Star Scientific Takes a Magical Mulligan On Failed Study Results

GLEN ALLEN, Va. ( TheStreet) --Did Star Scientific ( STSI) release materially false information to investors this week when it announced results from a study of its dietary supplement Anatabloc?

In a statement of correction issued Friday, Star Scientific claims to have "underreported" results from a phase II study investigating the effect of Anatabine on C-reactive protein (CRP), a biomarker for inflammation.

On Wednesday, Star Scientific said CRP levels dropped in 26% of diabetic patients taking Anatabloc for a month. On Friday, however, the company claimed CRP levels had actually dropped in 61% of diabetic patients.

Star Scientific's performed the same magical upsizing on results for the non-diabetic patients in the study, with CRP responses improving from 12% on Wednesday to 38% on Friday.

The company offered no explanation Friday for how or why the data from the study allegedly improved over the course of two days. Without an explanation, it's impossible to know which data are false and which are true.

Let's hope someone at the Securities and Exchange Commission gets some answers.

-- Reported by Adam Feuerstein in Boston.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

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