Star Scientific Files Third-Quarter Financials, Updates Anatabloc Sales
GLEN ALLEN, Va., Nov. 9, 2011 /PRNewswire/ -- Star Scientific, Inc., (NASDAQ: CIGX) reported that it filed the company's financial report on the third quarter today with the Securities and Exchange Commission. The company reported net sales for the third quarter of $0.4 million compared with $0.2 million for the same period in 2010. Sales of CigRx® and Anatabloc™, the dietary supplements manufactured by the company's Rock Creek Pharmaceuticals subsidiary, accounted for $0.3 million of third-quarter net sales. While Anatabloc™, which was launched on August 30, was only available for roughly one month of third-quarter 2011, sales of that product exceeded the quarterly revenues for both CigRx® and the dissolvable smokeless products marketed by Star Tobacco, Ariva® and Stonewall®.
Sales of the company's dissolvable smokeless tobacco products were stable over the previous several quarters but declined by $0.1 million during third-quarter 2011 when compared with the same period in 2010. The company reported an increase in net loss of $1.8 million for the third quarter when compared with the same period in 2010. That increase related primarily to CigRx® packaging and raw material overstock reserve, as well as an increase in research and development costs.
Jonnie R. Williams, Star Scientific's CEO, commented, "We are pleased with the pace of sales of our dietary supplements, which increased approximately 35% in October from the previous month, and we anticipate that as we expand the marketing program for Anatabloc™ we will see continued growth. The response to our initial physician conferences, for example, has been very positive. We want to continue to expand all potentials for Anatabloc™ and for CigRx®." The company recently completed an initial round of conferences to introduce Anatabloc™ to physicians and allied health care providers, and currently is in the process of scheduling a second round of meetings. The Flint study, which is examining the effect of anatabine on chronic inflammation in subjects with elevated c-reactive protein (CRP) levels, is ongoing at several sites and continues to enroll subjects. Rock Creek Pharmaceuticals also will conclude at the end of November a clinical trial with approximately 100 smokers, which is evaluating the role that Anatabloc™ can play in lowering CRP levels and addressing subjects' urge to light a cigarette.As the company indicated in a recent press release, research conducted at the Johns Hopkins University School of Medicine, which examined anatabine and thyroiditis in an animal model, was presented on October 27 at the 81st annual meeting of the American Thyroid Association. Earlier in October the European Journal of Pharmacology published research conducted by the Roskamp Institute that examined the accumulation of an abnormal substance, called A-beta, which leads to amyloid formation and damage to brain tissue. That research showed that when anatabine is given to mice vulnerable to accumulation of amyloid, treatment with anatabine lowered brain levels of both A-beta (1-40) and A-beta (1-42). Certain statements in this press release other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "continues," "likely," "may," "opportunity," "potential," "projects," "will," "expects," "plans," "intends" and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. These statements reflect our current beliefs and are based on information currently available to us. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, without limitation, the challenges inherent in new product development initiatives through Star Tobacco and Rock Creek, the uncertainties inherent in the progress of scientific research, our ability to raise additional capital in the future that is necessary to maintain our business, potential disputes concerning our intellectual property, risks associated with litigation regarding such intellectual property, uncertainties associated with the development, testing and regulatory approvals of our low-TSNA tobacco, related tobacco products and pharmaceutical and nutraceutical products , market acceptance of our new smokeless tobacco products and nutraceutical and pharmaceutical products, competition from companies with greater resources than us, our dependence on key employees and on our prior strategic relationships with Brown & Williamson Tobacco Corporation in light of its combination with R.J. Reynolds Tobacco Company, Inc. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. See additional discussion under "Risk Factors" in the Company's Annual Report on Form 10-K as filed with the SEC on March 16, 2011, and other factors detailed from time to time in the Company's other filings with the SEC, available at www.sec.gov. All information in this release is current as of this date, and the Company undertakes no obligation to update or advise upon any such forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. About Star Scientific Star Scientific is a technology-oriented company with a mission to reduce the harm associated with tobacco at every level. It is engaged in the development of dissolvable smokeless tobacco products that deliver fewer carcinogenic toxins, principally through the utilization of the innovative StarCured® tobacco curing technology. Its subsidiary, Rock Creek Pharmaceuticals, Inc., is involved in the development of nutraceuticals as well as products to address neurological and mood disorders. Rock Creek Pharmaceuticals has scientific and research offices in Gloucester, MA, and a regulatory office in Washington, D.C. Star Scientific has a Corporate and Sales Office in Glen Allen, VA, an Executive, Scientific & Regulatory Affairs office in Bethesda, MD, and a manufacturing facility in Chase City, VA. See Star's website at: http://www.starscientific.com Contact: Sara Troy Machir Vice President, Communications & Investor Relations firstname.lastname@example.org (301) 654-8300 SOURCE Star Scientific, Inc.
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