Anatabloc - FDA - Star Scientific - Indictment of the McDonnells
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Transcript of Anatabloc - FDA - Star Scientific - Indictment of the McDonnells
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AnatablocFDAStarScientific.txtThecompanyformerlyknownasStarScientificannouncedMondaythatitissuspendingsaleofitsnutritionalsupplementsCigRxandAnatablocuntilitresolvesissueswiththeFDA.TheformerchiefexecutiveofStarScientific,JonnieWilliams,hasfiguredprominentlyinthefederalcorruptiontrialofformerVirginiaGov.RobertMcDonnellandhiswife,Maureen.ThepairareontrialinRichmond,Va.,facingfederalchargesstemmingfromtheirrelationshipwithWilliamsduringMcDonnell'sterminoffice.
TheMcDonnellsareaccusedofacceptingmorethan$165,000ingiftsandloansfromWilliams,whowantedtousetheMcDonnells'influencetopromoteStarScientific'sAnatabloc.ThegovernmenthasgivenWilliamsimmunityfromprosecutionforhistestimonyinthecase.WilliamsresignedasStarScientificCEOinDecember,andthecompanychangeditsnametoRockCreekPharmaceuticals(NASDAQ:RCPI)inJune,movingitsheadquarterstoSarasota,Fla.,fromtheRichmondsuburbofGlenAllen.ApotentialclassactionlawsuitnamingboththecompanyandGNCasdefendantswasfiledinlateJanuaryinfederalcourtinIllinoisallegingfalseclaimsaboutthesupplement,whichwasbeingsoldfor$100for300lozengesorupto$300foraseriesoffacialcreams.RockCreekPharmaceuticalssaiditwillcontinueitspursuitofUnitedKingdomandEuropeanclinicalsafetytrialsinadditiontoworkingwiththeFDA.SharesofRockCreekPharmaceuticalsweredown6centsMonday,closingat38centspershare.Thecompany,whichhasnootherproductsonthemarketnow,madeitsannouncementafterthemarketclosedandbyearlyeveningshareshaddroppedanadditional6centsto31centsinafterhourstrading.
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AnatablocFDAStarScientific.txtThecompanyreportedsecondquarternetsalesof$700,000,adecreaseof71%fromthethesecondquarterof2013andhadanetlossof$12.7millionvs.$8.7millioninthesameperiodayearago.Forthefirstsixmonthsofthisyear,salesweredown63%comparedtothesameperiodayearago,andlossesincreasedbyathird,accordingtothecompany'sForm10QfiledwiththeSecuritiesandExchangeCommission.OnFriday,RockCreekPharmaceuticalclosedona$6millionprivateplacementfinancialtransactionwithoneofthecompany'slargestshareholders,officialssaidinaMondaypressrelease.Thestockhitahighof$9.25ashareinmidNovember1999andhashadlesservalueseversince.Initspressrelease,RockCreekPharmaceuticalwrotethatceasingsalesofCigRxandAnatabloc,would"bringtheFDAwarninglettermattertoaclose."
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