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SCOLR Pharma, Inc. Announces Second Quarter 2011 Financial Results
Date:7/26/2011

x months ended June 30, 2011, compared to $389,000 for the same period in 2010. This decrease is due to a $190,000 reduction in royalty revenue from sales of nutritional products by Perrigo compared to the prior period. The Company recognized $100,000 in research and development revenue attributable to a contract with RedHill Biopharma Ltd. for certain development services in connection with the license by RedHill of SCOLR's CDT platforms for use in Ondansetron tablet formulations, as well as an $18,000 research and development from Syntrix Biopharma.

Marketing and selling expenses increased 23%, or $33,000, to $178,000 for the six months ended June 30, 2011, compared to $145,000 for the same period in 2010. This increase was primarily due to marketing and sales brokerage related expenses and the addition of a sales and marketing staff person anticipated to assist with advancement of our of nutritional products business.

Research and development expenses decreased 9%, or $52,000, to $544,000 for the six months ended June 30, 2011, compared to $596,000 for the same period in 2010. This decrease is due to the gain on sale of lab equipment of $120,000, reduction in personnel, and the reduction in operating expenses as a result of the elimination of lab activities.

General and administrative expenses increased 13%, or $152,000, to $1.3 million for the six months ended June 30, 2011, compared to approximately $1.2 million for the same period in 2010, primarily due to recognition of $61,000 in accelerated depreciation expense as a result of the reduction in the term of our headquarters lease. In addition, legal expenses increased $48,000.

Other income increased $101,000 to $94,000 for the six months ended June 30, 2011, compared to an expense of $7,000 for the comparable period in 2010. This increase is due to a change of $90,000 in unrealized gain on fair value of warrant to purchase common stock for the six months ended June 30, 2011 as comp
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