By M. Marin
NASDAQ: SNES
READ THE FULL SNES RESEARCH REPORT
Rodent infestations are pervasive, but problem is often undisclosed
SenesTech, Inc. (NASDAQ: SNES) is a leader in solutions for managing and reducing rodent populations. Rodent infestations are a pervasive but often undisclosed problem. The recent outbreak of hantavirus aboard the MV Hondius cruise ship shines a light on the magnitude and scope of issues that can result if rodent populations are not managed to contain the spread of disease and minimize the human and economic impact of food contamination, in our view.
Global public health crisis shines a light on need to control rodent populations
According to the Centers for Disease Control (CDC), “Hantaviruses are a family of viruses which can cause serious illnesses and death…They are spread mainly by rodents.”
AcfiPress Noticias Canarias, CC BY 4.0, via Wikimedia Commons
SNESdevelops birth control solutions to contain animal pest populations through fertility control
SenesTech has a growing portfolio of solutions to help control rodent populations through birth control. According to the National Institutes of Health (NIH), “Rodent infestation is a substantial global issue …. It is necessary to take measures to control rodent damage in order to protect human health and wealth… “
The use of chemical agents -- the most widely used rodent control measure -- is often sub-optimal and raises concerns about environmental safety and sustainable control, as well as ethical concerns, as the application of chemical agents can cause excessive suffering to rodents and often inadvertently to other non-targeted animal populations.
Many regulators are restricting the use of chemical rodenticides. Moreover, used alone, rodenticides and other chemical tools generally are not sustainable as rodents develop resistance to these methods. The industry is increasingly adopting Integrated Pest Management (IPM) programs that include fertility management, such as SNES offers.
Broadening product portfolio expected to expand SNES addressable market
SNES’s growth strategy includes broadening its product portfolio. The company has a growing portfolio of effective and sustainable products for both professionals and consumers to help manage rodent populations by restricting fertility through nonlethal birth control methods. In turn, this is expected to expand its addressable market. In early 2024, SenesTech launched EvolveTM Soft Bait, which the company developed to offer customers a product with similar efficacy to ContraPest® in a format that is easier to deploy. Unlike the liquid ContraPest product, Evolve is a solid that has longer shelf life, is easier to distribute and deploy, and is cost-effective. Evolve is roughly the size and shape of a miniature sausage and is the first soft bait developed to control pest populations through fertility control. Its active ingredient is cottonseed oil, which decreases sperm production and ovarian follicle growth in rodents. SNES has also initiated pilot deployments with multiple U.S. cities.
E-commerce Growth: Amazon Direct Management
With a broadening product portfolio that is expected to appeal to the consumer, as well as the professional market segments, the company is focusing more efforts on the direct-to-consumer (DTC) and e-commerce channels. As a result, the company has refocused its efforts on online sales, including the SenesTech e-commerce portal and Amazon, as well as through big box retailers.
The target market is sizable. Industry estimates place the global rodenticides market at north of $5.5 billion and growing at an estimated CAGR of nearly 6%, putting it on track to reach nearly $8.7 billion by 2031.
With a new CEO in place, the company has launched multiple growth initiatives, including expanding its product line, redesigning the product packaging, emphasizing the DTC and online channels, including managing its Amazon store itself, and refreshing its proprietary e-commerce distribution, as well as increasing its focus on certain strategic large-scale opportunities and adding international markets opportunistically. Moreover, demand for control solutions from agricultural companies is generally expected to rise as rodent infestations cause damage to crops, and SNES is optimistic about its prospects in this sector.
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