PETERSBURG, Va., May 11 /PRNewswire-FirstCall/ -- Star Scientific, Inc. filed its quarterly report on Form 10-Q for the period ended March 31, 2009, today with the Securities and Exchange Commission. The company reported cash and cash equivalents of $19.7 million as of March 31, 2009 compared with $6.5 million for the fourth quarter 2008.
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Net sales for first quarter 2009, which totaled $.15 million, were essentially unchanged compared with fourth quarter 2008 net sales of $.15 million. The company believes that sales of the company's dissolvable smokeless tobacco products, Ariva and Stonewall, were adversely impacted by an increase in the Federal Excise tax on tobacco products contained in the SCHIP legislation, which became effective April 1. Wholesale and retail operations were reluctant to maintain inventory on hand beginning in late February, in an effort to minimize taxable inventory as of the April 1 effective date. Early second quarter sales data appear to indicate that dissolvable tobacco sales have rebounded as wholesale and retail inventories are being restocked. Star Scientific had a net loss of $5.2 million for first quarter 2009 compared with a $5.5 million loss for first quarter 2008.
The company also announced that the jury trial in its patent infringement lawsuit against RJ Reynolds Tobacco Company (RJR) will commence with jury selection on Monday, May 18. The trial will be held in US District Court, West Lombard Street in Baltimore, MD, and Star anticipates that the jury trial will last approximately three weeks.
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/. 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
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Star Scientific, Inc.
CONTACT: Sara Troy Machir, Vice President, Communications & Investor
Relations of Star Scientific, Inc., +1-301-654-8300,
smachir@starscientific.com
Web Site: http://www.starscientific.com/
