Senomyx Announces Corporate Update and Third Quarter 2012 Financial Results

09 Nov 2012

Senomyx, Inc today provided a corporate update and reported financial results for the third quarter and announced initial market launch of a retail product that incorporates Bitter Blocker.

09 Nov 2012 --- Senomyx, Inc today provided a corporate update and reported financial results for the third quarter ended September 30, 2012.The Company ended the third quarter 2012 with $44.7 million in cash and highly liquid investments.

During the quarter Senomyx earned $1.3 million in development milestones. Ongoing royalty payments from collaborators. $16.0 million in research and development funding commitments from current collaborators. $23.7 million in potential milestone payments under current collaborations. $21.7 million related to extension options under current collaborations

“We are announcing today that a Senomyx partner has begun its initial market launch of a retail product that incorporates our S6821 Bitter Blocker. This is the first time a Senomyx Bitter Blocker has been used in a consumer product,” said Kent Snyder, Chief Executive Officer of the Company. “Marketing activities are underway in a country in Southeast Asia and we expect our partner to expand to other regions and products. With this launch, four flavor ingredients discovered and developed by Senomyx – our S336 Savory Flavor; S2383 and S6973 from our Sweet Taste Program, and our S6821 Bitter Blocker – are now being commercialized by our partners.”

“As announced in October, we are also very pleased to receive new regulatory approvals for Senomyx flavor ingredients in the U.S., Europe, and elsewhere,” Snyder stated. “These approvals are significant validations of the Company’s scientific and regulatory accomplishments, as well as the safety of our proprietary ingredients and importantly, they open new market opportunities.”

"Our new S9632 flavor ingredient can be used to improve the taste of products in which the sucrose has been reduced. This presents a solution for manufacturers that are trying to respond to the rising consumer focus on health and wellness by creating new lower-calorie offerings that retain the taste consumers enjoy,” Snyder noted.

During the third quarter of 2012 Senomyx initiated preliminary development activities intended to support regulatory filings for S617, a unique new flavor ingredient intended to be used to restore the desired taste profile of products in which either high fructose corn syrup (HFCS) or sucrose has been reduced. Initial safety studies have been completed successfully and further activities are ongoing. Taste tests have demonstrated that S617 allows a very meaningful reduction of HFCS and sucrose in product prototypes while maintaining the desired sweet taste. Evaluations of S617 in a variety of products of interest are underway.

Senomyx’s S6973 can be used to restore the desired taste profile of foods and selected beverages in which sucrose has been reduced. Products applicable for S6973 usage include virtually all food categories and selected beverages, including dairy beverages, and ready-to-drink coffee and tea. Recent market launches of retail products that incorporate S6973 have occurred in the U.S., Latin America, Asia, and South Africa. These products span a variety of categories including ready-to-drink and powdered beverages, dairy products, and baked goods. Initial products launched with S6973 are showing strong performance based on re-order patterns, and additional launches of products that utilize S6973 are expected during the year.