and
six months ended June 30, 2009. Dr. Bruce Morra, SCOLR Pharma's
President and CEO, said, "We continue to advance discussions with a
number of potential partners for our 12-hour controlled release
ibuprofen. These potential partners have been committing resources
to due diligence and preliminary negotiations of license terms. In
the nutraceutical arena, we are working with companies interested
in commercializing products we have developed for growing segments
of this field in both the US and international markets. We continue
to work with our investment bankers on potential strategic
transactions, including mergers and other business combinations
that could yield opportunities to increase shareholder value and
provide additional resources for us to develop our Controlled
Delivery Technology (CDT ) platforms. However, we are faced with a
difficult marketplace and many specialty pharmaceutical companies
competing for alliances with the more established pharmaceutical
and consumer product companies. Our operating strategy is to
preserve our capital by limiting clinical and development expenses
to our ibuprofen and pseudoephedrine lead products while also
supporting our existing alliances. We have made significant
reductions to our operating expenses so far this year and are
continuing to evaluate additional areas to further minimize our
burn rate." Total revenues, which consist of royalty revenue from
our collaboration agreements, decreased 17%, or $48,782 to $230,789
for the three months ended June 30, 2009, compared to $279,571 for
the same period in 2008. This decrease is primarily due to lower
royalty income from our relationship with Perrigo. Royalty income
increased 34%, or $59,017 to $230,789 in the three months ended
June 30, 2009, compared to $171,772 for the first quarter of 2009.
This increase is a result of higher sales activities of our
nutritional products by Perrigo. Royalty payments are based on
Perrigo's net profits from the sale of CDT-based products which
involve uncertainties and are difficult to predict. Total revenues
decreased 26%, or $142,565 to $402,561 for the six months ended
June 30, 2009, compared to $545,126 for the same period in 2008.
This decrease is primarily due to lower royalty income from our
relationship with Perrigo. Marketing and selling expenses decreased
79%, or $151,579 to $39,468 for the three months ended June 30,
2009, compared to $191,047 for the same period in 2008 and
decreased 66%, or $282,688 to $146,051 for the six months ended
June 30, 2009, compared to $428,739 for the same period in 2008.
These decreases are due to a reduction in personnel related
expenses due to reduction in personnel and lower advertising and
tradeshow expenses. In addition, commission expense decreased due
to lower royalty income. Research and development expenses
decreased 34%, or $403,818 to $793,503 for the three months ended
June 30, 2009, compared to $1.2 million for the same period in 2008
and decreased 22%, or $465,096 to $1.6 million for the six months
ended June 30, 2009, compared to $2.1 million for the same period
in 2008. These decreases were primarily due to our decision to
defer development activities on certain projects pending additional
funding and a reduction in personnel related expenses due to
personnel reductions. These decreases were offset by an expense
related to settlement of claims by a former employee. General and
administrative expenses decreased 8%, or $89,762 to $972,884 for
the three months ended June 30, 2009, compared to $1.1 million for
the same period in 2008 and decreased 7%, or $168,395, to $2.1
million for the six months ended June 30, 2009, compared to $2.3
million for the same period in 2008. These decreases were primarily
due to a decrease in personnel related expenses through personnel
reductions, a decrease in travel expenses, and a reduction in
insurance premium expense. These decreases were offset by an
increase in outside services related to investment banking
activities and an increase in legal expenses. Other income
decreased 98%, or $55,774 to $958 for the three months ended June
30, 2009, compared to $56,732 for the comparable period in 2008 and
decreased 95%, or $145,137 to $7,600 for the six months ended June
30, 2009, compared to $152,737 for the same period in 2008. These
decreases were due to a decrease in interest income due to lower
cash balances. Net loss decreased 26%, or $540,603 to $1.6 million
for the three months ended June 30, 2009, compared to $2.1 million
for the same period in 2008 and the net loss for the six months
ended June 30, 2009, decreased 15%, or $628,477 to $3.5 million,
compared with a net loss of $4.1 million for the same period in
2008. These decreases were primarily due to lower operating
expenses offset by lower revenues. Liquidity and Capital Resources
We had approximately $3.1 million in cash and cash equivalents, and
$473,711 in restricted cash as of June 30, 2009. Based on our
current operating plan, we anticipate that our existing cash and
cash equivalents, together with expected royalties from third
parties, will fund our operations until late 2009, assuming we do
not trigger additional obligations, including contractual severance
or lease obligations and unless unforeseen events arise that
negatively impact our liquidity. In the event we are unsuccessful
generating additional revenues or raising additional funds, we will
have to substantially reduce our operations to preserve capital or
seek bankruptcy protection or otherwise wind up our business. In
addition to our efforts to enter into alliances and licensing
agreements, we plan to continue to seek access to the capital
markets to fund our operations. We filed a shelf registration
statement in the amount of $40 million which was declared effective
by the Securities and Exchange Commission on November 25, 2008
under which we may offer from time-to-time, one or more offerings
of securities up to an aggregate public offering price of $40
million. However, the financial markets have been very difficult
for companies at our development stage and financial condition and
financing may not be available on favorable terms or at all.
Additionally, we have received notice from the NYSE Amex that we
are not in compliance with continued listing requirements. While we
have provided the NYSE Amex with a plan to regain compliance with
applicable listing standards, our inability to maintain listing of
our common stock on the NYSE Amex may further limit our ability to
access the capital markets. Any issuance of additional securities
would be extremely dilutive to our existing stockholders. About
SCOLR Pharma: Based in Bothell, Washington, SCOLR Pharma, Inc. is a
specialty pharmaceutical company. SCOLR Pharma's corporate
objective is to combine its formulation expertise and its patented
CDT platform to develop novel pharmaceutical, over-the-counter
(OTC), and nutritional products. Our CDT drug delivery platforms
are based on multiple issued and pending patents and other
intellectual property for the programmed release or enhanced
performance of active pharmaceutical ingredients and nutritional
products. For more information on SCOLR Pharma, please call
425.368.1050 or visit http://www.scolr.com/. This press release
contains forward-looking statements (statements which are not
historical facts) within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
involve risks and uncertainties, including activities, events or
developments that we expect, believe or anticipate will or may
occur in the future. A number of factors could cause actual results
to differ from those indicated in the forward-looking statements,
including our ability to raise additional funds or enter strategic
alliances, advance development of our potential products and
complete research and development, including pre-clinical and
clinical studies, the continuation of arrangements with partners
and customers, competition, government regulation and approvals,
and general economic conditions. For example, we may not obtain
regulatory approval for our products, which would materially impair
our ability to generate revenue, or we may not be able to raise
capital or generate revenue to finance our operations. Additional
assumptions, risks and uncertainties are described in detail in our
registration statements, reports and other filings with the
Securities and Exchange Commission. Such filings are available on
our website or at http://www.sec.gov/. You are cautioned that such
statements are not guarantees of future performance and that actual
results or developments may differ materially from those set forth
in the forward-looking statements. We undertake no obligation to
publicly update or revise forward-looking statements to reflect
subsequent events or circumstances. SCOLR Pharma, Inc. CONDENSED
BALANCE SHEETS June 30, 2009 December 31, (Unaudited) 2008
------------- ------------ ASSETS Current Assets Cash and cash
equivalents $3,128,839 $6,363,243 Accounts receivable 203,072
177,253 Interest and other receivables 4,822 1,157 Prepaid expenses
and other assets 350,631 286,539 ------- ------- Total current
assets 3,687,364 6,828,192 Property and Equipment - net of
accumulated amortization of $1,594,032 and $1,289,844, respectively
682,806 790,947 Intangible assets - net of accumulated amortization
of $473,307 and $465,724, respectively 560,046 557,639 Restricted
cash 473,711 473,711 ------- ------- $5,403,927 $8,650,489
========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current
Liabilities Accounts payable $75,949 $238,701 Accrued liabilities
660,179 668,694 Current portion of term loan - 87,850 --- ------
Total current liabilities 736,128 995,245 Deferred rent 284,530
310,010 Long-term portion of term loan - 23,269 --- ------ Total
liabilities 1,020,658 1,328,524 Commitments and Contingencies
Stockholders' Equity Preferred stock, authorized 5,000,000 shares,
$.01 par value, none issued or outstanding - - Common stock,
authorized 100,000,000 shares, $.001 par value 41,098,270 and
41,130,270 issued and outstanding as of June 30, 2009, and December
31, 2008, respectively 41,098 41,130 Additional paid-in capital
71,795,099 71,255,901 Accumulated deficit (67,452,928) (63,975,066)
----------- ----------- Total stockholders' equity 4,383,269
7,321,965 --------- --------- $5,403,927 $8,650,489 ==========
========== SCOLR Pharma, Inc. CONDENSED STATEMENTS OF OPERATIONS
(Unaudited) Three months ended Six months ended June 30, June 30,
------------------ ---------------- 2009 2008 2009 2008 ---- ----
---- ---- Revenues Royalty income $230,789 $279,571 $402,561
$545,126 -------- -------- -------- -------- Total revenues 230,789
279,571 402,561 545,126 Operating expenses Marketing and selling
39,468 191,047 146,051 428,739 Research and development 793,503
1,197,321 1,615,437 2,080,533 General and administrative 972,884
1,062,646 2,126,535 2,294,930 ------- --------- --------- ---------
Total operating expenses 1,805,855 2,451,014 3,888,023 4,804,202
--------- --------- --------- --------- Loss from operations
(1,575,066) (2,171,443) (3,485,462) (4,259,076) Other income
(expense) Interest income 2,040 59,353 11,112 159,671 Interest
expense (1,082) (3,859) (3,512) (8,172) Other - 1,238 - 1,238 ---
----- --- ----- Total other income 958 56,732 7,600 152,737 ---
------ ----- ------- Net loss
$(1,574,108)$(2,114,711)$(3,477,862)$(4,106,339) ===========
=========== =========== =========== Net loss per share, basic and
diluted $(0.04) $(0.05) $(0.08) $(0.10) ====== ====== ====== ======
Shares used in computing basic and diluted net loss per share
41,098,270 41,128,590 41,098,270 41,100,676 Contacts: Investor
Relations: Cameron Associates Kevin McGrath 212.245.4577
DATASOURCE: SCOLR Pharma, Inc. CONTACT: Investor Relations, Kevin
McGrath of Cameron Associates, +1-212-245-4577, Web Site:
http://www.scolr.com/
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