REDMOND, Wash.--April 14, 2003--SCOLR, Inc. (OTCBB:SCLL) announced today that a third national chain store will offer CDT(TM) glucosamine & chondroitin in a 12-hour formulation of 500mg. glucosamine with 400mg. chondroitin tablets.
This recent agreement brings the total number of retail outlets to more than 6,000 which will sell SCLL's patented product under their respective private, store brand labels. The third retailer, who declined to be identified to protect competitive marketing, expects to have product on the shelves early in Q3 this year.
Glucosamine is used in the treatment of osteoarthritis. According to Frost & Sullivan, national sales of glucosamine increased from estimates of $630 million in 1999 to an estimated projection of $1.58 billion in 2001. SCOLR's CDT(TM) glucosamine & chondroitin provides the consumer with the convenience of a once-daily dosage, by extending the release of glucosamine in the gastro-intestinal tract.
"This most recent agreement comes just a few months after we signed the first two retailers for CDT(TM) glucosamine & chondroitin. The initial market availability of this product in Wal-Mart and Trader Joe's national retail chains is creating the momentum and demand for the product," said David Howard, President and CEO of SCOLR.
"We believe that the important manufacturing advantages provided by our CDT(TM) technologies and platforms will result in additional partnerships to develop additional unique products utilizing these platforms. As set forth in our business strategy, these early non-pharmaceutical royalty streams, along with the contemplated divestiture of probiotic assets, are expected to provide some relief for our growing capital needs as we execute our business plan," stated Howard.
Stephen J. Turner, SCOLR Director of Product Development, noted: "There are a number of factors that are influencing retailers to consider replacing immediate release products or adding controlled release products as premium niche items; our patented CDT(TM) technologies have no payload restrictions and consist of a 2-step process utilizing GRAS (Generally Regarded As Safe) ingredients and excipients. This results in lower manufacturing costs very comparable to immediate release products. In addition, once daily dosage products have better patient compliance, and can result in better customer satisfaction which can result in better sell-through for the retailer."
The National Institutes of Health (NIH) is currently undertaking a $6.6 million glucosamine trial scheduled for completion in 2005. The trial calls for a three times a day dosing regime for the subjects. Glucosamine is a Biopharmaceutical Classification System (BCS) Class1 compound, having highly permeable and soluble characteristics, and has been shown to have rapid clearance from the bloodstream. BCS Class1 drugs and compounds have been shown to benefit from the addition of a method of controlled release to help decrease the amount of the ingredient lost through the body's waste elimination processes.
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.