Star Scientific’s corporate office is in a suite at 4470 Cox Road. (Photos by Burl Rolett)
A shakeup is in the works at the top ranks of a local firm that this summer became entangled in a scandal with Gov. Bob McDonnell.
Two of the heads of Star Scientific – including chief executive Jonnie Williams – and most of the company’s board of directors are on their way out, according to an SEC filing made Thursday. The company also plans to change its name and move some of its operations.
Williams, who founded the company, pharmaceutical and supplement company, will resign after the annual shareholders meeting Dec. 27. President and chief operating officer Paul Perito will also step down.
In addition to changes in the executive ranks, all but one of the company’s board members will be replaced. The company will also ask shareholders to approve changing its name to Rock Creek Pharmaceuticals Inc.
An Anatabloc ad on the door to Star Scientific’s office in July.
The company attributed the changes to a strategic shift and did not tie them to the controversy it was dragged into this year regarding questions over gifts and financial dealings between Williams and the McDonnell family.
“The Company believes it has reached a point of inflection following a management and board review of the progress of research on forms of anatabine, for which the Company holds several patents and has patents pending,” it said in its filing. “The Company’s Chairman and the Chief Executive Officer both recommended to the Board that significant leadership changes are needed to better leverage opportunities in pharmaceutical development and FDA approval in the biotechnology space.”
Replacing Williams at the top office is Michael J. Mullan, who currently is chief executive of the Roskamp Institute and Archer Pharmaceuticals. Star Scientific has worked with the Roskamp Institute for three years on research related to anatabine, a chemical compound it uses for developing products.
Taking Perito’s position as president will be Christopher C. Chapman, who has experience to oversee development of antabine, the company said.
“Dr. Mullan and Dr. Chapman bring the combination of expertise and experience that we have sought, and which herald an exciting future for the Company,” Perito said in a prepared statement.
Williams commented in a prepared statement: “We are proud of the successes we have had in identifying and developing truly innovative processes and products that can make a difference in people’s lives. Our anatabine compound is now well-positioned to help millions of people. It is time to further leverage these successes, and I have great respect for the skills and experience that Mike Mullan and Chris Chapman will bring to lead the Company to the next level.”
The new directors that have been nominated to the board have experience in the financial sector and the nutritional supplement industry.
In making changes at the board level, the company said it “sought to nominate persons with the appropriate skills, backgrounds and experiences that are well suited for the company’s shift in focus on the development of pharmaceutical products as well as the expansion of our nutraceutical and cosmetic lines of business.”
Williams will stay on for a year as a “non-executive employee,” assisting in patent prosecutions, new product development efforts and the like.
Perito, who has held the role of president and COO since 2000, will become the company’s senior counsel, overseeing legal and regulatory affairs. He’ll hold that position for one year.
Williams owns 17.36 million shares of the company’s stock, which closed at $1.73 per share Thursday. Perito owns 6.45 million shares.
The company said it would move some of its administrative and research functions to Sarasota, Fla., where its new chief executive and some of the new board members reside.
Star Scientific shareholders will weigh the matter at the company’s annual meeting Dec. 27 in Washington. The resignations of Perito and Williams, as well as the installation of their replacements, are not subject to a shareholder vote.
Star Scientific’s corporate office is in a suite at 4470 Cox Road. (Photos by Burl Rolett)
A shakeup is in the works at the top ranks of a local firm that this summer became entangled in a scandal with Gov. Bob McDonnell.
Two of the heads of Star Scientific – including chief executive Jonnie Williams – and most of the company’s board of directors are on their way out, according to an SEC filing made Thursday. The company also plans to change its name and move some of its operations.
Williams, who founded the company, pharmaceutical and supplement company, will resign after the annual shareholders meeting Dec. 27. President and chief operating officer Paul Perito will also step down.
In addition to changes in the executive ranks, all but one of the company’s board members will be replaced. The company will also ask shareholders to approve changing its name to Rock Creek Pharmaceuticals Inc.
An Anatabloc ad on the door to Star Scientific’s office in July.
The company attributed the changes to a strategic shift and did not tie them to the controversy it was dragged into this year regarding questions over gifts and financial dealings between Williams and the McDonnell family.
“The Company believes it has reached a point of inflection following a management and board review of the progress of research on forms of anatabine, for which the Company holds several patents and has patents pending,” it said in its filing. “The Company’s Chairman and the Chief Executive Officer both recommended to the Board that significant leadership changes are needed to better leverage opportunities in pharmaceutical development and FDA approval in the biotechnology space.”
Replacing Williams at the top office is Michael J. Mullan, who currently is chief executive of the Roskamp Institute and Archer Pharmaceuticals. Star Scientific has worked with the Roskamp Institute for three years on research related to anatabine, a chemical compound it uses for developing products.
Taking Perito’s position as president will be Christopher C. Chapman, who has experience to oversee development of antabine, the company said.
“Dr. Mullan and Dr. Chapman bring the combination of expertise and experience that we have sought, and which herald an exciting future for the Company,” Perito said in a prepared statement.
Williams commented in a prepared statement: “We are proud of the successes we have had in identifying and developing truly innovative processes and products that can make a difference in people’s lives. Our anatabine compound is now well-positioned to help millions of people. It is time to further leverage these successes, and I have great respect for the skills and experience that Mike Mullan and Chris Chapman will bring to lead the Company to the next level.”
The new directors that have been nominated to the board have experience in the financial sector and the nutritional supplement industry.
In making changes at the board level, the company said it “sought to nominate persons with the appropriate skills, backgrounds and experiences that are well suited for the company’s shift in focus on the development of pharmaceutical products as well as the expansion of our nutraceutical and cosmetic lines of business.”
Williams will stay on for a year as a “non-executive employee,” assisting in patent prosecutions, new product development efforts and the like.
Perito, who has held the role of president and COO since 2000, will become the company’s senior counsel, overseeing legal and regulatory affairs. He’ll hold that position for one year.
Williams owns 17.36 million shares of the company’s stock, which closed at $1.73 per share Thursday. Perito owns 6.45 million shares.
The company said it would move some of its administrative and research functions to Sarasota, Fla., where its new chief executive and some of the new board members reside.
Star Scientific shareholders will weigh the matter at the company’s annual meeting Dec. 27 in Washington. The resignations of Perito and Williams, as well as the installation of their replacements, are not subject to a shareholder vote.