Agreement in Principle Reached to Terminate Marketing Agreement with Triax
Aesthetics, LLC for Pyratine-6(TM) on Most Favorable Terms
NAPA, Calif., May 15 /PRNewswire-FirstCall/ -- Senetek PLC (OTC Bulletin Board: SNKTY), a Life Sciences company engaged in the development of technologies that target the science of healthy aging, today announced financial results for the quarter ended March 31, 2008 and an agreement in principle to terminate its marketing agreement with Triax Aesthetics, LLC ("Triax") for Pyratine-6(TM) on most favorable terms.
Revenue for the quarter ended March 31, 2008 was $441,000, compared with $25,308,000 reported in the first quarter of 2007. Revenues for the first quarter of 2007 included $24,750,000 recognized in conjunction with the previously announced grant of a paid up license for Kinetin and Zeatin to Valeant Pharmaceuticals Inc.
Net loss for the quarter ended March 31, 2008 totaled $1,757,000, a loss of $0.23 per share compared to a net income of $21,733,000 or $2.85 per share in the first quarter of 2007. Net loss for the quarter ended March 31, 2008 included $926,000 of sales and marketing fee expense to Triax. Net income for the quarter ended March 31, 2007 included the effect of the previously announced grant of a paid up license for Kinetin and Zeatin to Valeant Pharmaceuticals Inc. and $1,320,000 from settlement of claims against a professional services provider for past performance related matters.
The Company has reached an agreement in principle, subject to receipt of certain documentation and information, to terminate its marketing agreement with Triax for Pyratine-6(TM) on most favorable terms. These terms would include the return of $1,125,000 in cash from Triax and a service provider, return of all intellectual property, product inventory and promotional materials, access and ownership of all accounts opened, a non-competition agreement from Triax and certain related parties prohibiting them from selling any topical cosmetic non monograph products used for antiaging purpose and/or in connection with acne rosacea for a period of two years, along with rights to utilization of the "Triax Aesthetics" name in conjunction with the sales of existing packaged product inventory. The termination agreement is expected to be finalized shortly.
The Company will announce the date and time of a teleconference call for investors when the agreement to terminate its marketing agreement with Triax is finalized.
About Senetek PLC
Senetek PLC (OTC Bulletin Board: SNKTY) is a Life Sciences company engaged in the development of breakthrough technologies that target the science of healthy aging. The Company's extensive research collaborations have resulted in a strong pipeline of patented compounds and products with broad therapeutic applications and a leading presence in dermatology. Senetek collaborates with established specialty pharmaceutical companies in the final development and marketing of its proprietary products, most recently resulting in the development of the best-selling anti-aging product sold in the North American physician market. For more information, visit the company's website at http://www.senetekplc.com.
This news release contains statements that may be considered 'forward- looking statements' within the meaning of the Private Securities Litigation Reform Act. 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 2007. 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.
|SOURCE Senetek PLC|
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