SenesTech Announces Exclusive Distribution Agreement for Evolve™ Soft Bait in The Netherlands

Rhea-AI Summary

SenesTech, Inc. (SNES) partners with Q-chem to distribute Evolve, a fertility control product for pest management in Europe. The collaboration aims to reduce reliance on toxic rodenticides and introduce environmentally friendly solutions.

Insights

Market Research Analyst

The distribution agreement between SenesTech, Inc. and Q-chem signals a strategic expansion of SenesTech's operations into the European market, leveraging Q-chem's established distribution network. The focus on environmentally friendly and sustainable pest control products aligns with the growing consumer and regulatory demand for such solutions. This move could potentially open up new revenue streams for SenesTech and diversify its market presence, which is crucial in the highly competitive pest control industry.

Moreover, the mention of initial orders and annual minimums suggests a commitment from Q-chem, indicating a positive outlook for the product's uptake within the market. The collaboration on regulatory approvals is also significant, as it may accelerate the product's time-to-market, thereby enhancing SenesTech's competitive edge in the European Union, where stringent environmental regulations are reshaping the pest control industry landscape.

Environmental Policy Expert

The European Union's goal to phase out anti-coagulant rodenticides due to their toxic profile represents a broader shift towards more sustainable and environmentally conscious practices. SenesTech's Evolve, as a non-biocidal fertility control product, could become a key player in this transition. The product's alignment with the Integrated Pest Management (IPM) program in The Netherlands exemplifies how regulatory trends can create market opportunities for innovative solutions.

Evolve's exemption from the European Biocidal Product Directive and its classification under the less stringent Veterinary Product Directive could offer a significant advantage in terms of reduced regulatory hurdles and associated costs. This strategic positioning could not only benefit SenesTech but also set a precedent for other companies developing non-toxic alternatives in pest control, potentially influencing future regulatory policies and market dynamics.

Financial Analyst

The financial implications of the distribution agreement for SenesTech are multifaceted. The structure of the deal, including initial orders and annual minimums, provides a level of revenue predictability and stability. However, investors should consider the costs associated with market expansion, such as marketing, product localization and potential adaptations to meet specific European regulations. The expected registration at the end of 2024 suggests that revenue impact may not be immediate, but rather a long-term growth strategy.

It is also important to monitor the performance of the Evolve product post-launch, as its success in the Netherlands could serve as a bellwether for potential expansion to other EU countries. As SenesTech navigates the European regulatory landscape and consumer market, its stock valuation could be influenced by both the perceived potential of the new market and the actual financial performance following the product's introduction.

PHOENIX, Feb. 15, 2024 /PRNewswire/ -- SenesTech, Inc. (Nasdaq: SNES; "SenesTech" or the "Company"), the leader in fertility control to manage animal pest populations, today announces entry into a distribution agreement with Q-chem, a pest control product supplier in The Netherlands.

"Q-chem is a perfect partner for SenesTech as we begin our expansion into Europe, and Evolve™ fits into their portfolio perfectly. They have a stated focus on new, environmentally friendly and sustainable products for pest control, and they distribute pest control products in The Netherlands and specifically non-biocidal products throughout Europe," said Joel Fruendt, SenesTech's President and CEO.

"The Netherlands first implemented an Integrated Pest Control (IPM) program four years ago for Norwegian rats with the explicit goal of reducing the reliance on anti-coagulant rodenticides. This is part of an overall European Union goal to terminate the use of all anti-coagulants due to their toxic profile. These highly toxic anti-coagulants remain on the market, however, due to the fact that there are no alternatives yet. Therefore, there is a great need for substitutes. Evolve will be the leader in controlling rats with fertility control, arriving first in the Netherlands and in the European Union," said Klaas Lusthoff, CEO of Q-chem.

"Evolve is a non-biocidal product and does not fall under the time- and money-consuming procedure of the European Biocidal Product Directive (528/2012). Evolve undergoes a considerably less complicated process of less toxic substances via the Veterinary Product Directive in The Netherlands. Q-chem has helped Senestech on this regulatory procedure, and the registration is expected at the end of 2024," continued Mr. Lusthoff. "Evolve is perfectly suited for our strategy and in our portfolio of products, and Q-chem is looking forward to introducing Senestech products in Europe."

The agreement with Q-chem includes initial orders and annual minimums and provides for Q-chem taking the lead on regulatory approvals.

About SenesTech

We are committed to improving the health of the world by humanely managing animal pest populations through fertility control. We are experts in fertility control to manage animal pest populations. We invented ContraPest, the only U.S. EPA-registered contraceptive for male and female rats, and Evolve, an EPA-designated minimum-risk contraceptive currently offered for rats. ContraPest and Evolve fit seamlessly into all integrated pest management programs, significantly improving the overall goal of effective pest management. We strive for clean cities, efficient businesses and happy households – with a product designed to be humane, effective and sustainable.

For more information visit https://senestech.com/ 

About Q-chem

Q-chem is a leading company in pest control with biocidal, non-biocidal and sustainable products, and sells these products for professional- and non-professional use in The Netherlands. Q-chem also has specifically non-biocidal products which are sold throughout Europe.

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Such forward-looking statements include, among others, our belief that Q-chem is a perfect partner for SenesTech as we begin our expansion into Europe, and that Evolve™ fits into their portfolio perfectly; the belief that Evolve will be a pioneer in controlling rats, arriving first in the Netherlands in the European Union; and our expectation that registration for Evolve in The Netherlands will come at the end of 2024; and the belief that Evolve is perfectly suited for Q-chem's strategy and in its portfolio of products . Forward-looking statements may describe future expectations, plans, results or strategies and are often, but not always, made through the use of words such as "believe," "may," "future," "plan," "will," "should," "expect," "anticipate," "eventually," "project," "estimate," "continuing," "intend" and similar words or phrases. You are cautioned that such statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, the successful commercialization of our products; market acceptance of our products; our financial performance, including our ability to fund operations; our ability to regain and maintain compliance with Nasdaq's continued listing requirements; regulatory approval and regulation of our products; and other factors and risks identified from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management's assumptions and estimates as of such date. Except as required by law, we do not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise.

CONTACT:
Investors:
Robert Blum, Joe Dorame, Joe Diaz, Lytham Partners, LLC,
602-889-9700, senestech@lythampartners.com

Company:
Tom Chesterman, Chief Financial Officer, SenesTech, Inc.,
928-779-4143 x825

 

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SOURCE SenesTech, Inc.

FAQ

What is the ticker symbol for SenesTech, Inc.?

The ticker symbol for SenesTech, Inc. is SNES.

What product is SenesTech partnering with Q-chem to distribute in Europe?

SenesTech is partnering with Q-chem to distribute Evolve, a fertility control product for pest management in Europe.

What is the goal of the Integrated Pest Control (IPM) program in The Netherlands?

The goal of the Integrated Pest Control (IPM) program in The Netherlands is to reduce reliance on anti-coagulant rodenticides.

What is the regulatory process for Evolve in Europe?

Evolve undergoes a less complicated process via the Veterinary Product Directive in The Netherlands, avoiding the European Biocidal Product Directive.

When is the registration of Evolve expected in The Netherlands?

The registration of Evolve is expected at the end of 2024 in The Netherlands.