GLEN ALLEN, Va., May 10, 2012 /PRNewswire/ -- Star
Scientific, Inc., (NASDAQ: CIGX) today filed with the Securities
Exchange Commission its Form 10-Q for the quarter ended
March 31, 2012. The company reported
net sales for the quarter ended March 31,
2012 of $1.2 million compared
with $156 thousand for the same
period in 2011. The increase in net sales during the first
quarter of 2012 represents an approximate 700% increase from the
same period in 2011 based on increased sales of the company's
dietary supplements, particularly its Anatabloc® product, which was
introduced into the market in August 2011. Sales of the
company's dietary supplements accounted for $1.1 million of net sales for the quarter ended
March 31, 2012. The company
also reported positive gross profits of $247
thousand for first-quarter 2012 compared to a gross loss of
$(286) thousand in the same period in
2011. The net loss for first-quarter 2012 was $(5.2) million compared with a $(6.1) million net loss for the same period in
2011.
(Logo: http://photos.prnewswire.com/prnh/20120301/NE62741LOGO
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Paul L. Perito, Chairman,
President, and COO of Star Scientific commented, "We are pleased to
report continued improvement of sales of our dietary supplements
and a positive gross profit for the first quarter of 2012.
Those increased sales have been driven primarily by consumer
acceptance of our Anatabloc® dietary supplement. Since the
introduction of Anatabloc® in August
2011, our dietary supplement sales have increased month to
month; that trend has continued through the first quarter and for
April 2012. With the expanded rollout of our product in GNC
retail and franchise stores and expanded marketing efforts, we
anticipate that we will continue to see improved sales
performance."
The company announced in a February
1 press release that Anatabloc® would be available through
the GNC Internet storefront: www.gnc.com, and on March 27, announced an expanded rollout into
GNC's high-volume corporate retail stores. As part of the
expanded GNC rollout, the company's first brand ambassador,
professional golfer Fred Couples,
will act as the face of Anatabloc® with GNC. Sales and
distribution of Anatabloc® have continued to grow at a brisk pace
since the announcement of the relationship with GNC in February and
the company is now engaging with each facet of GNC's corporate,
retail, and franchise components. David M. Dean, Vice President for Sales and
Marketing of Star Scientific, Inc., noted, "The commitment, focus,
and enthusiasm shown by GNC management and field sales personnel is
very encouraging." GNC, a NYSE global health and
wellness retailer specializing in premium, value-added nutritional
products, has in excess of 4,000 retail stores throughout the
country.
At the same time that the company's Rock Creek Pharmaceuticals
subsidiary has expanded dietary supplement sales, it also has
continued to report progress in connection with its ongoing
research relating to anatabine citrate (patent pending), a
principal dietary ingredient in the Anatabloc® formulation.
In January, the company announced that it had completed a
successful human clinical trial showing that Anatabloc® lowers
C-reactive protein (CRP) levels in subjects' blood. In
February, it announced IRB approval for its "ASAP" (Anatabloc
Supplementation Autoimmune Prevention) thyroid study to investigate
the potential role for nutritional supplementation with an
Anatabloc® formulation in supporting immune health. That
study is currently ongoing at nine clinical sites. Most
recently, on April 26, the company
reported that Rock Creek received IRB approval for the first human
clinical study of the safety and effects of nutritional
supplementation in individuals with Alzheimer's disease. This
clinical study will be undertaken in conjunction with the Roskamp
Institute of Sarasota, Florida,
the company's collaborating research partner in assessing the
impact of Anatabloc® on Alzheimer's.
As anticipated, RJ Reynolds Tobacco Company, Inc. ("RJR") filed
a petition for certiorari with the Supreme Court on March 28, 2012, to review the decision of
the United States Court of Appeals
for the Federal Circuit as to the definiteness of the patents at
issue in the RJR litigation. Star Scientific's response to
the petition for certiorari is due May
29, 2012. The Supreme Court grants review in less than
1% of all requests and the company remains confident that it is
much more likely than not that the Court will deny RJR's
petition. The filing of a petition for certiorari by RJR does
not impact the mediation/settlement process that is ongoing before
Magistrate Judge Gauvey in the Federal District Court in
Maryland.
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, results of clinical trials, 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, DC. 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:
Talhia T. Tuck
Vice President, Communications and Investor Relations
Star Scientific, Inc.
(301) 654-8300
ttuck@starscientific.com
SOURCE Star Scientific, Inc.