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Dr. John Faessel
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Dr. John L. Faessel is a seasoned and respected Wall Street professional with industry-wide recognition for expertise in market strategy and analysis. He is widely recognized for his insights in public companies. For over 20-years Dr. Faessel’s ON THE MARKET reports have been widely distributed... More
  • CIGX Update > More On The Tobacco Trial Of The Future 5 comments
    Apr 9, 2012 2:11 PM | about stocks: RCPI

    4-9-2012

    Dr. John L. Faessel
    ON THE MARKET
    Commentary and Insights

    FDA and U.S. Patent Office have blessed CIGX - Now Big Tobacco must list the "Unsafe Chemicals" in their products. Licensing of Stars Technology is Next

    Star Scientific Inc. (CIGX) Nasdaq

    More on the Tobacco Trial of the Future

    The seeming endless mishmash of legal machinations goes on with Star Scientific and Reynolds Tobacco. Last November, Reynolds, experienced yet another loss when the Federal Circuit court declined their request to have the dispute covering patents for tobacco-curing technology heard again by the entire full court (of I believe 16 judges), rather than the smaller panel. The court originally ruled in favor of Star re the validity of their patents. The definition of that full court hearing process is referred to "en banc."

    More recently, March 30, 2012, Reynolds petitioned the U.S. Supreme Court to invalidate Star's two patents for their tobacco-curing that removes the cancer-causing agents. Some backdrop is needed here: Each year about 11,000 cases are submitted to the nation's highest court and only about 80 are heard, so the odds are that the case will not be heard. Also, key is that Stars patents were validated not only by the US Patent Office not once, but twice (that supposedly makes them irreconcilably valid) so an overturn is extremely unlikely. Obviously, anything can happen when it comes to the courts, but this one's a far stretch.

    Now to add to the equation, on March 30 the FDA released a list of 93 chemicals that tobacco makers would have to report the quantity of in their products, So the regulations, not to mention news flow are decidedly against Big Tobacco.

    ____________

    So, just for fun, let's again muse about the "Tobacco Trial of the Future" with this new information to add some zing to the story.

    Let's begin by refreshing our memory re the FDA ruling last year* that net, net ruled that Star can market its tobacco products that have the cancer-causing lethal agent in tobacco removed.

    Now slash into the future - coming to a courthouse near you... the setting: the Tobacco / Cancer Class Action trial in 20xx.

    Attorney for the litigants: So Mr. Big "bad" Tobacco executive, our plaintiffs have suffered immensely and incomprehensibly due to your studied and willful negligence. Just why didn't you license Star Scientifics' technology that removes the cancer causing agent from the tobacco? Each year (you) sell $80 billion of tobacco products in the U.S. and $250 billion globally. Over the last 5-years that's over a $trillion in sales and since the lawsuit was filed over 10-years ago it's twice that amount. It would have been so inexpensive ― probably a minuscule 2% royalty? The totality of all that illness and pain is staggering. Each day 13,500 people worldwide die from tobacco related diseases. Shame. Shame. Shame...

    Ladies and gentlemen of the Jury --- Eviscerate them!

    __________

    Just imagine, for over a decade the recalcitrant Big Tobacco companies have been beating up on tiny Star with all kinds of "willful" legal impediments in hopes that they could outlast their infinitesimally small pest. Big Tobacco has chosen to disregard, or was unwilling to explore, or chose to ignore, opportunities to provide safer products. They have violated the public trust. The time has come to recognize that Star has developed what is a momentous technological breakthrough; an undertaking that will provide a much safer product to the over billion people who choose to use tobacco products.

    * The immensely credible U.S. Food & Drug Administration [FDA] who represents us all has, provided a de facto okay* for Star to market their products providing immense legitimacy to their decade-long efforts.

    Add that on March 11, 2011 it was announced that the U. S. Patent Office in a re-examination of patents central to the lawsuit against Reynolds American Inc. (NYSE:RAI) were validated, i.e. "set in stone" with no possibility of appeal . Now of course Reynolds is taking this to the Supreme Court in what must be their final last gasp.

    In my opinion we will soon see a licensing deal because Big Tobacco would be butchered in front of a jury. In what is suppose to be the largest patent infringement case ever, the total payment to Star in some kind of licensing deal from Big Tobacco could total in the hundreds of millions of even billions.

    More backdrop in favor Star:

    Star's patent application indicates that in using the Star Scientific method of curing, the deadly nitrosamines are "below the levels of detection. Star's curing method / technology results in a tobacco product that has the deadly nitrosamines reduced to "below the levels of detection" [BDL] (i.e. unable to be found / not there? I presume)... From what I understand, no one else is able to accomplish that. Nitrosamines are identified by scientists' world wide as the cancer-causing agents in tobacco leaf and smoke.

    If you missed my previous reports more specific in detail and scope to each of Star's themes, or to receive my Best Ideas for 2012 send a request to: Dr.Faessel@onthemar.com

    To view the (CIGX) website: http://www.starscientific.com/about-star/company-profile/

    Disclosure: I am long CIGX.

    Stocks: RCPI
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Comments (5)
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  • MilesJStoner
    , contributor
    Comments (35) | Send Message
     
    still pumping CIGX?? hows that working out, and your a dentist. This is like your 5th article on them in the last year. ur killin' me smalls.
    9 Apr 2012, 02:41 PM Reply Like
  • Labman01
    , contributor
    Comments (48) | Send Message
     
    Dr. John, You are so right on!!!
    1 Oct 2012, 12:48 PM Reply Like
  • Labman01
    , contributor
    Comments (48) | Send Message
     
    Dr. John, Everything What you have said is totally correct!! All of a sudden, both sides dismiss the case, and all of a sudden they both agree to pay for their own legal s fees. Does this sound like something the two companies would suddenly agree on, especially Star Scientific ? Just after the announcement of the dismissal, a Star Scientific board member buys 50,000e US Patent
    shares of Star, as did another board member did last month. This settlement has been in the works for quite a while, and I believe both parties knew they were dismissing the case Montserrat ago. This completely tells of a major buyout. There are some very powerful people that sit on Stars board, to be such a small company. People say it will take several years for Stars stock to get to the $50 or higher, I dont think so, if there indeed is a buyout. Stars stock will be at incredible highs, literally overnight. Keep up the great work Dr. John!!!
    1 Oct 2012, 01:07 PM Reply Like
  • MilesJStoner
    , contributor
    Comments (35) | Send Message
     
    lmao, no
    11 Feb 2014, 01:00 AM Reply Like
  • Labman01
    , contributor
    Comments (48) | Send Message
     
    Yea your right, was trying to stay optimistic. Williams ego I think took em down, among other things. Sad part, the stuff works. Everything that was published on the positive was just fabricated. A lot of people are going to try and get their investment back. Under the circumstances of false reports on the research, they could succeed. I don't much about the legal aspects of something like this, but again it's not your typical investment in a company that have good people running it but things just don't work out, they didn't make up stories. It seems that I've been waiting for years for positive results with the damn rats. I should of woken up when the brain injuries report was released. Wonder where they even came up with that report.i was in total denial just for wanting and needing my investment to hit big. Your right I'm wrong.
    11 Feb 2014, 09:18 AM Reply Like
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