Senetek Reports on Strategic Milestones Achieved in Repositioning Strategy
NAPA, Calif., Aug. 9 /PRNewswire/ -- Senetek PLC (Nasdaq: SNTKY) today
announced that the Company has achieved several strategic milestones in its
restructuring/repositioning efforts.
Consolidation -- Senetek's operations will be fully operational in Napa,
California by the beginning of the fourth quarter. Offices in London and
St. Louis are being closed. The activities previously conducted at the St.
Louis facility and substantially all of the activities previously conducted in
England will be moved to the Company's Napa, California-based headquarters.
Operations -- The Company has downsized its employee base from 52 to less
than 20 full-time employees. The monthly cash burn rate has been reduced from
in excess of $1 million to less than $500,000. Cash reserves and accounts
receivables have increased to approximately $4 million and operating losses
have decreased dramatically from an average of $3.4 million per quarter in
1998, to less than $1.6 million in the first quarter of 1999. The second
quarter 10Q will be published on August 16th and will continue to show a
decreasing trend in operating losses.
Management -- The Company's recent appointment of Dr. George Van Lear as
President and Chief Operating Officer coupled with the expertise provided by
Latham & Watkins, an internationally renowned law firm, YRCR Limited, a
consulting firm responsible for over 500 product regulatory and licensing
approvals, Lachman Inc., U.S. regulatory consultants and BDO Stoy Howard as
auditors, are currently enabling Senetek to fully exploit its strategic growth
intiatives.
Skin Care Sector -- The Mill Creek product line has been licensed to
Oregon-based USITC, who will assume full control of Mill Creek's
manufacturing, quality control, marketing and distribution. Senetek received
an up-front licensing fee, the purchase of existing inventory and secured
quarterly royalty payments. Additionally, USITC has an option to purchase the
product line for the greater of a one-time adjusted gross sales, or $2.8
million.
The Allercreme product line has been licensed to Quinlan Incorporated
d/b/a Omega Distributing. Terms of the transaction are similar to Mill Creek
however Senetek will retain control of manufacturing.
Senetek's anti-aging compound, Kinetin, was recently licensed to ICN
Pharmaceuticals (NYSE: ICN). ICN has commenced marketing the product under
the trade name Kinerase(R) and the product is gaining momentum through DTC
(direct-to-consumer) campaigns and increased recognition by the physician
community as evidenced by the endorsement of an acclaimed dermatologist on
ABC's nationally syndicated show, "The View" and recent advertisements in
publications, specifically, Parade Magazine. Expected to generate 6,000
responses, the advertisement generated in excess of 22,000 responses.
Additionally, favorable Kinetin clinical data was featured in Skin &
Allergy News and ICN is preparing for aggressive product launches in Canada
and South America.
Osmotics Corporations is experiencing success in its sales of Kinetin
Cellular Renewal System in the U.S. and the U.K. Osmotics is planning
additional product launches in well-researched demographic areas as well as
product line extensions.
Senetek is in advanced negotiations with potential strategic partners in
other distribution channels and other geographic markets, including the
Asia-Pacific markets, to further enhance sales of Kinetin.
Drug Delivery/Adrenaject(TM)(Reliaject(TM)) -- Senetek's Reliaject(TM),
the Company's proprietary drug delivery device, has been modified to meet FDA
requirements for the administration of epinephrine. Management anticipates
that stability data on Adrenaject(TM) (epinephrine packaged in Reliaject(TM))
will be completed during the fourth quarter of 1999, with commercial launch in
late 2000, subject to receipt of FDA approval. Novacol Pharmaceutical of
Canada, Senetek's contract filler for Adrenaject(TM) has made significant
investments in its facility ensuring compliance with FDA good manufacturing
practices.
Senetek has licensed Adrenaject(TM) to ICN for marketing worldwide. Under
the license and supply agreement, Senetek will receive a licensing fee of
$3 million upon FDA approval and product launch and will receive additional
payments upon the sale of the product to ICN. ICN is handling the Canadian
regulatory application. Senetek is currently in negotiations with ICN and
other major publicly-traded pharmaceutical companies for the utilization of
Reliaject(TM) for additional indications.
Biopharmaceutical Division/Invicorp(TM) -- Senetek's treatment for
Erectile Dysfunction, eliminating many of the side effects and
contraindications associated with existing therapies, was recommended by New
Zealand's Medicines Assessment Advisory Committee for approval for the
treatment of ED. The Company also received conditional approval from the
Medicines Control Agency of the U.K for one dosage form. which provides the
Company the opportunity to out-license the product. The Danish Medicines
Authority has approved Invicorp(TM) for the treatment of ED and has officially
been appointed as Senetek's agent for the Mutual Recognition Process for
attaining regulatory approval of the product in other participating European
countries, including France, Germany, Italy and Spain. Evaluation of
potential partners as well as a review of alternative delivery methods
including needleless injection are under investigation.
A peer review of Invicorp(TM) appeared in the March British Journal of
Urology, International, entitled "Treating Men with Predominantly
Non-Psychogenic Erecitle Dysfunction with Intracavernosal Vaso-Active
Intestinal Polypeptide and Phentolamine Mesylate - Invicorp(TM) - a Novel
Auto-Injector System, a Multi-Center Double Blind Placebo Study." The study
concluded that Invicorp(TM) was a safe and effective means of treating male
erectile dysfunction of primarily non-psychogenic etiology.
"Senetek has made great strides in the past months as evidenced by the
commercialization of Kinetin in the Ethical and Prestige markets, the
appointment of The Danish Medicines Authority as agent for the European Mutual
Recognition Process, the upgrading of key personnel and advisors, along with
the implementation of cost saving programs. It is our goal to continue to
build upon these positive steps forward and create shareholder value," stated,
Frank Massino, Chairman and CEO.
Senetek PLC is a science-driven biotechnology company providing solutions
to aging-related heathcare problems, in the form of biopharmaceuticals, drug
delivery systems and skincare.
THE SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995. This press release contains forward-looking statements that
involve risks and uncertainties including the risks detailed from time to time
in the Company's Securities and Exchange Commission filings.
SOURCE Senetek PLC
Web Site: senetekplc.com
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