Scolr cuts losses on reduced R&D spending, Q2 revs down
The US firm, a developer of controlled-release formulations and delivery tech, posted an operating loss for the three months to June 30 of $691,000 (€539,000), a reduction of 56 per cent on the deficit in the year-earlier quarter.
Scolr said that the reduction was due to lower overall operating expenses, which fell around 50 per cent to $914,000 primarily as a result of a 67 per cent drop in R&D spending in the quarter.
This, the firm explained, was driven by “reductions in personnel and other expenses reflecting the deferral of development activities for our product candidates.”
On a less positive note, revenue for the quarter fell $80,000 to $223m continuing the trend seen in the previous three months and leaving Scolr with a 3 per cent decline in sales the first six months of 2010.
Scolr CEO Stephen Turner was upbeat despite the revenue reduction, explaining that: “We continue to be encouraged with the progress we are making on our various business objectives.
These business objectives include the submission an SPA for an acute use study (AUS) of its 12-hour ibuprofen formulation and the filing on an abbreviated new drug application (ANDA) for its pseudoephedrine product.
Turner said that: "For our ibuprofen program, completion of the SPA will position SCOLR to prepare to conduct the AUS required by the FDA as a pre-requisite for regulatory submission.
He added that Scolr does not anticipate any issues with the US Food and Drug Administration’s (FDA) ongoing review of its pseudoephedrine drug that will “affect our strategy for commercialization of the product.”
Beyond the pharmaceutical sector, however, Scolr’s business development appears not to be progressing as planned as a result of delays.
In June the firm cut its revenue expectations for new extended-release nutritional supplements business, explaining that: “[it] was based on the expected shipment of Scolr products to certain large accounts which place orders three times a year based on a shelf planning cycle.
“Due to delays in product availability, Scolr will be unable to meet the second of these scheduled review cycles and will not be able to ship products to these large accounts in 2010.”
Turner reiterated the impact of these delays in the latest quarterly report, commenting that “Although we anticipate making some small shipments of nutritional products during 2010, the majority of anticipated sales growth in the nutritional business is expected to occur in 2011 as we bring key accounts online and expand both our customer base and geographic distribution.
