Star Gears Up for Nutraceutical Launch

Source from:  Tobacco Reporter 05/12/2010

Star Scientific has reported revenue of $0.2 million for the first quarter of 2010 and a net loss of $4.9 million. Star said that losses generated from operating expenses continued to impose significant demands on liquidity. Cash needs during the remainder of 2010 included those to cover litigation costs of roughly $1.6 million in connection with the company's patent infringement lawsuit against RJ Reynolds. Appellate counsel for Star filed the company's opening brief in its appeal of the June 2009 trial verdict with the US Court of Appeals for the Federal Circuit on May 5. The company expects continuing cash requirements associated with the test market launch of CigRx(TM), the non-nicotine "nutraceutical" product developed by its Rock Creek Pharmaceuticals subsidiary. First quarter expenses related to CigRx(TM) totaled about $1.3 million. Star is currently engaged in a number of pre-market efforts in connection with the launch. It also is finalizing marketing plans with Gerbig, Snell, Weisheimer Advertising (GSW), a subsidiary of InVentiv Health. GSW will supply sales and marketing support when the test marketing starts. Enditem