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.
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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.
Talhia T. Tuck
Vice President, Communications and Investor Relations
Star Scientific, Inc.
SOURCE Star Scientific, Inc.