Potential catalyst for accelerating sales of ContraPest, an environmentally responsible product that could benefit from ban on other rodenticides
We believe California legislation that was just signed on September 29, 2020, by Gov. Gavin Newsom could encourage the use of SenesTech, Inc. (NASDAQ:SNES) product, ContraPest. AB 1788 restricts the use of second generation rodenticides in order to minimize poisoning of non-target wildlife. Consistent with this goal, ContraPest is an environmentally responsible liquid bait that acts as a contraceptive to reduce rodent populations. AB1788 becomes effective on January 1, 2021.
Bill Essentially Is A Ban On SGARs
The bill as passed significantly restricts the use of second generation anticoagulant rodenticides (SGARs) and applies to any wildlife habitat area with few exceptions, including public and state or U.S. government-owned property.
In the field, it will be administered by pest management professionals (PMPs) unless the agency has qualified internal staff, as San Francisco, for one, has. SNES is working with the San Francisco Recreation and Parks Department to provide proof of concept about the effectiveness of ContraPest. Using ContraPest as part of an integrated pest management program resulted in a 65% reduction in rodent populations. Importantly, the 65% metric is incremental to the rodent population reduction achieved by conventional programs before including the use of ContraPest.
In addition to San Francisco, SenesTech is working with several municipalities both within the state of California and in other areas to demonstrate the efficacy of ContraPest. Overall, the impact of the ContraPest contraceptive has shown to be very good, with over 85% reductions in rat populations in several studies. Some (very modest) ContraPest revenue resulting from AB1788 could accrue in 2020 but we would expect a significant impact in 2021.
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