Adolor Corp (ADLR) SEC Filing 10-K Annual report for the fiscal year ending Friday, December 31, 2004

Exhibit 99.1

FOR IMMEDIATE RELEASE

ADOLOR CORPORATION REPORTS

YEAR END 2004 FINANCIAL RESULTS

EXTON, Pa., March 1, 2005

For the twelve months ended December 31, 2004, the Company reported a net loss of $43.6 million or $1.12 per basic and diluted share, compared to a net loss of $51.2 million or $1.57 per basic and diluted share for the same period in 2003. For the three months ended December 31, 2004, the Company reported a net loss of $11.6 million or $0.30 per basic and diluted share, compared to a net loss of $14.5 million or $0.41 per basic and diluted share in the three months ended December 31, 2003.

“In 2004, we made significant progress towards our goal of becoming a fully integrated biopharmaceutical company,” stated Bruce A. Peacock, president and chief executive officer of Adolor. “We were proud to submit our first NDA to the Food and Drug Administration in June for our lead product, Entereg (TM), in the management of postoperative ileus. The FDA accepted the Entereg NDA for review in September, which triggered the receipt of a $10.0 million milestone payment from GlaxoSmithKline.”

“Further, GSK advanced Entereg’s development in additional indications and we are awaiting data from Phase 2 studies in chronic OBD and chronic constipation,” continued Mr. Peacock. “Our R&D group continued to make progress in the sterile lidocaine patch and analgesic discovery research programs. We ended 2004 with approximately $162.3 million in cash and investments.”

Contract revenues for the twelve months ended December 31, 2004 were $25.5 million compared to $20.7 million in the same period in 2003. This increase is primarily due to the recognition of $10.0 million in milestone revenue received from Glaxo Group Limited (“Glaxo”) in 2004, partially offset by a reduction in cost reimbursement revenues relating to a decrease in expenses incurred by us which are reimbursable by Glaxo under the collaboration agreement. Contract revenues for the three months ended December 31, 2004 were $4.4 million, compared to $4.1 million in the same period of 2003.