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Star Scientific Files Second Quarter Financial Results; Rock Creek Pharmaceuticals Reports Early Promising Results in Studies Assessing Safety and Viability of Active Components for a Non-Nicotine Nutraceutical (CigRx(TM))
Date:8/10/2009

PETERSBURG, Va., Aug. 10 /PRNewswire-FirstCall/ -- Star Scientific, Inc. (Nasdaq: STSI) filed its second-quarter report on Form 10-Q today with the Securities and Exchange Commission. The company reported net sales of $.2 million for the second quarter, significantly higher when compared with net sales of $.05 million for the same quarter in 2008. Net sales for the first six months of 2009 totaled $.38 million compared with $.2 million for the same period in 2008. Sales volumes rebounded strongly compared with lower volumes for first-quarter 2009, which the company believes was due to the passage of amendments to the Children's Health Insurance Program bill that are financed by increases in the federal excise tax on tobacco products. The company reported a second-quarter net loss of $7.0 million compared with a $6.4 million loss for the same period in 2008. This increase was due primarily to additional costs associated with the May, 2009 jury trial of the company's patent infringement lawsuit against RJ Reynolds Tobacco Company. Total operating costs for second quarter 2009 of $6.4 million increased from $5.8 million for the same period in 2008.

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The research and development portion of those expenses included $.1 million in product development work to enhance the company's dissolvable smokeless tobacco products, Ariva(R) and Stonewall(R). As part of that effort, the company recently completed successful focus group testing for several new versions of Ariva(R), including additional blends. The company also is in active discussions with another tobacco company regarding an agreement aimed at expanding distribution and marketing of Ariva(R) and Stonewal
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SOURCE Star Scientific, Inc.
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