Senomyx Announces Corporate Update and Third Quarter 2010 Results

"Senomyx had major recent accomplishments with our Bitter Blocker and Sweet Taste programs, opening up new opportunities for future commercialization and resulting in a strengthened balance sheet," stated Kent Snyder, Chief Executive Officer of the Company.

Nov 5 2010 --- Senomyx, Inc., a company focused on using proprietary taste receptor-based technologies to discover novel flavor ingredients for the food, beverage, and ingredient supply industries, provided a corporate update and reported financial results for the third quarter ended September 30, 2010. Revenues were $5.8 million for the third quarter of 2010, compared to $4.2 million for the third quarter of 2009, an increase of 40%. Revenues were $19.2 million for the nine months ended September 30, 2010, compared to $10.6 million for the nine months ended September 30, 2009, an increase of 80%. As of September 30, 2010, the Company had cash, cash equivalents, and short term investments of approximately $75.5 million.

"Senomyx had major recent accomplishments with our Bitter Blocker and Sweet Taste programs, opening up new opportunities for future commercialization and resulting in a strengthened balance sheet," stated Kent Snyder, Chief Executive Officer of the Company.

"We are proud to announce the receipt of GRAS regulatory determinations for two Senomyx bitter blockers, S6821 and S7958," Snyder said. "We believe the new approvals represent additional confirmation of Senomyx's discovery, development, and regulatory experience. These are the first Senomyx bitter blockers to go through the regulatory process, and we have been granted GRAS status for all of the uses and use levels requested. In conjunction with the GRAS designations, Senomyx will receive a $500,000 milestone payment from a collaborative partner."

The GRAS determinations were made by the Flavor and Extract Manufacturers Association (FEMA) under the provisions of the Federal Food, Drug and Cosmetic Act administered by the United States Food and Drug Administration (FDA). The GRAS status allows usage of the bitter blockers for a variety of product categories in the U.S. and numerous other countries. S6821 has demonstrated activity against bitter tasting foods and beverages that include soy and whey proteins, menthol, caffeine, cocoa, and Rebaudioside A (stevia). S7958, a related bitter blocker with similar functionality, has alternative desirable physical properties that may be useful for these or other product applications.

Regarding Senomyx's Sweet Taste program, in late October the Company expanded its collaboration with Firmenich SA for S6973, a novel sucrose enhancer. In addition to its previous rights related to commercial development of S6973 for virtually all food product categories and select powdered beverages, Firmenich has been granted an exclusive worldwide license to commercialize S6973 for use in instant and ready-to-drink milk, tea, and coffee beverages. Under the amended agreement, Senomyx will receive an additional license fee, incremental milestone payments and minimum annual royalties, as well as royalties on sales of S6973 for use in the additional product categories.

"Firmenich has made notable progress in their pre-commercialization activities with S6973 for food categories," Snyder stated. "Extending our partnership to include the new beverage categories increases the potential value of S6973. We believe that Firmenich's expertise with S6973 provides the best opportunity to accelerate commercialization and maximize commercial revenue for this unique sucrose enhancer.

"Senomyx established a new collaboration with PepsiCo for our Sweet Taste Program in August," Snyder noted. "We are looking forward to working with PepsiCo, an innovative company committed to reducing added sugar in key global beverage brands."

Senomyx's collaboration with PepsiCo is focused on the discovery, development, and commercialization of sweet enhancers and natural high-potency sweeteners for use in non-alcoholic beverage categories. Under the agreement, the Company received an upfront payment of $30 million from PepsiCo and is entitled to $32 million in committed research and development payments over the four-year research period.

In addition to other activities, Senomyx is diligent in seeking protection for its intellectual property. As of September 30, 2010, the Company is the owner or exclusive licensee of 216 issued patents and several hundred pending patent applications related to proprietary taste receptor technologies in the U.S., Europe, and elsewhere. Technologies covered in the Company's patents include taste receptor sequences and functions, screening assays, new flavor ingredients, and product applications.

Subsequent to the end of the third quarter, Mary Ann Gray, Ph.D., joined Senomyx's Board of Directors. Dr. Gray, who is President of Gray Strategic Advisors, LLC, has extensive experience as an equity research analyst, strategic advisor, scientist, and member of Boards of Directors of public companies. She holds a Ph.D. degree in pharmacology from the University of Vermont.