NAPA, Calif., Aug. 13 /PRNewswire-FirstCall/-- Senetek PLC , a specialty dermatology and skin care company targeting the science of aging, today announced financial results for the quarter ended June 30, 2007:
Revenues for the second quarter 2007 were $471,000 compared to $2,005,000 for the same period in the prior year. The decline is attributed to the grant of a paid up license to Valeant Pharmaceuticals Inc. in the first quarter of 2007 which resulted in no Kinetin and Zeatin royalty revenues in the second quarter of 2007. Revenues for the six months ended June 30, 2007 were $25,779,000 compared to $4,274,000 for the same period in 2006. Revenues for the first half of 2007 included $24,750,000 recognized in conjunction with the previously announced grant of a paid up license for Kinetin and Zeatin to Valeant Pharmaceuticals Inc.
The Company realized a net loss of $397,000 (a loss of $0.01 per share) in the second quarter of 2007 compared to net income of $551,000 ($0.01 per share) in the second quarter of 2006. Net income for the six months ended June 30, 2007 totaled $21,336,000 ($0.35 per share) compared to net income of $538,000 ($0.01 per share) for the first six months of 2006. Net income for the six months ended June 30, 2007 included the effect of the previously announced grant of a paid up license for Kinetin and Zeatin to Valeant Pharmaceuticals Inc. and $1,320,000 from settlement of claims against a professional services provider for past performance related matters. The net income for the six months ended June 30, 2006 included a $927,000 non-cash expense for the write-off of the debt discount on retirement of the Senior Secured Notes and a $250,000 gain on the sale of Reliaject(R) assets.
In other developments during the quarter and through the date of this release:
-- The Company announced a Marketing Collaboration Agreement for its second-generation cytokinin with Triax Aesthetics LLC, a Cranford, New Jersey based company focused on quality of life for patients with dermatologic conditions. -- Under the terms of the Agreement, Senetek has granted Triax an exclusive license in the ethical market channel in the United States and its territories, Canada and select Middle East countries. All product packaging will be labeled Senetek/Triax. -- Senetek will be responsible for production and supply of products, will contribute periodic sales and marketing payments totaling $4.5 million in the first year of the Agreement and will participate in the product marketing strategy. In return, Senetek will receive all net product revenues in the first year of the Agreement, with a guaranteed minimum of $10.8 million in 2008. The Agreement calls for increased minimum sales annually after the first year. Subsequent to the first year of the Agreement, the companies will share net revenues on a 50/50 basis. Triax will be responsible for all sales, marketing and order fulfillment during the life of the Agreement. -- Significant advancement was made towards the successful bulk synthesis of compound AK801 with finalization expected in September of this year. -- The Company initiated safety testing of compound PA100 and expects results in the fourth quarter of this year.
“Senetek financial results for the second quarter of 2007 were in line with the expectations set when we announced the Valeant paid up license transaction earlier this year,” said Frank J. Massino, Senetek’s Chairman and CEO. “We continue to be in the strongest financial condition that we have enjoyed in many years with $22 million of cash on hand at the end of the second quarter. Our recently announced marketing collaboration with Triax Aesthetics LLC and our advancements on new compounds are significant milestones in our strategy. Our marketing collaboration with Triax is the beginning of a new and superior business model which will increase revenues and create brand recognition for Senetek”.
Senetek will conduct a teleconference call for investors on Friday, August 17, 2007 at 9:00 a.m. Pacific, 12:00 p.m. Eastern. The domestic dial-in number is 877-593-8638; the international dial-in number is 706-634-9240, conference ID 13177281. Mr. Frank J. Massino, Chairman & CEO and Mr. William F. O’Kelly, Chief Financial Officer, will discuss Company operations. Replay of the conference call will be available until August 24, 2007. Domestic Replay dial-in 800-642-1687, International Replay dial-in 706-645-9291, replay conference ID 13177281.
About Senetek PLC
Senetek PLC is a specialty dermatology and skincare company with a portfolio of intellectual properties targeting the science of aging, including skincare and dermatological therapeutics, erectile dysfunction and nutrition. Senetek recently granted Valeant Pharmaceuticals a paid up license for Senetek’s first generation patented skin care active ingredient Kinetin and its analog Zeatin in return for $21 million cash and forgiveness of $6 million prepaid royalty credit, and is negotiating third party license agreements for new patent-pending second generation dermatological active ingredients and is completing development of a number of additional compounds. In addition, Senetek has entered into exclusive licenses for Europe and North America, respectively, for Invicorp(R), has an exclusive manufacturing distributorship for its proprietary diagnostic monoclonal antibodies, and recently sold, with retained rights of profit participation, its patented drug delivery system, Reliaject(R).
For more information, visit the company’s website at http://www.senetekplc.com.
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 2006. 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.
Senetek PLC
CONTACT: William F. O’Kelly, Chief Financial Officer of Senetek, PLC,+1-707-226-3900, ext. 102
Web site: http://www.senetekplc.com/
