SenesTech (NASDAQ:SNES) shares are back on the rise on renewed optimism regarding its fertility control product ContraPest. This morning, the company announced that the California Department of Pesticide Regulation (CDPR) has approved ContraPest for sale and use in California under registration #91601-1-AA, sending shares soaring over 10% in Monday’s trading session. SenesTech shares have skyrocketed over nearly 35% in the past two trading days.
SenesTech CEO Loretta P. Mayer commented, “California is the fifth largest economy in the world and one of the top three state markets for pest control nationally, which is immediately attractive for any developer of innovative pest management solutions. In addition, California consistently leads the way with respect to innovative and environmentally sensitive policies, and California consumers demand products which are effective, are as safe as possible, are ethical, and pose the least burden on the planet. This makes California a particularly important market for ContraPest, which was designed with the same principles.”
Just recently, Roth Capital Gerry Sweeney reiterated a Buy rating on SNES shares, with a $3.75 price target, after the company distributed a press release highlighting key regulatory efforts to expand the label of ContraPest, update product delivery for field use and expand its rodent control use.
Sweeney wrote, “While there is little doubt the company has faced a steep learning curve in its ContraPest commercialization efforts; the data shows its effectiveness in rodent control. Recent distribution agreements, regulatory approvals (CA) and regulatory initiatives (below) are, in our opinion, efforts to not only broaden customer use, but highlight to the market and potential partners the broadest addressable market for its products.”
“We believe recent announcements are a two pronged strategy for SNES. Foremost, the efforts are part of its commercialization efforts to drive sales– make ContraPest available to the widest potential market while creating ease of application. Secondly, with a limited balance sheet, we believe the efforts also highlight to investors and potential partners the market opportunities which the product can bring,” the analyst added.