- Rat populations have created concerns for centuries because of their potential to be a vector for diseases, their destruction of infrastructure, and their consumption or spoilage of stored food supplies
- Arizona-based SenesTech Inc. is now introducing its new Evolve(TM) Soft Bait as a companion to its patented ContraPest(R) liquid product as means of shifting rodent control methods from lethal poisons to preventative birth control formulations, with Evolve(TM) Soft Bait representing a big step into a major new market
- The company recently discussed its operation and plans for the near future during a webcast presentation as part of Lytham Partners’ Fall 2023 Investor Conference
- SenesTech has produced successes during testing at West Coast and East Coast poultry farms, and has achieved new client agreements that extend to the countries of Maldives and South Africa
Rodent control innovator SenesTech (NASDAQ: SNES) is delivering a new method of administering its unique, patented contraceptive technology that serves as a form of birth control in both male and female rats, making SenesTech’s solution to the rat population more readily accessible and appealing to pest management companies as well as consumers who prefer non-liquid baits.
The company’s new trademarked Evolve(TM) Soft Bait is an important non-liquid addition to SenesTech’s portfolio, which includes the liquid ContraPest(R) bait brand that has been its flagship product (https://ibn.fm/KhoQm). Since non-liquid forms of control products are preferred by rodent control professionals, Evolve(TM) Soft Bait is a strong entry for the company into this huge new market.
SenesTech CEO Joel Fruendt and CFO Tom Chesterman discussed the strategy behind Evolve(TM) in a Lytham Partners Fall 2023 Investor Conference webcast presentation earlier this month (https://ibn.fm/xmDqm).
While ContraPest(R) has been “very palatable” to rodents and “keeps the rats coming back for more,” Fruendt said, only about 5 percent of current rodenticide formulations are in liquid form — the vast majority of the market uses solids. Pest management businesses represent a significant market for SenesTech’s new product.
“. . . we are … releasing a soft bait formulation which provides the unique attributes of proven fertility control in an industry-familiar soft bait format demanded by many, including big box retailers, key e-commerce channels and leading pest management professionals,” Fruendt said. “When I took over as CEO at SenesTech, soft bait is one of the key items I quickly identified as a need for us to steepen the curve. I believe its introduction … will be transformative for our business.”
Fruendt labeled rodent control “one of the world’s most challenging problems,” but noted solutions have thus far focused on lethal poisons that “seek to control the death rate” with limited success.
“The challenge, as we see it, is the incredible rate of reproduction of the rats. Given sufficient food, water and harborage, two breeding rats can result in 15,000 offspring after a single year,” he said. “In fact, the largest pest company in the world, Rentokil, commissioned an interactive study, The Rise of Rats, that revealed how a pair of rats could produce nearly half a billion descendants in just three years,” Fruendt added. “Half a billion! You cannot poison them, or trap them or gas them fast enough to overcome their fertility.”
Evolve(TM) will be available for direct sale to pest management professionals, and to the broader consumer market through distributors, on the company’s e-commerce portal and through big box retailers.
The company expects agribusiness and the pest management industry to be crucial to its future success. Currently, about 50 percent of its revenue comes from small e-commerce orders. SenesTech also sees potential in local government partnerships.
“As we are seeing significant increases within the government vertical driven by deployments in California and New England, our experience here is that our customers in the government sector require a longer sales cycle but are very sticky once they get on board. Hopefully, this will provide us a long-term tail wind,” Fruendt said.
Chesterman noted that the company’s most recent financial report for Q2 showed that revenue was up 31 percent sequentially compared to Q1, and Fruendt noted revenue has been consistently growing with an 87 percent CAGR over the past few years.
“We’ve experienced rapid growth over the past few years,” Chesterman said.
“Most recent trends confirm that growth is accelerating as our initiatives put place in the first half of the year take hold,” he added. “Our current goal is to take $1 million out of the annual cash expenses and we’re well on our way to achieving that goal. … (And) we have no long-term debt.”
For more information, visit the company’s website at www.SenesTech.com.
NOTE TO INVESTORS: The latest news and updates relating to SNES are available in the company’s newsroom at https://ibn.fm/SNES
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