Senesco Technologies Reports Fiscal Year 2009 Financial Results
September 29 2009 - 8:00AM
PR Newswire (US)
NEW BRUNSWICK, N.J., Sept. 29 /PRNewswire-FirstCall/ -- Senesco
Technologies, Inc. ("Senesco" or the "Company") (NYSE Amex: SNT)
reported financial results for the fiscal year ended June 30, 2009
("Fiscal 2009"). Net loss for Fiscal 2009 was $5.7 million, or
$0.30 per share, compared with a net loss of $4.6 million, or $0.26
per share, for the fiscal year ended June 30, 2008 ("Fiscal 2008").
The increase in net loss was primarily the result of an increase of
approximately $0.6 million in human health research and development
expenses related to the development of the Company's multiple
myeloma therapy, SNS-01, and an increase of approximately $0.6
million in non-cash expenses associated with the outstanding
convertible notes that were issued during Fiscal 2008. Fiscal 2009
and Recent Highlights -- Senesco announced results of efficacy,
toxicological and dose-finding studies in mice for its multiple
myeloma drug candidate, SNS-01. The results of these studies
indicated a maximum tolerated dose for SNS-01 of 2-4 times higher
than the proposed efficacious dose level. -- Senesco entered into
separate funding agreements, totalling $1.7 million, with Partlet
Holdings Ltd., certain members of Senesco's Board of Directors and
certain accredited investors, including Cato Holding Company, which
is the venture capital affiliate of Cato Research Ltd., a global
contract research and development organization currently assisting
Senesco with its SNS-01 development program; with the emphasis on
initiating a Phase I clinical trial for multiple myeloma. -- Dr.
Harlan W. Waksal, M.D., co-founder of ImClone Systems Incorporated,
became Chairman of Senesco's Board of Directors; Mr. Warren J.
Isabelle, CFA, founder and principal of Ironwood Investment
Management L.L.C., was appointed to the Board of Directors. --
Senesco reported results of H1N1 mouse influenza survival studies.
Mice treated with an siRNA against Senesco's Factor 5A gene had a
52% survival rate, as opposed to a 14% survival rate for mice that
received no treatment or a control siRNA. -- Data from Senesco's
multiple myeloma-focused preclinical studies were presented at the
2008 Annual Meeting of the American Society of Hematology and at
the American Society of Gene Therapy. Bruce Galton, President and
Chief Executive Officer of the Company, said, "We have continued to
build Senesco by generating additional preclinical data in multiple
myeloma for SNS-01, closing additional funding and adding Harlan W.
Waksal, M.D. and Warren J. Isabelle, CFA, to our Board. Our primary
focus continues to be working towards the filing of an
Investigational New Drug application for SNS-01." Revenue of
$275,000 for Fiscal 2009 consisted of milestone payments in
connection with certain agricultural license agreements. During
Fiscal 2008, the Company reported revenue in the amount of
$456,667, which consisted of initial fees and milestone payments
related to Senesco's agricultural development and license
agreements. Research and development expenses during Fiscal 2009
were $2.4 million, compared with $1.8 million during Fiscal 2008,
an increase of approximately 33%. This increase resulted primarily
from the expansion of Senesco's human health programs; specifically
the Company's multiple myeloma project, which was partially offset
by a decrease in the cost of Senesco's research agreement with the
University of Waterloo. The Company expects research and
development expenses to continue to increase as it expands its
research activities, particularly in the area of multiple myeloma.
General and administrative expenses were $2.2 million during Fiscal
2009, compared with $2.3 million during Fiscal 2008, a decrease of
about 4%. This slight decrease was primarily due to decreases in
stock-based compensation and investor relations expense. This
decrease was partially offset by increases in professional fees,
depreciation and amortization and other general and administrative
expenses. At June 30, 2009, Senesco had cash and investments of
$1.4 million, and working capital of $1.3 million. In addition,
upon the closing of its private equity financing on July 9, 2009,
the Company received aggregate net proceeds of approximately
$900,000. We believe that at the projected rate of spending, and
with the proceeds from the private placement completed in July 2009
and the proceeds from the proposed private placement pending NYSE
Amex approval, we should have sufficient cash and investments to
maintain our present operations for the next six months, as of June
30, 2009. About Senesco Technologies, Inc. Senesco Technologies,
Inc. is a U.S. biotechnology company, headquartered in New
Brunswick, NJ. Senesco has initiated preclinical research to
trigger or delay cell death in mammals (apoptosis) to determine if
the technology is applicable in human medicine. Accelerating
apoptosis may have applications to development of cancer
treatments. Delaying apoptosis may have applications to certain
inflammatory and ischemic diseases. Senesco takes its name from the
scientific term for the aging of plant cells: senescence. Delaying
cell breakdown in plants extends freshness after harvesting, while
increasing crop yields, plant size and resistance to environmental
stress. The Company believes that its technology can be used to
develop superior strains of crops without any modification other
than delaying natural plant senescence. Senesco has partnered with
leading-edge companies engaged in agricultural biotechnology and
earns research and development fees for applying its
gene-regulating platform technology to enhance its partners'
products. Certain statements included in this press release are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Actual results could
differ materially from such statements expressed or implied herein
as a result of a variety of factors, including, but not limited to:
the ability of the Company to consummate additional financings; the
development of the Company's gene technology; the approval of the
Company's patent applications; the successful implementation of the
Company's research and development programs and joint ventures; the
success of the Company's license agreements; the acceptance by the
market of the Company's products; success of the Company's
preliminary studies and preclinical research; competition and the
timing of projects and trends in future operating performance, the
Company's ability to comply with the continued listing standards of
the AMEX, as well as other factors expressed from time to time in
the Company's periodic filings with the Securities and Exchange
Commission (the "SEC"). As a result, this press release should be
read in conjunction with the Company's periodic filings with the
SEC. The forward-looking statements contained herein are made only
as of the date of this press release, and the Company undertakes no
obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances. (tables to follow)
SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY (A DEVELOPMENT STAGE
COMPANY) CONSOLIDATED STATEMENT OF OPERATIONS Year Ended June 30,
------------------------------ 2009 2008 2007 ---- ---- ----
Statement of Operations Data: Revenue $ 275 $ 457 $ 300 Operating
expenses: General and administrative 2,206 2,291 2,413 Research and
development 2,354 1,765 1,208 Total operating expenses 4,560 4,056
3,621 Loss from operations (4,285) (3,599) (3,321) Amortization of
debt discount and financing costs (478) (668) - Interest expense -
convertible notes (1,007) (434) - Interest income, net 43 100 69
Net loss $(5,727) $(4,601) $(3,252) Basic and diluted net loss per
common share $ (.30) $ (.26) $ (.19) Basic and diluted weighted
average number of common shares outstanding 18,888 17,660 16,917
Balance Sheet Data: Cash, cash equivalents and investments $ 1,431
$ 6,176 $ 658 Working capital 1,259 5,673 259 Total assets 7,122
10,643 3,322 Accumulated deficit (35,950) (30,223) (25,622) Total
stockholders' equity 5,668 9,836 2,690 Company Contact: Investor
Relations Contact: Senesco Technologies, Inc. FD Joel Brooks Brian
Ritchie Chief Financial Officer 212-850-5600 (732) 296-8400
DATASOURCE: Senesco Technologies, Inc. CONTACT: Joel Brooks, Chief
Financial Officer, Senesco Technologies, Inc., +1-732-296-8400, ;
or Investor Relations, Brian Ritchie, FD, +1-212-850-5600, Web
Site: http://www.senesco.com/
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