REDMOND, Wash.--Feb. 18, 2003--SCOLR, Inc. (OTCBB:SCLL) announced today that the Company is preparing to ship BIO-tract(TM) G.I. (patent pending), the industry's first targeted-delivery probiotic product, to its first-to-market customer. The name of the customer was not disclosed in order to preserve its competitive advantage.
Initial deliveries of the tablets are scheduled to coincide with the customer's product roll-out in April. Probiotics, such as Lactobacillus acidophilus, Bifidum bacterium, and others, are beneficial microorganisms that populate the intestinal tract and are vital to maintaining good digestive health.
As a drug delivery company, SCOLR takes existing products and improves them applying its broad platform of patented technology. BIO-tract(TM) G.I. was fully developed by SCOLR over the past two years, utilizing its extensive knowledge and capabilities in probiotic fermentation and drug delivery systems. The unique, patent-pending SCBIORx(TM) delivery technology used in BIO-tract(TM) G.I. was developed as an extension of SCOLR's expertise in formulating modified release products within its suite of three patented CDT(TM) Controlled Delivery Technology platforms.
The BIO-tract(TM) product was designed to overcome significant obstacles preventing optimum delivery of the beneficial microorganisms to the gastrointestinal (GI) tract. Probiotic organisms are fragile and generally have a difficult time surviving stomach acids. In-vitro experiments demonstrate that BIO-tract(TM) can survive a pH of 1.0-1.5 for two hours before releasing the organisms into the intestinal tract, and, unlike other products, delivers the live organisms over a span of 10 hours, allowing the living bacteria to populate the GI tract and help to competitively exclude pathogenic organisms from attaching and colonizing the intestines.
According to Stephen J. Turner, Director of Product Development for SCOLR, "We presented BIO-tract(TM) G.I. (in an abstract entitled: Novel Design of a Monolithic Oral Controlled-Release Delivery Formulation for Probiotic Organism) at the 2002 AAPS (American Association of Pharmaceutical Scientists) annual meeting in Toronto last November and we were pleased with the high level of interest it generated. More recently, in January we were gratified to learn that we had been awarded an NBJ (Nutrition Business Journal) Product Merit Award for BIO-tract(TM), providing further validation of and recognition for what we have achieved with this innovative product."
David T. Howard, President and CEO of SCOLR stated, "This is the classic example of what we do. We take proven products and make them better so that the consumer is buying a better product and the marketer of the product can distinguish its product from all others. Once again, SCOLR has been first to introduce a major new delivery platform into a growth market and to answer unsatisfied market needs through innovative technology.
"Our unique SCBIORx(TM) delivery system for probiotics builds upon the solid market franchise that SCOLR created with LiveBac(R), the first room temperature stable probiotic introduced in the 1990s to ensure probiotic viability and potency on the retailers shelves. With the advantage of SCBIORx technology, our BIO-tract(TM) G.I. goes beyond LiveBac(R) -- offering the same room temperature stability plus the unique ability to deliver the probiotic organism to the optimal site in the GI tract to maximize the benefits which consumers seek from probiotic supplementation," said Howard.
"We believe that BIO-tract(TM) G.I has the potential to double our current $2.5 million LiveBac(R) sales in the U.S. and provide SCOLR with additional reach in international markets where we are currently negotiating alliances to commercialize this new concept in those rapidly growing probiotic markets.
"We are pleased with our on-going progress to provide the nutritional, OTC and pharmaceutical industries with science-based, innovative products. We continue to collaborate with companies seeking innovative delivery solutions which offer their products a commercial advantage. In an increasingly competitive marketplace, the ability to garner attention over multiple competitors often relies on the edge afforded when superior technology is backed with targeted marketing," Howard concluded.
Based in Redmond, Washington, SCOLR, Inc. (formerly Nutraceutix, Inc.) is a biopharmaceutical company leveraging specialized knowledge, proprietary and patented products and technologies, such as the patented CDT(TM) Controlled Delivery Technology platform, to introduce distinctive and novel OTC products, prescription drugs and dietary supplements. SCOLR currently operates in two business segments -- drug delivery and nutraceuticals. Its CDT(TM) drug delivery platform provides distinctive products with tangible benefits for the consumer and competitive commercial advantages for licensees. Established partnerships with pharmaceutical, OTC and natural products industry companies enable SCOLR to co-develop new products and to add value and protection to existing product franchises. For more information on SCOLR, please call 1-800/548-3222 or visit http://www.SCOLR.com.
Except for any historical information, the matters discussed in this press release contain forward-looking statements within the meaning of Section 37A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve risks and uncertainties, including activities, events or developments that the company expects, believes or anticipates 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 the Company's ability to continue to successfully market and provide its products and services and maintain their effectiveness, the continuation of the arrangements with the Company's product development partners, the ability of the Company to meet its financial projections, and general economic conditions. Such statements are subject to a number of assumptions, risks and uncertainties. Readers 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. The Company undertakes no obligation to publicly update or revise forward-looking statements whether as a result of new information or otherwise.