Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

The Ultimate Test – On Me... I’ve Tried It and CigRx Works

|Includes: Rock Creek Pharmaceuticals, Inc. (RCPI)

8-13-2010

 

Dr. John L. Faessel

ON THE MARKET

Commentary and Insights

Faessel Publishing LLC

Dr.Faessel@onthemar.com

 

~ SMOKING ~

          Me and my father-in-law, Tom Doherty

 

 

The Ultimate Test – On Me...

 

I’ve Tried It and It Works

 

        Star Scientific Inc. (CIGX) $1.67 Nasdaq

        Market-cap $199 million

 

A Best Idea UPDATE for 2010

 

I'm a cigar smoker as the picture above will attest; the picture was taken of me and my late father-in-law, Tom Doherty at one of my stepson's wedding. (As an aside; that picture was in Cigar Aficionado magazine last year) I think I started smoking cigars way back when at the weddings of my fraternity brothers. Over the years they became kind of a special occasion / celebratory fandango of sorts. I love the mystique and am even a member of a cigar smoking group that meets once a month in Rancho Santa Fe California where we discuss current events, both personal and societal and we relish our cigars. It's a rowdy bunch by the way. Anyway, over the years I've begun to smoke more cigars, like every day and I “with gusto” savor getting into that box of Havana’s; in fact I really look forward to it a whole bunch. In fact I like to chomp on the ends of the thing. It's a taste thing for me, I've never smoked a cigarette and don't inhale cigars, but I know I'm getting the nicotine pop. So, the Star Scientific (CIGX) story has had a special interest for me to the point where today I gave the CigRx™ lozenge the ultimate test― That's the one on me.

 

Accordingly, as is my wont to do, I go for a swim almost every afternoon and churn a bunch of laps. Right after my swim I light up a fresh cigar and it’s a delightful treat for me at that time. What really happens here tho is that I keep that thing around for the rest of the day and into the next day, chomping away. I know I've got some nicotine kind of habit / need―it's a big urge to put it mildly. Anyway, today I popped open my first package of CigRx™ lozenges that the FedEx man just delivered to me. Before my swim I put two of the tasty little devils against my cheek and in about 10 minutes or so they were dissolved. Obviously, I'm all "ears" to see what the effect will be. Amazingly, that imperious urge that usually really gets to me was dampened to the degree that it was like, gone. Not there! After dinner, when I usually light up again, I popped in another CigRx™ and, still no uncomfortable urge to smoke or taste the delights of the tobacco. I might add that my wife took one about the same time I took my two and she, who quit smoking 24 years ago (and never lets me forget it) gave it the taste test. First of all we agree that it’s good enough to use like a Tic-Tac candy thingy. Also, and this comes out of the blue, she tells that it quelled her appetite to a large degree before dinner. Hmmm...?

 

For sure, and it's bedtime for me now and I've taken my third CigRx™ and while I wouldn't mind munching on the butt end of that cigar remnant, I have no urge to do it. And haven’t! Wow! If CigRx™ works like that for the rest of the smoking world that wants to "not smoke at that time" it's all that they say "it" is.

 

How about that for a testimonial? I think “for sure” it's a lot more than a placebo effect. More, certainly will be revealed when we hear about how the infomercial is received in Richmond, Virginia and “how goes” the sales from the region. We'll also I'm sure soon hear about the results of the university studies that are accessible to the doctors and pharmacists in Richmond.

 

The infomercial offers a toll-free number, 1-800-778-2031, through which adult smokers can order the product.  The CigRx™ product website www.cigrx.com

 

It was just a week ago last Thursday that (CIGX) announced that their new much awaited dietary supplement, CigRx™ has been launched in the greater Richmond, Virginia area. This focused undertaking will be immediately followed by a national campaign.

 

The Tic-Tac type lozenge temporarily reduces the urge to smoke using a unique combination of dietary ingredients. The launch includes, among other things, infomercials running on TV, representatives contacting the local doctors in the area, and delivery of the CigRx™ product to pharmacies and other health-related outlets in the region. National online availability of CigRx™ is also just a few clicks away; importantly it’s an over-the-counter, non-nicotine nutraceutical and no prescription is required and it’s made from natural ingredients.

 

The launch of the new patent pending, non-tobacco, product is being undertaken and shepherded by InVentiv Health, a major drug / health product distributor with revenues of $1.1 billion. InVentiv’s client list includes giants in the big Pharma industry; Johnson & Johnson, Abbott, Novartis, Merck, Pfizer, and Eli Lilly to name just a few. InVentiv Health is a world leader in the realm of launching new products and their expertise and a well-proven track record is fact. InVentiv has a footprint that covers 44 countries and they are targeting a market of an astounding 1.2 billion (and growing) people who smoke, spending $325 billion for cigarettes; now they “partner” with little (CIGX); it speaks tons for how they must view the possibilities for CigRx™.

 

Now then; here comes the “connect the dots” rational that could make just this one feature (more below*) of the (CIGX) InVentiv Health story / stock one for the ages.

On 8-4-2010 in a buy-out, private equity firm Thomas H. Lee Partners** paid $1.1 billion, for InVentiv Health Inc., (shareholders will receive $26.05 for each share.)

 

So why would a private firm with these mega $bb clients hook one of their wagons to tiny and unknown CigRx™?

 

And why position this launch to include doctors and pharmacists? InVentiv is specifically targeting doctors and pharmacists obviously because of the high degree of confidence and assurance that CigRx™ IS THE REAL DEAL! Ponder this; why would they undertake this “partnership” with (CIGX) without knowing that this product works?

 

In addition consider; by targeting doctors and pharmacists InVentiv raises the bar of CigRx™ (an over-the-counter product) to a much higher level of eminence and distinction, identical to the way a new drug that requires a doctor’s prescription would be detailed.

 

I have heard that after testing in Richmond, Virginia InVentiv plans an aggressive and rapid national rollout with infomercials and other extensive media support to hit countrywide.

 

I'm also hearing that out there in rumorvill (trading rooms, websites and investor blogs) that a hush-hush study on smoking addiction from a well-known and prestigious private institution which ostensibly says that the CigRx™ lozenge really is effective in significantly reducing the urge to smoke with an accompanying very high success rate. Also mentioned, is that doctors participating in the Richmond test will have direct access via a code link to these study results which are supposed to be spectacular in affirming the effectiveness of CigRx™ in quelling the urge to smoke. I emphasize that this is a rumor.

 

I don't know when the results of the university study will trickle to the markets, but―secure in the knowledge that when enough doctors get detailed by InVentiv re the CigRx™ story, presumably it won't be a long wait before the results are available for all to see. This could be major news and be broadcast far and wide thru all the major and minor media outlets. Just imagine; finally something that stops the urge. Chew on that possibility...

 

Also of note; check out the newly established web-site that describes CigRx™ and how to purchase the lozenges. The site has an exceptional and professional look with testimonials and video links―It's a powerful sell. The website, www.cigrx.com

 

I mentioned in last month’s ON THE MARKET report on (CIGX) that if CigRx™ achieved $100 million in sales the first year, (CIGX) would earn about 0.30 a share; introduce a 20 times multiple and that equates to a $6 stock. If CigRx™ could achieve an $800 million run rate (CIGX) would earn $2 to $3 a share and have a potential $40-$60 stock. It’s no wonder why powerful InVentiv Health is teaming / “partnering” with (CIGX). Furthermore, keep in mind that many of the drugs that are distributed by InVentiv from their big Pharma clients do sales in the $ multi-billions. Therein lies the moon-shot potential.

 

If you missed my (CIGX) reports from last month email a request to: Dr.Faessel@onthemar.com

 

The infomercial offers a toll-free number, 1-800-778-2031, through which adult smokers can order the product.  The CigRx™ product website www.cigrx.com

 

* There are other looming, potentially hugely market moving dimensions to the (CIGX) story that are percolating and ready to pop, like the Roskamp studies related to a potential Alzheimer cure / treatment, plus the mega lawsuit against tobacco giant RJ Reynolds, that is being orchestrated by the powerful law firm Sidley and Austin LLP (a major patent law impresario that has lost just a couple of patent suits over their long history) that alone drove the stock to just below $6 last year...

 

** Thomas H. Lee Partners is one of the oldest and most successful private equity investment firms in United States. Since its establishment in 1974, Thomas H. Lee Partners has been the preeminent growth buyout firm, raising approximately $22 billion dollars in equity capital, investing in more than 100 businesses with an aggregate purchase price of more than $125 billion, completing over 200 add-on transactions and generating superior returns for its investors.

 

Add all this together and you can hear the cash register ring. It is why I have included Star Scientific (CIGX) is one of my Best Ideas for 2010.

 

I have purchased shares of Star Scientific in the open market.

 

To view the (CIGX) website: http://www.starscientific.com

The CigRx™ product website www.cigrx.com

 

 

To unsubscribe – onthemar@gmail.com

 

 

 

On The Market’s Safe Harbor Statement: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made.  On The Market is a wholly owned subsidiary of Faessel Publications LLC and provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. Faessel Publications LLC has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources believed by Faessel Publications LLC  to be reliable, but Faessel Publications LLC  provides no assurance, and none is given, as to the accuracy and completeness of this information. Disclaimer: ON THE MARKET / Faessel Publications LLC is not a registered Investment Adviser or a Broker/Dealer. Readers are advised that the information in this report is commentary issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy. The opinions and analyses included herein are based from sources believed to be reliable and written in good faith, but no representation or warranty, expressed or implied is made as to their accuracy, completeness or correctness. Owners, employees and writers may have positions in the securities that are discussed in the newsletter. Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report should be independently verified with the companies mentioned. Readers are cautioned that small and micro-cap stocks are high-risk investments and that they may lose all or a portion of their investment if they make a purchase. Certain of the statements in this commentary may be considered forwarded looking statements. ON THE MARKET/Faessel Publications LLC makes no representation and provides no assurance or guaranty that such forward looking statements will prove to be accurate. Statements of opinion and belief are those of the authors and/or editors of this report, and are based solely upon the information possessed by such authors and/or editors; no inference should be drawn that such authors or editors have any special or greater knowledge about the company or companies profiled or any particular expertise in the industries or markets in which the profiled company or companies compete. The reader should verify all claims and complete his own due diligence before investing in any securities of profiled company or companies. ON THE MARKET / Faessel Publications LLC makes no recommendation that the purchase of securities of company or companies profiled in this report are suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the company or companies profiled and the lack of an active trading   market for their securities, investing in such securities is highly speculative and carries a high degree of risk. An investor in such securities should be prepared and able to bear a loss of his or her entire investment. Nothing in this report should be construed as an offer or solicitation to buy or sell any securities of any profiled company. ON THE MARKET / Faessel Publications LLC undertakes no obligation to inform readers about the ownership or trading activities of it or its employees or affiliates in the securities of the profiled company or companies. We encourage you to review the investing information available at the Securities and Exchange Commission ("SEC") website (http://www.sec.gov) and the National Association of Securities Dealers ("NASD") website http://www.nasdr.com. You can review all public filings by the companies mentioned at the SEC's EDGAR page. The NASD website includes helpful investor awareness and educational information. The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report should not be used as the basis for any investment decision. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results.  The opinions contained herein reflect our current judgment and are subject to change without notice. Faessel Publications LLC and / or its affiliates, associates and employees from time to time may have either a long or short position in securities mentioned. Information contained herein may not be reproduced in whole or in part without the express written consent of Faessel Publications LLC.

 

 

 

 

 

 



Disclosure: Long CIGX