Star Reports Increased Sales

Source from:  Tobacco Reporter 08/12/2009

Star Scientific's net sales for the second quarter, at $0.2 million, were up from $0.05 million during the same quarter of 2008. And net sales for the first six months of 2009, at $0.38 million, were up from $0.2 million. The company believes that sales volumes were down during the first quarter because of the passage of amendments to the Children's Health Insurance Program bill that were financed by increases in the federal excise tax on tobacco products. Star's second-quarter 2009 net loss, at $7.0 million, was increased from a $6.4 million loss during the same quarter of 2008, primarily due to additional costs associated with the May jury trial of the company's patent infringement lawsuit against RJ Reynolds Tobacco Co. Operating costs, at $6.4 million, were up from $5.8 million, with £0.1 million of this having been spent on product development of the company's Ariva and Stonewall dissolvable smokeless tobacco products. "As part of that effort, the company recently completed successful focus group testing for several new versions of Ariva, including additional blends," Star said. "The company also is in active discussions with another tobacco company regarding an agreement aimed at expanding distribution and marketing of Ariva and Stonewall. If an agreement is achieved, Star anticipates it will be able to achieve both cost reductions and broadened product distribution for its dissolvable tobacco products."