SOURCE: Paragon Financial Limited

Paragon Financial Limited

September 22, 2011 08:16 ET

Star Scientific and Altria Group Hedge Against Increased FDA Scrutiny

The Paragon Report Provides Equity Research on Star Scientific & Altria Group

NEW YORK, NY--(Marketwire - Sep 22, 2011) - The Paragon Report examines investing opportunities in the tobacco industry and provides equity research on Star Scientific, Inc. (NASDAQ: CIGX) and Altria Group, Inc. (NYSE: MO). Access to the full company reports can be found at:

Traditional cigarette manufacturers have gone on the offensive of late, sharply criticizing the FDA, as well as the Department of Finance. Presently Tobacco companies are in court trying to prevent the government from imposing new regulations that will require bold warning labels on cigarette packages and advertisements. The Food and Drug Administration gained the authority to regulate tobacco products under a law passed in 2009.

Meanwhile, Associated Anglo-American Tobacco Corp recently criticized the Department of Finance for pushing for a uniform excise tax system on cigarette products. Vice-president Blake Clinton Dy explained that a uniform excise tax rate will push prices of its tobacco products to record highs, resulting in markedly lower sales and even lower revenue collections for the government.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the tobacco industry register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

With increasing regulatory pressures companies in the sector are looking to transition into different smokeless tobacco products.

Star Scientific makes two dissolvable tobacco lozenges, Ariva and Stonewell, which are not subject to Chapter IX of Federal Food Drug & Cosmetic Act. The company recently lost a bid for a new trial in its patent-infringement case against Reynolds American Inc. The US Court of appeals said there was substantial evidence to support a lower court's finding that Reynolds didn't infringe Star's patents for reducing carcinogens in cigarettes. The Federal Circuit said the trial judge should have reversed a jury's findings that the patents were invalid.

Presently Altria offers smokeless tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands. Though chewing tobacco has been associated with various oral ailments, it is considered by some to be less hazardous than smoking and isn't as tightly regulated.

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