Virginia's Star Scientific to Seek Tobacco-Related Drugs

Source from:  techjournalsouth.com June 25, 2007 CHESTER, VA 06/27/2007

Star Scientific Inc., (Nasdaq:STSI.O)which sells tobacco products with lower levels of toxins, says it is reorganizing and may spin-off its tobacco-based operations in the future. The company, which markets hard tobacco products that dissolve in the mouth under its Ariva and Stonewall brands, has incorporated a new entity to pursue tobacco-related drugs to treat smokeless tobacco dependence. It will also look at agents in tobacco to treat central nervous system disorders such as Alzeheimer's, Parkinson's, schizophrenia and depresson. The company saw its share price fall from $7 two years ago to under $1 following an adverse ruling in a patent dispute with R.J. Reynolds over a method of curing tobacco to produce fewer carcinogenic toxins. Star said it intends to pursue its appeal of the ruling. The company's drug development plans sound similar to those of Winston-Salem based Targacept, an R.J.R. spin-off that is also developing drugs to treat neurological diseases with agents similar to nicotine but without its toxic side-effects. The company says it will split into two publicly traded units, one focused on tobacco manufacturing and the other on drugs that use a tobacco-based element. The company's shares traded up 3 cents at $.90 midmorning Monday. Enditem