GLEN ALLEN, Va., March 15, 2012 /PRNewswire/ -- Star
Scientific, Inc. (NASDAQ: CIGX) today filed its annual financial
report on Form 10-K with the Securities & Exchange Commission
(SEC). The company reported that net sales for 2011 totaled
$1.73 million, a 100% increase over
2010 net sales of $.848
million. Fourth-quarter 2011 net sales totaled
$0.91 million compared with
$0.15 million in fourth-quarter 2011.
Net sales of the company's dietary supplements
constituted 71.8% of gross sales for 2011, and dietary supplement
sales continued to increase month over month in both January and
February, 2012. In a parallel development, Rock Creek
Pharmaceuticals, the company's wholly-owned subsidiary, is
preparing for a national launch of Anatabloc at GNC retail
stores.
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Total operating expenses for 2011 increased to $36.0 million from $26.9
million for 2010. The company reported a net loss of
$38.0 million for 2011, which
includes a non-cash, stock-based compensation charge of
approximately $17.3 million,
attributable primarily to stock option grants that were approved by
the company's stockholders at Star Scientific's Annual Meeting in
December. Star reported 2011 year-end cash and cash equivalents of
$10.19 million. The company also
reported that on February 28, 2012 it
entered into two Securities Purchase Agreements that resulted in
gross proceeds of $12.0 million to
Star Scientific. The company previously announced that on
December 28th, 2011 it had entered
into a Securities Purchase Agreement that resulted in gross
proceeds of $6.3 million. That
transaction, along with the February
28th transactions, resulted in a total of $18.3 million in gross proceeds to Star.
The company also reported that in February, 2012 PGA Tour
professional Fred Couples entered
into an agreement with Rock Creek Pharmaceuticals, under which Mr.
Couples agreed to be a brand ambassador for Anatabloc® at
tournaments and related events. Mr. Couples held a press conference
during the Northern Trust Open in February during which he
commented that he has been using Anatabloc®, the company's dietary
supplement that was developed to provide anti-inflammatory support,
for several months. He commented further that, "There has been a
difference in how I feel, both when I wake up in the morning and
throughout my day." Anatabloc® has been marketed since
August, 2011 via a dedicated product website. The product also has
been available for purchase via the GNC Internet storefront since
February 1, 2012, and has been listed
in recent weeks as "top-selling" product.
Anatabloc® contains the dietary ingredient anatabine citrate,
which has been the subject of a number of research protocols
undertaken both by Rock Creek Pharmaceuticals and by independent
researchers. Anatabloc® is being tested for potential effects
in lowering inflammation and markers of inflammatory cardiovascular
risk (C - reactive protein and interleukins) in a multi-site
dietary intervention study based in Flint, Michigan, and in a multi-site dietary
intervention study of thyroid health that the company announced in
a February 9, 2012 press release.
Both of these studies, which bear the acronym ASAP (Anatabloc
Supplementation Autoimmune Prevention) are ongoing and enrolling,
with plans for interim looks in mid-2012. Studies proposed for
later in 2012 include controlled investigations into the ability of
Anatabloc to prevent post-exercise soreness (ASAP DOMS, or
delayed-onset muscle soreness) and the effects of dietary
intervention on joint health (ASAP Arthritis Study).
Individuals interested in enrolling in the trials should contact
the designated party listed on ClinicalTrials.gov.
Certain statements contained in this release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements include,
but are not limited to statements identified by words such as
"believes," "expects," "anticipates," "estimates," "intends,"
"plans," "targets," "projects" and similar expressions. The
statements in this release are based upon the current beliefs and
expectations of our company's management and are subject to
significant risks and uncertainties. Actual results may differ from
those set forth in the forward-looking statements. Numerous factors
could cause or contribute to such differences, including, but not
limited to, the challenges inherent in new product development
initiatives, including the continued development and market
acceptance of our nutraceutical and low-TSNA tobacco products, our
ability to license and protect our intellectual property, our
ability to raise additional capital in the future that is necessary
to maintain our business, changes in government policy and/or
regulation, including with respect to our nutraceutical and
low-TSNA tobacco products, as well as other risks discussed from
time to time in our filings with the Securities and Exchange
Commission, including, without limitation, our annual report on
Form 10-K for the fiscal year ended December
31, 2011. We undertake no duty to update any forward-looking
statement or any information contained in this press release or in
other public disclosures at any time.
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.
Contact:
Sara Troy Machir
Vice President, Communications & Investor Relations
(301) 654-8300
SOURCE Star Scientific, Inc.