GLEN ALLEN, Va., April 7 /PRNewswire-FirstCall/ -- Star Scientific announced today that it has completed a "Research and Royalty Agreement" with the Roskamp Institute's affiliate, SRQ Bio, LLC, under which the Institute will conduct research on a compound developed by the company's Rock Creek Pharmaceutical subsidiary that medical researchers at the Institute believe may have an application in the treatment of Alzheimer's disease. Preliminary testing of the compound has produced promising results when applied to cells, and the compound is being explored further for its application to treat a variety of neurological conditions, including Alzheimer's. Preliminary tests performed by the Roskamp Institute show that when the compound developed by Rock Creek is applied to cells, B-amyloid is reduced. Also, the compound appears to encourage new neuronal cell growth. Results in cells do not necessarily translate to human testing, and additional work needs to be completed to determine whether the compound will have significant B-amyloid lowering effects in humans. There are now 5.3 million Americans living with Alzheimer's and every 70 seconds, someone in America develops Alzheimer's disease. In 2010, there will be approximately 500,000 new cases per year. Tragically, Alzheimer's is the sixth-leading cause of death in our country. From 2000-2006, deaths from Alzheimer's rose 47.1%.
In light of the execution of a detailed Research and Royalty Agreement, Rock Creek anticipates a close collaboration between Michael Mullan, MD, PhD and Fiona Crawford, PhD, Co-Directors of the Roskamp Institute, with Rock Creek's Senior Medical and Scientific Director, Curtis Wright, IV, MD, MPH, former Acting Director, as well as Deputy Director of the Division of Anesthetics, Analgesics, Drug Abuse at FDA.
In March 2010, Robert Roskamp in an individual capacity purchased shares of Star Scientific stock valued at $1 million, and was issued a matching warrant for an equal number of shares, as part of a private placement transaction. Under the Research and Royalty Agreement announced today, the company has agreed to issue to SRQ Bio, LLC 100,000 shares of common stock in a private placement.
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 as filed with the SEC on March 16, 2010, and other factors detailed from time to time in the Company's other filings with the SEC, available at www.sec.gov. All information in this release is current as of this date, 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.
Through its Rock Creek Pharmaceuticals subsidiary it is also involved in the development of nutraceuticals as well as products to address neurological and mood disorders. Star Scientific has a Corporate and Sales Office in Glen Allen, VA, an Executive, Scientific & Regulatory Affairs office in Bethesda, MD, and a manufacturing facility in Chase City, VA. Rock Creek has scientific and research offices in Gloucester, MA and a regulatory office in Washington, DC.
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