NAPA, Calif., Nov. 14 /PRNewswire-FirstCall/ -- Senetek PLC (OTC Bulleting Board: SNTKY), http://www.senetekplc.com/, a life sciences product development company targeting the science of aging to include skincare and dermatological therapeutics, erectile dysfunction, nutrition and cancer, today announced results for the third quarter ended September 30, 2006.
Revenues for the third quarter of 2006 were $2,027,000, a 23% increase from $1,644,000 for the third quarter of 2005. Revenues for the nine months ended September 30, 2006 were $6,301,000, a 44% increase from $4,361,000 for the comparable period in 2005. The increase is principally attributed to increased royalties from Valeant Pharmaceuticals International stemming from the July 2005 amendment to the Kinetin and Zeatin license agreement.
Net income for the third quarter of 2006 was $771,000 ($0.01 per share) compared to a loss of $266,000 in the third quarter of 2005. Net income for the nine months ended September 30, 2006 totaled $1,309,000 ($0.02 per share) compared to a net loss of $938,000 for the first nine months of 2005. Net income for the nine months ended September 30, 2006 included a $927,000 non- cash expense for the write-off of the debt discount on retirement of the Senior Secured Notes in March and a $250,000 gain on the sale of Reliaject (R) assets in March.
Shareholder net deficit for the third quarter of 2006 was ($1,617,000), compared to ($3,035,000) at December 31, 2005. This 47% increase in equity during the nine months ended September 30, 2006 is a vast improvement and an important step forward in our goal of a national listing on the AMEX or NASDAQ Capital Market exchanges.
Cash flow provided from operations for the nine months ended September 30, 2006 was $740,000 compared to $1,244,000 of cash used in operations for the nine months ended September 30, 2005.
Business Highlights
"Senetek delivered another solid quarter both operationally and strategically, highlighted by the considerable progress we made on several compounds and applications in our portfolio," said Frank J. Massino, Senetek's Chairman and CEO.
"In addition, we recently announced a collaboration with the Polish Academy of Sciences that strengthens our foothold in the anti-aging market as well as provides us an entree into the groundbreaking field of using interference RNA as a treatment for brain tumors. We are excited to be able to work with these great minds on such an important application and look forward to what we can achieve to help those afflicted overcome such a horrible disease. This relationship will benefit Senetek greatly and it helps firmly set the foundation for the continued growth of the Company."
Mr. Massino continued, "We also completed a twelve week clinical trial of 4HBAP and are extremely encouraged by the results that were seen in alleviating the signs of aging. The trial showed significant decreases in fine lines and course wrinkles around the eyes, as well as a significant improvement in the appearance of mottled hyperpigmentation and a dramatic improvement in the roughness of skin after just two weeks. With the efficacy and safety studies successfully completed, 4HBAP is now ready for commercialization."
"Looking to the future, we are excited about the opportunities that lie ahead as we continue to progress with our world class partners, moving toward commercialization of new compounds and applications and generating increased value for our customers, partners and shareholders."
The Company will conduct its quarterly teleconference call for investors on Friday, November 17 at 9:00 a.m. Pacific, 12:00 p.m. Eastern. The domestic dial-in number is 800-690-3108, the international dial-in number is 973-935- 8753, conference ID: 8109360. Mr. Frank J. Massino, Chairman & CEO and Mr. William F. O'Kelly, Chief Financial Officer, will discuss the third quarter operating results and the outlook for the remainder of 2006. Replay of the conference call will be available until November 24, 2006. Domestic Replay dial-in 877-519-4471, International Replay dial-in 973-341-3080, replay conference ID: 8109360.
About Senetek:
Senetek is a life sciences product development company with an extensive array of intellectual properties covering in excess of 2000 patented and patent applied for compounds and uses targeting the science of aging to include skincare and dermatological therapeutics, erectile dysfunction, nutrition and cancer through RNA interference technology.
The Company's lead commercial product, Kinetin, is currently licensed and marketed by 14 pharmaceutical and cosmeceutical companies such as Valeant Pharmaceuticals and The Body Shop. In addition, the Company has entered into commercial arrangements for its proprietary anti-aging skincare compound, Zeatin, its patented combination drug treatment for erectile dysfunction, Invicorp(R), its novel drug delivery system, Reliaject(R) as well as its proprietary diagnostic monoclonal antibodies.
For additional information, please visit Senetek PLC's Web site at http://www.senetekplc.com/.
Safe Harbor Statement:
This news release contains statements that may be considered 'forward- looking statements' within the meaning of the Private Securities Litigation Reform Act, including those indicating the financial outlook for fiscal 2006 and those that might imply commercial potential and successful evaluation and development of new compounds. 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/A for the year 2005. 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.
KCSA Contacts:
Todd Fromer / David Burke
212-896-1215 / 1258
