Senomyx Revenues Rise 26% in Q1
28 Apr 2017 --- Senomyx, Inc., a leading company using proprietary taste science technologies to discover, develop, and commercialize novel flavor ingredients and natural high intensity sweeteners has reported that commercial revenues increased 26% and direct sales increased 250% over the first quarter of 2016.
"Senomyx is off to a good start in 2017," stated John Poyhonen, President and Chief Executive Officer of the Company. "We exceeded our financial guidance for the first quarter of 2017 and are well-positioned to meet key commercial revenue, business development and R&D goals. During the first quarter, we grew direct sales to well over twice that of our previous highest quarter, we advanced business development discussions on siratose, our lead natural high intensity sweetener, and we received regulatory authorization to commercialize a new cooling flavor ingredient."
In March, the Company introduced its new natural high intensity sweetener under the common or usual name of siratose and made important disclosures related to the plant source, the expected manufacturing process and anticipated development timeline for siratose. The siratose disclosures have facilitated the Company's pursuit of new non-exclusive collaborative relationships for its natural sweet taste program that maximize the commercial potential and provide its collaborators with access to siratose and future natural product discoveries. "We have built a pipeline of about 20 excellent collaboration candidates and we remain confident in our ability to begin adding collaborators to our syndicate during 2017," stated Poyhonen.
"On the development front, our newest cooling flavor ingredient, Coolmyx™ CL19, was determined Generally Recognized As Safe (GRAS) by the Expert Panel of the Flavor and Extract Manufacturers Association of the United States (FEMA) during the first quarter. The GRAS determination allows Senomyx to pursue commercialization in the U.S. and a number of other countries. Coolmyx CL19 provides a clean, long lasting cooling taste profile and we will initially pursue beverages, confectionary, and oral healthcare products as the target market. Third parties are currently evaluating this cooling flavor and we are considering a broad range of strategic options for commercialization," Poyhonen concluded.
"Direct sales of Senomyx's Complimyx flavor ingredient offerings grew to record levels during the first quarter with revenues increasing by over 250% compared to the same quarter of the prior year," stated Sharon Wicker, Senior Vice President and Chief Commercial Development Officer. "We continue to earn new business with world-class flavor house customers and their forecasts for future use of our flavor ingredients is promising. During the first quarter, we announced that we had filled a newly created position, senior director of sales, to lead our sales organization in the field and we have added an experienced flavor ingredient broker with a proven track record to represent Senomyx in Asia and Oceania. We remain enthusiastic about the positive impact we anticipate these steps will have on our direct sales efforts going forward."
Commercial revenues increased 26% to $2.6 million in the first quarter ended March 31, 2017. This improvement primarily resulted from higher direct sales of flavor ingredients to flavor houses and higher royalties from sweet taste boosting ingredients. These increases were partially offset by a $500,000 one-time commercial milestone earned in the first quarter of 2016 related to the cooling taste program.
Development revenues decreased to $1.8 million in the first quarter ended March 31, 2017. This decrease was primarily due to the July 2016 contractual conclusion of the research and development funding period under the sweet taste program collaboration with Firmenich.
Research, development and patent expenses decreased $1 million to $4.4 million for the first quarter ended March 31, 2017. The reduction in expenses is primarily due to lower personnel-related expenses partially offset by higher outsourced development activities associated with Sweetmyx® FS22, the Company's next generation sweet taste booster. Selling, general and administration expenses were consistent with prior year at $3.1 million for the first quarter ended March 31, 2017. Included in these first quarter 2017 R&D and SG&A expenses were approximately $800,000 in non-cash, stock-based compensation expenses.
The net loss for the first quarter 2017 was $3.4 million or $0.07 per share.
Senomyx ended the first quarter 2017 with no debt and $10.1 million in cash. Accounts payable decreased by $1.4 million during the first quarter. At the end of the first quarter, the Company had $5.5 million in accounts receivable, of which $5.0 million is anticipated to be received during the second quarter. In addition to these accounts receivable amounts, the Company is currently scheduled to receive $15.8 million in committed development funding in the future.
For the second quarter of 2017, the Company expects revenues to be at least $4.6 million, of which at least $2.7 million are commercial revenues; and a net loss not to exceed $3.3 million or $0.07 per share.
