The Company: SenesTech is an Arizona based biotechnology company specializing in reproductive physiology for the purpose of humane animal population management. We have introduced a new paradigm in pest management by managing rodent populations through fertility control. Our product is safe for non-target species, humans, and the environment. We are currently focused on the U.S. market, where annual sales of rodenticides are estimated to be $1.5 billion, and we anticipate expanding to the global market in the near future.
Product/Technology: Our technology induces menopause in female rodents and affects the motility of sperm in males, resulting in sterility. Our first product is formulated specifically for rats and is delivered in liquid bait. By lowering the reproductive capacity of rats, the SenesTech product causes a gradual decline in rat populations. The reduced reproductive capacity allows the rat population to be maintained at a low level, which avoids the rebound effect commonly seen after poisoning. Additionally, our product is non-toxic and is safe for handlers and non-target species such as livestock or pets. It breaks down into two inert ingredients when it comes into contact with soil and consequently is environmentally neutral.
Market Need: In the United States, it is estimated that annual economic losses due to rodents exceeds $27 billion dollars a year. Rodents eat our crops, contaminate animal feed, carry disease, and damage our infrastructure. Clearly, current rodenticides are not working - in agricultural settings, mass transit areas, shipping hubs, or urban locations. Furthermore, accidental poisoning of non-target species and humans is a significant problem. The EPA has recognized this and is working to remove poisons from the pest control market. There is a need for a new strategy in rodent population management.
Market Opportunity: In 2010, The Fredonia group estimated that the world pesticide market was $45 billion. An external market analysis prepared by Foresight Science and Technology for SenesTech in 2011, suggested we could capture 2.5% of that market or $1.1 billion dollars. Additionally, we have produced an in-house estimate of $800 million as a market for agricultural use. This number was based on estimated agricultural areas that are experiencing rodent problems, the amount of product needed for treatment, and the approximate sales price.
Market Entry Strategy: We plan to negotiate distribution/licensing agreements by country or region as appropriate. Our first agreements will be in the U.S. We will expand to other markets as we progress through the regulatory process. We are partnering with a large, established agriculture pharmaceutical company who will handle manufacturing for the U.S. market and assist us with distribution to the agriculture market. We are in negotiation with a large pest management company to distribute our product to Municipalities and urban areas and eventual consumer use once EPA registration is received.
Management Team: SenesTech’s CEO, Dr. Loretta Mayer has 20 years of business experience and a Ph.D. in Biology. She is a co-founder of the company and co-inventor of our core technology. Our Chief Research Officer, Dr. Cheryl Dyer, holds a Ph.D. in Pharmacology. She has served as a Principal Investigator at The Scripps Research Institute, maintained an independently funded research program at Northern Arizona University, and is a co-founder of SenesTech. Supporting our management team is our seven member scientific advisory board, who bring a wealth of expertise in areas including ecology, wildlife fertility control, wildlife management, product development, toxicology, physiology, and product formulation.
Operations: Our current focus is on the US market. We recently completed a National Institute of Health grant funded study with the Mass Transit Authority (MTA) in New York, which tested the palatability of our oral fertility bait. Based on the results of this first study, we have been invited to conduct a follow-up study, which will start in July 2014. Chicago, the City of Boston and the City of Somerville, Massachusetts are also study sites slated to start in summer 2014. Finally, we will be testing our product in an agricultural setting on four pig farms in North Carolina. We are currently in the EPA registration process and expect our product to receive registration in Fall 2014. We are building manufacturing capability to produce our bait for our numerous studies, and we are negotiating licensing agreements to finish, market, and distribute our product within the U.S.
Financial Position: SenesTech is in the pre-revenue stage of its development and is funded by a combination of equity investment, debt, and research grants. We are currently preparing a final stock offering that we expect to take us through the final steps to product launch and revenue.