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SCOLR Pharma, Inc. First Quarter 2011 Financial Results
Date:5/9/2011

ter ended March 31, 2011 were $184,000, an 11% increase, compared to $166,000 for the same period in 2010. This increase is due to the recognition of $100,000 in revenue attributable to our contract with RedHill Biopharma Ltd. for certain development services in connection with the license by RedHill of our CDT platforms for use in Ondansetron tablet formulations. Off-setting this increase is a $75,000 reduction in royalty revenue from sales of SCOLR nutritional products by Perrigo Company ("Perrigo"). The Company receives royalty payments based on Perrigo's net profits derived from the sales of products subject to the license agreement.  As previously reported, during the fourth quarter of 2010, the Company was informed by Perrigo that some retail accounts will no longer carry certain Perrigo products.  The Company expects revenues from Perrigo to decrease substantially as remaining product inventory is sold through during the first half of 2011. 

For the quarter ended March 31, 2011, the Company's marketing and selling expenses increased 112%, or $66,000 to $125,000 for the three months ended March 31, 2011, compared to $59,000 for the same period in 2010.  

Research and development expenses increased 90%, or $307,000, to $647,000 for the three months ended March 31, 2011, compared to $340,000 for the same period in 2010.  This increase is due primarily to advancement during the first quarter of 2011 of the "actual use" study required to be completed in advance of regulatory submission of our ibuprofen lead product, research and development work for RedHill, and formulation work related to nutritional products.

Net loss increased 16%, or $171,000 to $1,222,000 for the three months ended March 31, 2011, compared to $1,051,000 for the same period in 2010. The increase in net loss reflects higher research and development expenses primarily associated with clinical supplies and preparation activities related to the ibupr
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