NAPA, Calif., Aug. 14 Senetek PLC (OTC Bulletin Board: SNKTY), a Life Sciences company engaged in the research, development and commercialization of technologies that target the science of healthy aging, today announced revenues for its fiscal second quarter ended June 30, 2009 were $424,000, compared with $461,000 in the quarter ended March 31, 2009 and $691,000 reported in the comparable prior year period ended June 30, 2008.
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Net loss for the quarter was $1.299 million or $(0.17) per share, compared with net income of $257,000 or $0.03 per share in the second quarter of 2008. The Company noted that net income for the prior year quarter ended June 30, 2008 included other income of $1.125 million from a previously announced settlement.
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Revenues from the Pyratine family of proprietary Cytokinin-based skincare products -- new PyratineXR(TM) and Pyratine-6(TM) -- totaled $79,000 in the second quarter of 2009 compared to $169,000 in the second quarter of 2008. PyratineXR, unveiled in March 2009 at the American Academy of Dermatology's 67th Annual Meeting, represented approximately half of Pyratine sales in the quarter. The Company stated that a realignment of sales resources during the quarter from field representatives to a centralized sales operation contributed to this comparative decrease. The Company expects the decrease to be temporary with the positive effects of the realignment to be realized in future quarters.
Royalties on sales of monoclonal antibodies were $302,000, a reduction from the $476,000 in monoclonal antibody royalties in the second quarter of 2008. Sales of monoclonal antibodies have historically been subject to periodic fluctuations based on many factors including timing of research spending and business consolidations in the pharmaceutical market.
Gross profit margin for the second quarter of 2009 and 2008 was 66% and 62%, respectively, of revenue. Skincare gross profit rate for the three months ended June 30, 2009, increased to 94% from 83% for the three months ended June 30, 2008, due to sales of higher margin Pyratine-6 and Pyratine XR products in the current quarter. Pharmaceutical gross profit was 55% and 53%, respectively, for the three months ended June 30, 2009 and 2008.
The Company reported that there continues to be great interest in Invicorp(R) for the European Market and that the Company is diligently working to restore an out-of-stock situation due to its former licensee, Ardana BioScience Limited, entering receivership. Senetek expects to have finished product manufactured in the fourth quarter of 2009 and, thus, to begin receiving corresponding revenues for Named Patient Supplies in the UK and commercial sales in Denmark. The Company noted a recent addition to the general approval process in Europe that could impact future sales of Invicorp, creating a potential opportunity to accelerate approval in some countries such as Turkey, a country with a population of more than 36 million males. Invicorp is a highly safe and effective treatment for erectile dysfunction ("ED") that has received marketing authorization in Denmark and authorization for Named Patient Supply in the UK.
"The second quarter saw the Company take a variety of actions aimed at preparing for sales growth as we initiated the rollout of clinically-proven PyratineXR, our next generation Cytokinin-based skincare technology, into the marketplace," said Frank Massino, Chairman and CEO, Senetek PLC. "We enter the second half of the year with focus and momentum as we launch our first marketing campaign for PyratineXR, which has been shown to be highly beneficial for all skin types, while being ideal for sensitive skin caused by inflammatory skin conditions such as rosacea and acne, which result in facial redness in millions of people."
On July 22, 2009, the Company announced that PyratineXR is now available nationwide through select dermatologists and other physicians. The launch is being supported by conventional and new line media advertising in select markets nationwide. To view copies of the ads, visit http://www.senetekplc.com/ads. The Company expects to launch a comprehensive new website for PyratineXR, incorporating product information, educational resources and e-commerce capabilities among other features, during the third quarter at www.PyratineXR.com.
During the second quarter, a clinical study entitled "Topical PRK-124 (0.125%) Lotion for Improving the Signs and Symptoms of Rosacea," was published in the Journal of Drugs in Dermatology, a prestigious peer-reviewed dermatological publication (May 2009). The 12-week, open-label study concludes that PyratineXR (0.125% furfuryl tetrahydropyranyladenine) improved skin barrier function and the appearance of erythema (redness) and lesions (pustules and papules) associated with mild-to-moderate rosacea during 12 weeks of treatment.
In the latter stages of the quarter, Senetek opened its new Customer Care Center in Brentwood, TN to support the national rollout of PyratineXR as well as Pyratine-6. The Customer Care Center, located outside of Nashville, provides doctors (dermatologists, plastic surgeons, etc.) and others who provide PyratineXR and Pyratine-6 to consumers an on-call resource to answer any questions related to the products and for sales, distribution and fulfillment. Consumers can call the Customer Care Center to find Pyratine products in their hometowns, to have questions answered and to place orders. The Customer Care Center is led by Mark Ryals, Director of Customer Service, who brings nearly 25 years of pharmaceutical and related customer service and sales experience to Senetek. Ryals spent 12 years working with GlaxoSmithKline's dermatology portfolio.
In early June, Senetek announced a six year extension of existing rights under its agreement with the Czech Republic Institute of Experimental Botany to receive exclusive global licenses, for all applications, to any cytokinin developed, in-licensed or otherwise acquired by the Institute and the right to co-exploit with the Institute any cytokinins that Senetek does not elect to in-license. Senetek also has a right of first refusal before the Institute can license any of its non-cytokinin compounds to any third party for cosmeceutical or anti-aging dermatological applications. In addition, a new group of compounds, "supercytokin plus", has been added to the agreement. The Institute will also perform enhanced research activities in the areas of pre-selective assay, development of analytical methods, stability testing, large scale synthesis and molecular mechanism of action. Visit the Institute's website at www.ueb.cas.cz.
Clinical studies demonstrate that PyratineXR is an anti-aging compound that can help "Beat Red" with 67% less redness, 84% smoother skin and 41% more moisture. Physician-strength PyratineXR is clinically proven to relieve redness (erythema), soothe irritation, increase moisture and repair damaged skin quickly and effectively. Clinical studies have demonstrated that PyratineXR significantly reduces the appearance of lesions (papules and pustules), spider veins and dark spots. In addition, PyratineXR improves skin texture in just days while improving dry, flaky skin by restoring the skin's barrier function and increasing moisture retention. PyratineXR offers an option for inflammatory skin conditions such as rosacea, acne, sunburn and razor burn.
PyratineXR is available as a Lotion or Creme through select physicians throughout North America. Senetek plans to introduce three new products for PyratineXR later this year. For more information or to find a PyratineXR Physicians Network doctor, call 1-888-467-9728 or visit www.PyratineXR.com. To watch a brief video news segment about PyratineXR, visit www.youtube.com/watch?v=i8oa3N99e_o.
Conference Call: The Company will host a conference call to discuss its second quarter 2009 financial results on Thursday, Aug 27, 2009 at 9:00am PDT.
About Senetek PLC:
Senetek PLC (OTCBB:SNKTY) is a Life Sciences company engaged in the research, development and commercialization of breakthrough technologies that target the science of healthy aging. The company's extensive research collaborations have resulted in a strong pipeline of patented compounds and products with broad therapeutic applications and a leading presence in dermatology, most recently resulting in the development of kinetin, the active ingredient in the best-selling anti-aging product sold in the North American physician market. For more information, visit the company's websites -- www.Senetekplc.com, www.Pyratine6.com and www.PyratineXR.com -- or call 877-SENETEK (United States and Canada) or 707-259-6278 (International Locations).
This news release contains statements that may be considered 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements by their nature involve substantial uncertainty, and actual results may differ materially from those that might be suggested by such statements. Important factors identified by the Company that it believes could result in such material differences are described in the Company's Annual Report on Form 10-K for the year 2008 and subsequent Quarterly Reports on Form 10-Q. However, the Company necessarily can give no assurance that it has identified or will identify all of the factors that may result in any particular forward-looking statement materially differing from actual results, and the Company assumes no obligation to correct or update any forward-looking statements which may prove to be inaccurate, whether as a result of new information, future events or otherwise.
US dial-in: 877-204-0839 Int'l. dial-in: 706-758-7432 Conference ID: 24927388 Encore US dial-in: 800-642-1687 Encore Int'l dial-in: 706-645-9291 Same conference ID From 8/27 - midnight ET 8/29
SOURCE Senetek PLC
