GLEN ALLEN, Va., May 10, 2013 /PRNewswire/ -- Star Scientific, Inc., (NASDAQ: STSI) today filed with the Securities Exchange Commission its Form 10-Q for the quarter ended March 31, 2013.
The company reported net sales of $2.5 million for the quarter ended March 31, 2013, compared with $1.1 million for the same period in 2012. The increase of 127% was attributable exclusively to increased Anatabloc® sales volume. The company also reported positive gross profits of $1.1 million for first-quarter 2013, compared to a gross profit of $0.4 million for the same period in 2012. The Company has reported increased net sales and positive gross profits in each of the last five quarters.
The net loss for first-quarter 2013 was $(8.2) million compared with a $(5.2) million net loss for the same period in 2012. The increased loss for the first quarter was primarily attributable to increases in sales and marketing costs, legal expenses, and research and development costs. Sales and marketing costs increased as the company expanded promotion of its Anatabloc® dietary supplement product. As reflected in the 10-Q Report, the Company expects that sales and marketing expenses will trend lower in the near-term as sales and marketing efforts related to Anatabloc® level out in 2013. Legal fees increased in connection with the previously reported ongoing investigations and class action lawsuits. As discussed in the 10-Q Report, the Company anticipates increased costs in this area in 2013.
Research and development costs increased in the first quarter as the Company continued to finalize reports on two clinical studies and continued work on its Rosacea clinical trial, which reached full enrollment during the first quarter 2013. As reported in the 10-Q Report, the Company expects that its R&D costs will trend lower in the near-term as work is finalized on the CRP and Hashimoto's autoimmune thyroiditis clinical studies.
In February, Anatabloc® was selected as a recipient of the annual GNC Top Vendor Awards. Specifically, Anatabloc® was recognized by GNC as the Wellness Winner in the category of Best Product Innovation for 2012. More recently, Anatabloc® received registration approval from HFL Sports Science, a leading testing laboratory for banned substances. This qualification permits Star Scientific to use HFL's "Informed-Sport" and "Informed-Choice" trademarks on Registered Products, providing assurance that these products have been tested for substances prohibited in sport. Also, in January, the Company announced that John Isner, the top-ranked American player on the ATP World Tour, had agreed to act as the Company's second Brand Ambassador for Anatabloc®. PGA Tour Professional, Fred Couples, continues to serve in his role as the Company's first Anatabloc® Brand Ambassador.
During the first quarter of 2013, the company expanded the Anatabloc® cosmetic products line with the introduction of Anatabloc® Revitalizing Facial Serum. Both Anatabloc® Facial Creme and Anatabloc® Facial Serum are available on the Company's product website, as well as on GNC's website.
The company announced positive findings during the first quarter of 2013 in connection with an analysis of the initial results for all study subjects who completed the ASAP Human Thyroid health study. The company also reported positive results from a study conducted by researchers at the University of Virginia Medical School investigating the effects of anatabine in an animal model of idiopathic inflammatory bowel disease, ulcerative colitis.
Certain statements contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions. The statements in this release are based upon the current beliefs and expectations of our company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences, including, but not limited to, results of clinical trials and/or other studies, the challenges inherent in new product development initiatives, including the continued development and market acceptance of our nutraceutical dietary supplements products, the effect of any competitive products, our ability to license and protect our intellectual property, our ability to raise additional capital in the future that is necessary to maintain our business, changes in government policy and/or regulation, potential litigation by or against us, any governmental review of our products or practices and the outcome of the ongoing investigations as well as other risks discussed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our annual report on Form 10-K for the fiscal year ended December 31, 2012. We undertake no duty to update any forward-looking statement or any information contained in this press release or in other public disclosures at any time.
About Star Scientific
Star Scientific, Inc. is a technology-oriented company with a mission to promote maintenance of a healthy metabolism and lifestyle. Through its wholly owned subsidiary, Rock Creek Pharmaceuticals, Star Scientific has been engaged in the manufacturing, sale, and marketing of two nutraceutical dietary supplements, a cosmetic facial cream, and the development of other nutraceuticals and pharmaceuticals. The company also continues to pursue the licensing of the technology behind its proprietary StarCured® curing process and its related products. Rock Creek Pharmaceuticals has scientific and research offices in Gloucester, MA, and a regulatory office in Washington, DC. Star Scientific has a Corporate and Sales Office in Glen Allen, VA, and an Executive, Scientific & Regulatory Affairs office in Washington, DC.
Talhia T. Tuck
Vice President, Communications and Investor Relations
Star Scientific, Inc.
SOURCE Star Scientific, Inc.