February 2008
Senesco Technologies, Inc. ("Senesco" or the "Company") (AMEX:SNT) reported financial results for the three months ended December 31, 2007.
Net loss for the three month period ended December 31, 2007 was $1.3 million, or $0.07 per share, compared with a net loss of $1.1 million, or $0.07 per share, for the three month period ended December 31, 2006. This increase in net loss was primarily the result of a decrease in revenue and an increase in expenses associated with the outstanding convertible notes that were issued during the current fiscal year, which was partially offset by a decrease in operating expenses.
Quarterly and Recent Highlights
- Senesco closed on an additional gross amount of $5.5 million of its previously announced private placements with YA Global Investments, LP (“YA Global”) and Stanford Venture Capital Holdings, Inc. (“Stanford”). Through January 31, 2008, Senesco has now closed on an aggregate of $7 million of the $10 million private placements of secured convertible debentures and warrants and has met the three triggering milestones necessary in order to fix the conversion price of the convertible notes issued to YA Global and Stanford at $0.90 per share of common stock.
- Senesco selected Cato Research, a leading contract research organization (“CRO”), to assist the Company with its goal of initiating a clinical trial.
- Senesco initiated and announced the results of certain preclinical animal studies focused on multiple myeloma. In the studies, SCID (severe combined immunodeficiency) mice were injected subcutaneously with human multiple myeloma cancer cells to form myeloma tumors in their flanks. Treated mice were injected intratumorally with Factor 5A therapy encapsulated in nanoparticles, while control mice received a nanoparticle without the Factor 5A therapy. One of the dosing regimens showed evidence of significant tumor regression relative to the untreated control mice, while the other showed a diminished rate of tumor growth along with some regression.
“As our recent accomplishments indicate, we continue to execute on our strategy,” said Bruce Galton, President and CEO of Senesco. We believe we have advanced our human health preclinical research program via the selection of a CRO and the successful completion of certain in-vivo preclinical studies in multiple myeloma. Our objectives for the remainder of the year are to continue to evaluate dosing regimens and encapsulation vehicles in preclinical multiple myeloma cancer models, to identify contract manufacturing centers to produce cGMP materials, to plan and carry out the necessary toxicology studies, and to work with our CRO to begin preparation of an Investigational New Drug Application.”
• Revenue of $6,250 for the three month period ended December 31, 2007 consisted of the amortized portion of previous milestone payments received in connection with certain license agreements. During the three-month period ended December 31, 2006, revenue of $181,250 consisted of initial fees, milestone payments and the amortized portion of previous milestone payments received in connection with certain development and license agreements.
• Research and development expenses during the three month period ended December 31, 2007 were $392,254, compared with $239,395 during the three month period ended December 31, 2006. This increase resulted from an increase in the budget for the banana field trials, an unfavorable exchange rate variance in connection with our research agreement at the University of Waterloo and the initiation of certain human health-related research projects that were not in progress during the three month period ended December 31, 2006. The Company expects research and development expenses to continue to increase as it expands its research activities, particularly in the area of human health.
• General and administrative expenses were $586,000 for the three month period ended December 31, 2007, compared with $1.1 million during the three month period ended December 31, 2006. This decrease was primarily due to lower stock-based compensation expense, which was partially offset by an increase in depreciation and amortization.
• At December 31, 2007, Senesco had cash, cash equivalents and investments of $5,135,644. With the remaining potential gross proceeds of our previously announced $10 million financing, Senesco should be able to operate according to the Company’s current business plan for the next 21 months. As previously disclosed, the Company has closed on $7 million of the $10 million financing. The receipt of the remaining $3 million of proceeds is dependent upon entering into certain supply agreements with third party manufacturers. If Senesco does not meet all or some of the foregoing funding milestones, then the current $5.1 million is only sufficient for the next 13 months.
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