PETERSBURG, Va., March 16 /PRNewswire-FirstCall/ -- Star Scientific, Inc. filed its Annual Report on Form 10-K today with the Securities and Exchange Commission. The company reported 2008 net sales of $0.5 million, which essentially were unchanged from net sales for 2007. However, volume sales of the company's two dissolvable smokeless tobacco products, Ariva(R) and Stonewall(R), increased 7.8% in 2008 compared to 2007. The wholesale price for 20-piece packages of the products was increased $.10 effective January 1, 2009. Star reported a net loss for 2008 of $18.3 million compared to the 2007 net loss of $41.5 million. The 2007 net loss included a $27.0 million loss from the sale of the interest stream and reversionary interest in the company's MSA escrow accounts, in addition to an operating loss of $17.1 million that was partially offset by a gain of $3.6 million on the sale of 990 tobacco curing barns.
Star reported cash and cash equivalents totaling $6.5 million at year-end 2008 as compared to $8.9 million at year-end 2007. In addition the company reported that between January 1 and early March, 2009, it had raised approximately $14.0 million in cash through the exercise of outstanding warrants and stock options.
As the company noted in a January 6, 2009 press release, its Rock Creek Pharmaceuticals subsidiary recently completed a study to determine the ability of Stonewall(R) dissolvable smokeless tobacco to relieve cigarette withdrawal symptoms when compared to an over-the-counter nicotine replacement product (NRT). Rock Creek applied to have the study results included in an abstract submission at the Society for Research in Nicotine and Tobacco (SRNT) -- Europe Conference to be held in Dublin, Ireland in April 2009, and was recently notified that the submission has been accepted. An abstract on lung cancer death rates that previously had been submitted and accepted also will be presented by Rock Creek at the conference.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Star Scientific, Inc. and its consolidated subsidiaries ( collectively, the "Company") has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties and contingencies include, without limitation, the challenges inherent in new product development initiatives, the uncertainties inherent in the progress of scientific research, the Company's ability to raise additional capital in the future necessary to maintain its business, potential disputes concerning the Company's intellectual property, risks associated with litigation regarding such intellectual property, potential delays in obtaining any necessary government approvals of the Company's low-TSNA tobacco products, market acceptance of the Company's new smokeless tobacco products, competition from companies with greater resources than the Company, the Company's decision not to join the Master Settlement Agreement ("MSA"), the effect of state statutes adopted under the MSA, and the Company's dependence on key employees and on its strategic relationships with Brown & Williamson Tobacco Corporation in light of its combination with RJ Reynolds Tobacco Company, Inc. The impact of potential litigation, if initiated against or by individual states that have adopted the MSA, could be materially adverse to the Company.
Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. See additional discussion under "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2008, as filed with the SEC on March 16, 2009, and other factors detailed from time to time in the Company's other filings with the SEC, available at http://www.sec.gov/. All information in this release is as of March 16, 2009, and the Company undertakes no obligation to update or advise upon any such forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
About Rock Creek Pharmaceuticals
Rock Creek Pharmaceuticals develops pharmaceutical products for treatment of addiction and other neurological disorders. The company supports third-party academic, educational and therapeutic advances in both these areas of research. Rock Creek has scientific and research offices in Gloucester, MA.
About Star Scientific
Star Scientific is a technology-oriented tobacco company with a toxin reduction mission. It is engaged in the development of dissolvable smokeless tobacco products that deliver fewer carcinogenic toxins (principally tobacco specific nitrosamines, or TSNAs), through the utilization of the innovative StarCured(R) tobacco curing technology, and in sublicensing that technology to others. Star Scientific has a Corporate and Sales Office in Petersburg, VA, an Executive, Scientific & Regulatory Affairs office in Bethesda, MD, and manufacturing facilities in Chase City, VA.
See Star's website at: http://www.starscientific.com/ Contact: Sara Troy Machir Vice President, Communications & Investor Relations smachir@starscientific.com (301) 654-8300
