Star Reports Net Sales Up Sharply

Source from:  Tobacco Reporter 11/12/2009

Star Scientific's net sales for the third quarter to the end of September, at $231,942, were up by nearly 70 per cent on those of the third quarter of 2008, $136,725. The gross loss during the third quarter, at $400,238, was down from a gross loss of $435,514 in the comparable period of 2008, but the net loss was up from $4.4 million to $4.9 million. The $0.5 million increase in net loss was said to have been primarily linked with increased R&D expenses during the third quarter of 2009. Net loss for the nine months ended September 30, 2009, at $17.2 million, was up by $0.9 million, an increase that was attributed to increased R&D expenses and to increased costs associated with the company's patent infringement lawsuit against RJ Reynolds. Meanwhile, Star and inVentiv Health LLC have agreed in principle to a partnership arrangement for the marketing and sales of CigRx(TM), a nutraceutical product developed by Star's subsidiary, Rock Creek Pharmaceuticals. Discussions on the arrangement are said to be continuing. At the same time Star is preparing a modified risk product application and believes it is on track to submit such an application to the US Food and Drug Administration (FDA) during the first quarter of next year. "The application, which the company hopes will be the first of its kind to be submitted to the FDA, will seek approval to market Ariva? BDL and Stonewall? BDL as modified risk tobacco products under the provisions of the Family Smoking Prevention and Tobacco Control Act enacted in June, 2009," Star said in a note posted on its website. "The Ariva? and Stonewall? brand extension 'BDL' signifies that the tobacco in the product has TSNA levels that are substantially below the levels found in other tobacco products." "FDA approval of Ariva? and Stonewall? BDL as designated modified risk products would permit the company to share accurate and balanced information with adult smokers and tobacco users about the reduction in exposure to toxins that results from using these products instead of inhaling cigarette smoke or choosing traditional smokeless tobacco products that contain significantly higher TSNA levels." Enditem