Star Scientific, Inc. Files Third-Quarter 10-Q Reporting on
Financial Results, Continued Expansion of Anatabloc® Dietary
Supplement Sales, and IRB Approval for a Clinical Trial Relating to
Anatabloc® Facial Creme
GLEN ALLEN, Va., Nov. 9, 2012 /PRNewswire/ -- Star
Scientific, Inc. (NASDAQ: STSI) today filed its third-quarter 2012
financial report on Form 10-Q with the Securities and Exchange
Commission. The Company reported net sales totaling $1.7 million for the three months ended
September 30, 2012, compared with net
sales of $0.4 million for the same
period in 2011. Net sales for the nine months ended September 30, 2012, totaled $4.5 million, compared with $0.8 million for the same period in 2011.
The 450% increase in net sales for the nine months ended
September 30, 2012, compared with the
nine month period in 2011, was due to an increase in the sales of
Anatabloc®, the Company's dietary supplement that is designed to
support the immune system in maintaining healthy levels of
inflammation. Anatabloc®, which was introduced in
August 2011, is now available at
approximately 4,000 GNC stores (3,000 corporate and 1,000 franchise
stores) located in all fifty states. Anatabloc® can also be
ordered online at www.anatabloc.com.
(Logo: http://photos.prnewswire.com/prnh/20120301/NE62741LOGO
)
Gross profits totaled $0.2 million
for the three months ended September 30,
2012, compared with a gross loss of ($1.1) million for the same period in 2011, an
improvement of $1.3 million.
Gross profits totaled $0.9
million for the nine months ended September 30, 2012, compared with a gross loss of
($1.7) million for the same period in
2011, representing an increase of $2.6
million.
The Company reported a net profit of $0.4
million for the three months ended September 30, 2012, compared with a net loss of
($6.6) million for the same period in
2011. The net loss for the nine months ended September 30, 2012, totaled ($12.8) million compared with a net loss of
($17.6) million for the same period
in 2011. Net profits during the three month and nine month
periods ended September 30, 2012,
included miscellaneous income recognized in the third quarter in
connection with the resolution of the Company's litigation matters
with RJ Reynolds Tobacco Company. Other material
information relating to the global resolution of the RJR litigation
matters can be found in the Company's report on Form
10-Q.
On August 6, 2012, the Company
changed its NASDAQ ticker symbol to STSI in order to emphasize the
Company's broadening health-related mission to develop and
manufacture a variety of products that assist in maintaining a
healthy metabolism and lifestyle, as well as providing
anti-inflammatory support. One such product, Anatabloc® Rare
Cellular Facial Creme, was introduced in September 2012, as a cosmetic designed to help
improve the appearance of the skin and reduce the appearance of
redness. The Company recently received IRB approval to
conduct a multi-site clinical (human) study of this product for the
purpose of determining whether Anatabloc® Rare Cellular Facial
Creme is helpful to individuals with mild to moderate
rosacea. The three sites where the clinical trial will be
conducted are: Bradenton, Florida;
New York City, New York; and New
Orleans, Louisiana. The clinical trial will be
supervised by Dr. Susan H. Weinkle,
President of the American Society for Dermatologic Surgery, and an
experienced and respected practitioner and clinical
investigator. The facial cream is available online at
www.anatabloc.com and promoted through select dermatology
practices.
In August, working in conjunction with the Roskamp Institute,
the Company began enrolling subjects in a clinical (human) study to
analyze the effects of supplementation with Anatabloc® in
individuals with mild to moderate Alzheimer's disease. As of
November 8, 2012, that study, which
is being conducted at the Roskamp Institute, has enrolled
twenty-two subjects. The Company also recently updated the
status of its ASAP Thyroid Study, its "Flint" CRP study, and in
August, reported the issuance of a new patent (Patent No.
8,241,680) for an anatabine and yerba mate composition that assists
in weight loss and curbing the urge to use tobacco.
Paul L. Perito, Chairman,
President, and COO of Star Scientific commented, "We are pleased
with the robust Anatabloc® sales, which have grown quarter to
quarter. We are equally buoyed by the fact that because there
is a GNC corporate or franchise store (approximately 4,000
nationwide) within five miles or less of 95% of all Americans,
access to Anatabloc® is now literally within the reach of every
American. Our iconic Brand Ambassador, professional golfer
Fred Couples, continues to be
featured in radio and TV advertising nationwide, personalizing the
message of Anatabloc®'s worthiness to those embracing a healthy and
active lifestyle."
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, Inc. is a technology-oriented company with a
mission to promote maintenance of a healthy metabolism, as well as
to reduce the harm associated with the use of tobacco at every
level. Over the last several years, through its wholly owned
subsidiary, Rock Creek Pharmaceuticals, Star Scientific has been
engaged in the manufacturing, sale, and marketing of two
nutraceutical dietary supplements, and the development of other
nutraceuticals and pharmaceuticals. The company also has continued
to pursue the development, implementation, and licensing of the
technology behind its proprietary StarCured® tobacco curing
process, which substantially prevents the formation of carcinogenic
toxins present in tobacco and tobacco smoke, primarily the
tobacco-specific nitrosamines, or TSNAs and related low-TSNA
dissolvable tobacco products. 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; Executive, Scientific & Regulatory Affairs
offices in Bethesda, MD, and
Washington, DC; and a
manufacturing facility in Chase City,
VA.
Contact:
Talhia T. Tuck
Vice President, Communications and Investor Relations
Star Scientific, Inc.
(202)887-5100
ttuck@starscientific.com
SOURCE Star Scientific, Inc.