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SCOLR Pharma, Inc. Reports Fourth Quarter 2008 Financial Results
Date:3/11/2009

31, 2008, compared to $1.2 million in 2007. This decrease was primarily due to lower royalty income from Perrigo and termination of our relationship with Nutraceutix.

SCOLR has continued to make significant improvements to its operating efficiencies as compared to a year ago. For the year ended December 31, 2008, the Company's marketing and selling expenses decreased 28%, or $264,021, to $672,675, compared to $936,696 in 2007. General and administrative expenses decreased 4%, or $198,259, to $4.4 million for the year ended December 31, 2008, compared to $4.6 million in 2007.

Research and development expenses decreased 19%, or $1.5 million, to $6.3 million for the year ended December 31, 2008, compared to $7.8 million in 2007.

Net loss decreased 42%, or $4.5 million, to $6.1 million for the year ended December 31, 2008, compared to $10.6 million in 2007. This decrease was primarily due to the gain of $4.1 million from the termination of the lease of our corporate facility in 2008.

SCOLR Pharma had approximately $6.4 million in cash and cash equivalents, and $473,711 in restricted cash as of December 31, 2008. SCOLR anticipates that, based on its current operating plan, its existing cash and cash equivalents, together with expected royalties from third parties, will be sufficient to fund its operations until late 2009. SCOLR's current operating plan reflects reductions in personnel, marketing and other operating expenses implemented in 2008. SCOLR is actively managing its liquidity by limiting clinical and development expenses to its lead products and supporting existing alliances and collaborations. SCOLR has deferred all significant expenditures on new projects pending additional financing or partnership support. SCOLR is pursuing new partnerships as well as collaborations, and exploring other financing options that would provide the Company with additional funding for its operations. These
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