Senetek PLC (OTCBB: SNTKY), a life sciences product development
company targeting the science of aging, announced results for the
fourth quarter and year ended December 31, 2006.
Financial Highlights
Revenue for the year ended December 31, 2006 increased 44% to
$8,431,000, compared with $5,871,000 reported in 2005. Revenues for
the fourth quarter of 2006 increased 41% to $2,130,000, compared with
$1,511,000 for the same period in the prior year. 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 year ended December 31, 2006 totaled $1,883,000
or $0.03 per share compared to a net loss of $1,739,00, or $0.03 per
share in 2005. Net income for the year ended December 31, 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. Net income
for the fourth quarter of 2006 was $575,000, or $0.01 per share
compared with a loss of $801,000, or $0.01 per share in the fourth
quarter of 2005.
Cash flow from operations for the year ended December 31, 2006
increased to $1,290,000 compared with $(1,406,000) used in 2005
operations.
"Senetek delivered another solid quarter," said Frank J. Massino,
Senetek's Chairman and CEO. "We believe our performance in 2006
coupled with the recently announced agreement with Valeant has laid
the economic foundation to rapidly accelerate development of our rich
pipeline of proprietary compounds, to acquire products, and to achieve
our corporate goal of commercializing one new compound each year."
Mr. Massino continued, "Senetek's new focus will place increased
emphasis on direct marketing efforts of new products with our sights
on achieving greater revenues and larger economic benefits. This new
strategic direction will also redirect our product development efforts
to target unmet needs in the lucrative and growing prescription
dermatological therapeutic market."
On April 2, 2007, Senetek granted a paid up license for Kinetin
and Zeatin and assignment to Valeant of future royalties from other
Kinetin licensees, in return for a cash payment of $21 million,
forgiveness of a $6 million prepaid royalty credit reimbursement
obligation that Senetek otherwise would have owed to Valeant, and a
right to share in future royalties due to Valeant from other Kinetin
licensees through 2011,
The Company will conduct its quarterly teleconference call for
investors on Tuesday, April 24 at 9:00 a.m. Pacific, 12:00 p.m.
Eastern. 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. The
domestic dial-in number is 800-894-5910; the international dial-in
number is 785-424-1052, conference ID: SENETEK. Replay of the
conference call will be available until Tuesday, May 1. Domestic
Replay dial-in 800-839-5123, International Replay dial-in
402-220-2689, replay conference ID: SENETEK.
About Senetek PLC
Senetek PLC (OTCBB: SNTKY) is a life sciences product development
company with a portfolio of intellectual properties targeting the
science of aging, including skincare and dermatological therapeutics,
erectile dysfunction and nutrition. Kinetin, Senetek's lead commercial
product, is currently licensed and marketed by 14 pharmaceutical and
cosmeceutical companies, and Senetek has entered into an exclusive
global license with Valeant Pharmaceuticals for Senetek's proprietary
anti-aging skincare compound Zeatin. In addition, Senetek has entered
into exclusive licenses for Europe and North America, respectively,
for its patented combination drug treatment for erectile dysfunction,
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).
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 2007 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 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.