BOTHELL, Wash., Dec 01, 2009 /PRNewswire-FirstCall via COMTEX/ -- SCOLR Pharma, Inc. announced that on November 20, 2009 it licensed to Chrono Nutraceuticals LLC exclusive rights in Canada to manufacture and sell four extended release dietary supplements using SCOLR's proprietary CDT(R) drug delivery platform. In addition, SCOLR granted Chrono rights to manufacture and sell two of such products in the United States on a nonexclusive basis. Chrono paid SCOLR $25,000 upon execution of the agreement and agreed to pay SCOLR two additional payments of $87,500 each upon specified events related to regulatory approval for sales in Canada, but no later than April 30, 2010. Chrono also has the right to terminate the agreement and receive a refund of amounts paid to SCOLR within 90 days of the execution of the agreement under certain conditions related to such regulatory approvals. The agreement provides for royalties of 10% of net sales of the products covered by the license, and for minimum royalties of $125,000 per quarter commencing during the first quarter of 2010 (prorated based on commencement of sales) and increasing to $210,000 per quarter for 2011. The agreement is for a term of ten years with automatic renewal for additional five year terms provided that all payments are current.
Stephen J. Turner, SCOLR Pharma, Inc.'s Chief Executive Officer said, "The agreement with Chrono reflects our efforts to expand revenues from dietary supplement products and is indicative of the types of alliances we hope to add to support our future growth and operations. This agreement is an important step in increasing revenue sources to enable us to fund our operations. We continue to expand our product line and work with partners to open other distribution channels. At the same time we continue to pursue licensing opportunities and other strategic partnerships to help fund our development activities while maintaining tight control over expenses."
The Company is continuing discussions to license its extended release ibuprofen. In addition, the Company is advancing discussions with potential partners as it pursues commercialization of its extended-release pseudoephedrine product. As previously reported, in August the Company amended the ANDA relating to its extended release pseudoephedrine submission to the FDA in response to requests for additional information from the FDA.
On November 30, 2009, SCOLR announced that the NYSE Amex LLC, notified the Company that it had accepted the Company's plan to comply with its previously disclosed listing deficiency under Section 1003(a)(iv) of the Exchange Company Guide. As reported, the Company has until March 15, 2010 and December 27, 2010 to comply with various deficiencies cited by the Exchange. There can be no assurance that the Company will be able to make progress consistent with its plan to regain compliance with the Exchange's continued listing standards in a timely manner, or at all.
About SCOLR Pharma:
Based in Bothell, Washington, SCOLR Pharma, Inc. is a specialty pharmaceutical company. SCOLR Pharma's corporate objective is to combine its formulation expertise and its patented CDT platform to develop novel pharmaceutical, over-the-counter (OTC), and nutritional products. Our CDT drug delivery platforms are based on multiple issued and pending patents and other intellectual property for the programmed release or enhanced performance of active pharmaceutical ingredients and nutritional products. For more information on SCOLR Pharma, please call 425.368.1050 or visit http://www.scolr.com/.
This press release contains forward-looking statements (statements which are not historical facts) within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including activities, events or developments that we expect, believe or anticipate 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 our ability to regain compliance with NYSE Amex listing standards in accordance with our plan, our ability to advance development of our potential products and complete research and development, our ability to raise additional funds or enter strategic alliances, the continuation of arrangements with our product development partners and customers, competition, government regulation and approvals, and general economic conditions. Additional assumptions, risks and uncertainties are described in detail in our registration statements, reports and other filings with the Securities and Exchange Commission. Such filings are available on our website or at www.sec.gov. You 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. We undertake no obligation to publicly update or revise forward-looking statements to reflect subsequent events or circumstances.