Star Scientific - q2 2009 report..

August 11, 2009 - Star Scientific, Inc. filed its second-quarter report today, August 10th with the Securities and Exchange Commission. The company reported net sales of $.2 million for the second quarter, significantly higher when compared with net sales of $.05 million for the same quarter in 2008. Net sales for the first six months of 2009 totaled $.38 million compared with $.2 million for the same period in 2008. Sales volumes rebounded strongly compared with lower volumes for first-quarter 2009, which the company believes was due to the passage of amendments to the Children's Health Insurance Program bill that are financed by increases in the federal excise tax on tobacco products. The company reported a second-quarter net loss of $7.0 million compared with a $6.4 million loss for the same period in 2008. This increase was due primarily to additional costs associated with the May, 2009 jury trial of the company's patent infringement lawsuit against RJ Reynolds Tobacco Company. Total operating costs for second quarter 2009 of $6.4 million increased from $5.8 million for the same period in 2008.

The research and development portion of those expenses included $.1 million in product development work to enhance the company's dissolvable smokeless tobacco products, Ariva(R) and Stonewall(R). As part of that effort, the company recently completed successful focus group testing for several new versions of Ariva(R), including additional blends. The company also is in active discussions with another tobacco company regarding an agreement aimed at expanding distribution and marketing of Ariva(R) and Stonewall(R). Susan Ivey, President and CEO at Reynolds American tries to justify her dissolvable products like Camel Orbs telling people they are very similar to other exiting products (like Star Scientific's Ariva and Stonewall HardSnuff Dissolvable Tobacco) and so she will continue to evaluate these Dissolvables in the lead market.)

Rock Creek Pharmaceuticals subsidiary - second quarter R&D expenses also included expenditures of $.4 million by the company's y. These expenditures related to assessing the applicability of low-TSNA tobacco and certain MAO agents for several applications, including in a non-nicotine nutraceutical product designed to minimize nicotine cravings. Rock Creek now has completed two preliminary studies to assess the viability and safety of the active components for a non-nicotine nutraceutical (a dietary supplement product).

Curtis Wright, MD, MPH, Chief Medical Officer of Rock Creek, stated he is pleased with the preliminary results of the safety studies now being conducted at two independent research institutions. "There is increasing evidence in recent years that the association between nicotine addiction and MAO reduction in smokers is important. Rock Creek's research program is central to its evolving strategies and to the continued development of products for the treatment of cigarette addiction, including a non-nicotine nutraceutical that would be marketed under the brand name CigRx(TM).

Reference: Star Scientific Files Second Quarter Financial ResultsBio-Medicine, 8/10/2009.

Some related Star Scientific news briefs:
Star Scientific - Filing patent for zero-nitrosamine tobaco curing process..;
Star Scientific - 2008 annual report/Stonewall vs other OTC NRTs..;
Star Scientific Corporate Study Stonewall Lozenge in NRT..;
Star Scientific Files Third Quarter Financial Report..;
Star Scientific wants to augment sales of their tobacco lozenges..;
Star Scientific , second quarter 2008, sales down 23.6%..;
Star Scientific Applauds Recent State Legislation - Banning Smoking in Cars with Children..