GLEN ALLEN, Va., Nov. 10, 2010 /PRNewswire-FirstCall/ -- Star Scientific, Inc. (Nasdaq: CIGX) filed the company's third-quarter financial report yesterday with the Securities & Exchange Commission. The company reported $695 thousand in net sales for the nine months ended September 30, 2010 compared with $618 thousand for the same period in 2009. Net sales for the third quarter totaled $211 thousand compared with $232 thousand for third-quarter 2009. The decrease in third-quarter 2010 sales was due primarily to volume decreases. However, this was partially offset by both decreased product promotional spending and price increases on Ariva® and Stonewall® dissolvable smokeless tobacco pieces. Early sales of Star's CigRx™ product also contributed to offset the sales decline. The company reported a third-quarter net loss of $4.8 million compared with a net loss of $4.9 million for third-quarter 2009. Marketing expenses increased during the third quarter as efforts were intensified in the lead-up to the market introduction of CigRx™.
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CigRx™, a non-tobacco, non-nicotine dietary supplement that reduces the urge for a cigarette, was developed by the company's Rock Creek Pharmaceuticals subsidiary and was introduced in August 2010. The marketing and sales of CigRx™ were initiated via a dedicated website (www.cigrx.com), an infomercial intended to educate adult smokers about the product's benefits and purchase opportunities, and a pilot marketing program that is being conducted in partnership with the GSW division of InVentiv Health. The InVentiv marketing program has been directed to introducing CigRx™ to physicians and allied healthcare providers in a geographic region around the Richmond, Virginia area and to provide these offices with product samples for referral to smoking patients.
Richard J. Levy, Executive Vice President for Client Solutions with InVentiv Health, commented that he has been encouraged by the reception of physicians and healthcare professionals in the greater Richmond market to the introduction of CigRx™. Mr. Levy also stated that his company looks forward to the national roll out of this needed consumer product and Star believes that InVentiv's focus on introduction, education and sampling is an essential component of the company's CigRx™ marketing plan. The company currently is planning the next phase of the market expansion.
The company also is evaluating development strategies for RCP-006, a compound also developed by Rock Creek that has been shown in laboratory testing on cells and animals to inhibit both inflammation and the production of amyloid. Both of these factors are present in Alzheimer's disease. The Roskamp Institute stated in a press release last month that as a result of testing on RCP-006, it was moving to initiate human clinical study of the compound. Michael Mullan, MD, Ph.D., Director of the Roskamp Institute and CEO of its affiliated company, Archer Pharmaceuticals, commented that the study to be undertaken will enroll 40 subjects and will have a duration of approximately six months.
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, 2010, 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: |
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Sara Troy Machir |
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Vice President, Communications & Investor Relations |
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(301) 654-8300 |
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SOURCE Star Scientific, Inc.
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