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SCOLR Pharma, Inc. Reports Second Quarter 2008 Financial Results
Date:8/7/2008

, decreased 34%, or $142,485 to $279,571 for the three months ended June 30, 2008, compared to $422,056 for the same period in 2007. This decrease is primarily due to lower royalty income from our relationship with Perrigo. However, royalty income increased 5%, or $14,016 to $279,571 in the three months ended June 30, 2008, compared to $265,555 for the first quarter of 2008 as Perrigo increased sales to a major national retailer.

Total revenues of $545,126 decreased 65% or $996,849 for the six months ended June 30, 2008, compared to $1.5 million for the same period in 2007. The higher total revenues for 2007 were primarily due to approximately $795,000 of research and development fees and licensing revenues from an agreement terminated in the first quarter of 2007.

Net loss increased less than 1%, or $1,380 to $2.1 million for the three months ended June 30, 2008, compared to $2.1 million for the same period in 2007. Net loss for the six months ended June 30, 2008, increased 2%, or $98,429 to $4.1 million compared with a net loss of $4.0 million for the same period in 2007. The increased losses were primarily due to lower revenues and other income, offset by lower operating costs.

Total operating expenses for the second quarter of 2008 decreased 7% to $2.5 million compared to $2.7 million for the same period in 2007. Operating expenses decreased 19% to $4.8 million for the six months ended June 30, 2008 from $5.9 million for the same period in 2007. The decreases in operating expenses were primarily due to reductions in advertising and tradeshow expense, research and development, and outside services.

In May 2008, we entered into an agreement to terminate the existing lease of our corporate facility for consideration of $4.1 million. Under the terms of the agreement, $1.0 million was paid upon execution of the agreement and the remaining $3.1 million is due when we vacate the premises, at which time the amount will be recognized as a gain
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SOURCE SCOLR Pharma, Inc.
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