SenesTech Signs Wilco Distributing for Evolve™ and ContraPest® Distribution in Agriculture and Professional Rodent Pest Management Market
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The distribution agreement between SenesTech, Inc. and Wilco Distributors Inc. signifies a strategic move within the rodent pest control market. The partnership leverages SenesTech's innovative fertility control products, Evolve and ContraPest, which are alternatives to traditional poisons and traps. This comes at a time when regulatory pressures are increasing on the use of poisons, particularly in regions like California.
From a market perspective, the introduction of non-lethal pest management solutions could potentially shift industry standards, especially if these solutions prove to be effective and are adopted on a large scale. The pest control market is substantial, with over $1 billion in annual product sales. By targeting the 20% of the world's stored food supply impacted by rodent contamination and consumption, SenesTech is addressing a critical pain point for the agriculture industry and public health. The potential reduction in infrastructure damage, which currently stands at $27 billion in the U.S., could also be a compelling selling point for the adoption of these products.
However, the success of this agreement hinges on the market acceptance of fertility control as a viable pest management strategy. The initial multi-pallet stocking order by Wilco Distributors is a positive indicator, but the long-term impact will depend on customer satisfaction and the effectiveness of these products in real-world scenarios.
SenesTech's announcement of the distribution agreement could have a positive impact on their financial performance, depending on the market uptake of Evolve and ContraPest. The initial order and stock availability suggest that Wilco Distributors is confident in the market demand for these products. Given the size of the rodent pest control market and the cost associated with rodent damage, revenue potential for SenesTech is significant if the products gain traction.
Investors should monitor the sales growth post-distribution agreement and any changes in the regulatory landscape that could further favor non-lethal methods over traditional poisons. The long-term financial benefits for SenesTech will likely depend on their ability to scale production and maintain product efficacy, as well as the continued development of distribution channels.
It's important to note that while the partnership is a positive development, it is just one of many factors that can influence the company's stock performance. Market trends, competitive responses and broader economic conditions will also play important roles in determining the actual business impact of this agreement.
The introduction of fertility control methods in the rodent pest management industry represents an interesting shift towards more sustainable practices. The environmental and public health costs associated with traditional rodent control methods, such as poisons, are significant. By reducing reliance on these methods, SenesTech's approach could lead to lower environmental contamination and fewer non-target species casualties, which are often unintended consequences of poison use.
Moreover, the economic implications of such a shift could be profound. If fertility control methods can indeed reduce the 20% food supply loss and the $27 billion infrastructure damage caused by rodents, the savings could be redirected towards other economic activities, potentially leading to positive externalities. However, the adoption of these products will depend on their cost-effectiveness compared to traditional methods and the willingness of pest management professionals to integrate these solutions into their practices.
From a policy perspective, increased regulations on poisons can act as a market driver for alternative solutions. If regulators continue to push for more environmentally friendly pest control methods, companies like SenesTech could benefit from early-mover advantages in this emerging market segment.
Joel Fruendt, SenesTech's President and CEO, said: "Pest management professionals and homeowners are seeking alternatives to traditional lethal methods and poisons, as poisons are highly regulated and are tricky to use without contamination, and traps are expensive and time-consuming to maintain. There is strong evidence that the addition of fertility control to an integrated pest management program increases efficacy and reduces the reliance on poison. We are particularly pleased to be partnering with Wilco Distributors, as they have a clear commitment to finding innovative and responsible products for rodent pest management, and a strong position in the Agriculture space."
Blake Hazen, Wilco Distributors' President, added, "Our mission is to manufacture and distribute quality rodent control products, both for homeowners and professionals, providing effective and efficient solutions and excellent customer service. SenesTech's fertility control products fit extremely well into our portfolio, and we are excited to introduce our customers to Evolve and ContraPest. We already have products in stock and we are fulfilling initial orders."
ContraPest and Evolve address the fundamental issue of rodent overpopulation by focusing on the rapid reproduction of rats -- controlling the population by reducing or eliminating the fertility of rats, rather than trying to keep up with the growing numbers of an infestation with poisons alone. The active ingredients in ContraPest and Evolve effectively reduced fertility in rodents in numerous independent studies. They are highly palatable to rats, easy to deploy, and offer diverse placement in many different environments.
The rodent pest control market represents a significant market opportunity. Rodents are responsible for destroying nearly
About SenesTech
We are committed to improving the health of the world by humanely managing animal pest populations, applying our expertise in fertility control. We invented ContraPest, the only
For more information visit https://senestech.com/ and https://contrapeststore.com.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Poppe Enterprises' market presence and knowledge will mean immediate penetration of the Evolve product and our belief that the grain market represents a significant opportunity for Evolve. Forward-looking statements may describe future expectations, plans, results or strategies and are often, but not always, made through the use of words such as "believe," "may," "future," "plan," "will," "should," "expect," "anticipate," "eventually," "project," "estimate," "continuing," "intend" and similar words or phrases. You are cautioned that such statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, the impacts and implications of the COVID-19 pandemic, the successful commercialization of our products, market acceptance of our products, regulatory approval and regulation of our products and other factors and risks identified from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management's assumptions and estimates as of such date. Except as required by law, we do not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise.
CONTACT:
Investors:
Robert Blum, Lytham Partners, LLC,
602-889-9700, senestech@lythampartners.com
Company:
Tom Chesterman, Chief Financial Officer, SenesTech, Inc.,
928-779-4143 x825
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SOURCE SenesTech, Inc.
