SenesTech, Inc. engages in developing and commercializing a proprietary technology for managing animal pest populations, initially rat populations, through fertility control.
The company has two product lines of fertility control products: ContraPest and Evolve.
ContraPest, the company's initial product, is a novel liquid bait in the pest control industry, containing the active ingredients 4-vinylcyclohexene diepoxide ('VCD') and triptolide. ContraPest targets the reproductive systems of both...
SenesTech, Inc. engages in developing and commercializing a proprietary technology for managing animal pest populations, initially rat populations, through fertility control.
The company has two product lines of fertility control products: ContraPest and Evolve.
ContraPest, the company's initial product, is a novel liquid bait in the pest control industry, containing the active ingredients 4-vinylcyclohexene diepoxide ('VCD') and triptolide. ContraPest targets the reproductive systems of both male and female Norway and roof rats beginning with the first breeding cycle following consumption, which can lead to sustained reductions of the rat population. ContraPest is a highly palatable liquid formulation that reduces fertility in both male and female rats. The high fat content and sweet taste of ContraPest promotes sustained consumption even when other sought-after food sources are present. In both field and laboratory settings, consumption of ContraPest occurs even in the presence of abundant water sources and plentiful food choices, including animal feed, trash and other options. Additionally, ContraPest does not cause illness in rats, and, therefore, it does not change behavior or result in bait aversion. Accordingly, ContraPest offers a new tool used in coordination with rodenticides as part of an integrated pest management program. Additionally, ContraPest can be successfully used as an alternative to traditional rodenticides altogether, an important option in the increasing number of jurisdictions that are restricting the use of second-generation anti-coagulant products.
The registration process with the EPA for ContraPest began on August 23, 2015. On August 2, 2016, the EPA granted an unconditional registration for ContraPest as a Restricted Use Product ('RUP'), due to the need for applicator expertise for deployment. On October 18, 2018, the Environmental Protection Agency (EPA) approved the removal of the RUP designation and was reclassified as a general-use pesticide. ContraPest is registered in all 50 states, 49 of which have approved the removal of the RUP designation, as well as the District of Columbia and five major the United States (U.S.) territories. In certain cases, the company registrations are conditional and require completion of testing. The company continues to actively seek to comply with these requirements. On March 10, 2022, the EPA granted a sub-label for ContraPest allowing for an alternative delivery system in a hanging bait station designed to target roof rat habitats and infestations, marketed as Elevate Bait System.
The company is continuously enhancing ContraPest to align with the unique needs and environments of its customers in its target verticals while simultaneously pursuing regulatory approvals and amendments to the existing U.S. registration to broaden its use and marketability. When regulatory and financial conditions permit, it will seek regulatory approval for additional jurisdictions beyond the United States.
In November 2023, the company launched its latest product, Evolve, a soft bait containing the active ingredient cottonseed oil. Evolve limits reproduction of male and female rats after one to two breeding cycles following consumption. Evolve is being marketed for use in controlling rat populations as a minimum risk pesticide under the U.S. Environmental Protection Agency Federal Insecticide, Fungicide, and Rodenticide Act, Section 25(b). The company must obtain registration from the various state regulatory agencies that do not accept the federal exemption. As of December 31, 2023, the company is authorized to sell Evolve in 30 states.
Integrated Pest Management and Fertility Control
The most effective, long-term way to manage rats is by using a combination of tools that work together to magnify the efficacy of the pest management protocol; Integrated pest management (IPM) is based upon this concept. An effective IPM program needs to reduce the existing rat population while preventing the population from rebounding. Based on company field research, the addition of a fertility control product to an IPM program has demonstrated improved efficacy with sustained population suppression. Maintaining a fertility control program reduces the reproduction and therefore the risk of future population spikes, known in the industry as the rebound effect.
Other Applications
While the company's proprietary technology is effective on rat species, its technology can be applied to other mammalian species. It has explored and continue to evaluate fertility control in mice, feral dogs, and other species. This preliminary data indicates potential for the continued development of fertility control technology in general. The company's size of the rat control market is sufficient for its near-term focus. The company remains open to the potential to license its technology to other strategic partners to explore its applicability to other mammalian species.
Business Strategy
The key elements of the company's strategy are ending user awareness and adoption; and tailored value propositions.
Marketing and Sales Approach
ContraPest is differentiated in what is otherwise a very crowded pest control market. It is the only product registered with the EPA that restricts fertility in both male and female rats and is designed to be non-lethal. As first and second-generation anti-coagulants come under increased scrutiny for non-target accidental consumption or for bioaccumulation with impact on non-target species as rodenticides travel up the food chain, their use is being restricted or even banned in select areas across the United States and globally. These increasing restrictions and bans create an opportunity for ContraPest, as industry professionals are looking for effective tools to serve their customers and gain control of rat populations through nontraditional means.
Like ContraPest, Evolve is also differentiated in the pest control market due to its unique approach to restrict fertility in rats as opposed to other lethal means. In addition, Evolve meets the EPA's Federal Insecticide Fungicide and Rodenticide Act (FIFRA) Section 25(b) minimum risk pesticide conditions. Evolve is exempt from federal registration because it poses little to no risk to human health and the environment and is made from food ingredients, within tolerances of exemption for both food and nonfood applications, which allows it to be used in agricultural applications.
Because the pest industry in the United States has demonstrated a reluctance to adopt new technologies, the marketing of fertility control has primarily been aimed at end-user awareness, creating pull through demand with Pest Management Providers ('PMP') by applying pressure for PMPs to use fertility control as part of their IPM. Additionally, within the company's target verticals, agribusiness, commercial, distributors, e-commerce, pest management, municipalities, and zoos and sanctuaries, many large targets employ internal pest management teams as opposed to contracting with service providers. For these reasons, the end-user is the company's primary target in order to grow market penetration for fertility control products.
Three core sales channels drive revenue allowing the company to reach a wider customer base and target different segments of the market.
e-Commerce: E-commerce provides a hub to push end-users for further education, as well as providing 24/7 availability for purchasing products and managing subscriptions.
Field Sales: Field sales allow for personal interaction, consultation, and development of potential customers. Field sales representatives, in charge of regional territories across the United States, focus on the larger account segments, attending trade shows and educational opportunities within target verticals.
Distributors and resellers: Distributors and resellers serve as an expansion of the company's sales team, increasing the company's reach by leveraging the established networks and connections of these third-party businesses. Additionally, the logistics and marketing support offered through these partners reduces cost and effort required to expand the company sales.
Other Potential Products
The company has begun work on the application of ContraPest and Evolve on other species, such as mice, and expect to introduce an additional product during 2024.
Government Regulation and Product Approval
The EPA granted registration for ContraPest effective August 2, 2016, and as of July 12, 2018, the company had received registration for ContraPest in all 50 states, the District of Columbia, and five major U.S. territories.
In addition to the EPA registration of ContraPest in the United States, the company must obtain registration from the various state regulatory agencies prior to selling in each state.
Intellectual Property and Other Proprietary Rights
Patent Filings
The company's intellectual property portfolio supporting ContraPest consists of nine international patent filings (in the United States, Europe, Canada, Brazil, Russia, Japan, Mexico, South Korea, and Australia) addressing the ContraPest compound. Claims directed toward the compound include composition-of-matter involving a diterpenoid epoxide or salts thereof in combination with an organic diepoxide, use claims for inducing follicle depletion and for reducing the reproductive capability of a mammalian animal or non-human mammalian population. Issued claims will have a patent term extending to 2033 or longer based on patent term determinations in each of the filing countries. The novelty of ContraPest extends to its method of field distribution and has required innovation to perfect the dosing of the company's product to rodents. The company has filed U.S. and international patent applications covering its novel bait station device to effectively and efficiently deliver its rodent bait at individual bait sites that would, if issued, offer patent term protection through at least 2036.
Trade Secrets and Trademarks
The company owns and maintains the ContraPest trademark and have initiated registration for Evolve. The company intends to register new trademarks for products from its evolving rodenticide product line and for products for mammalian species beyond rodentia.
Research and Development
The company's research and development expenses were $1.2 million for the year ended December 31, 2023.
History
SenesTech, Inc. was founded in 2004. The company was incorporated in Nevada in 2004 and reincorporated in Delaware in 2015.
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