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Bitter Blockers Program: The primary goals of this program are to reduce or block bitter taste and to improve the overall taste characteristics of foods, beverages, and ingredients. Two of Senomyx’s bitter blockers, S6821 and S7958, have received GRAS regulatory status. 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. Two Senomyx collaborators are currently evaluating S6821 for potential future commercialization.

Salt Taste Program: The goal of the Salt Taste Program is to identify flavor ingredients that allow a significant reduction of sodium in foods and beverages yet maintain the salty taste desirable to consumers. Senomyx has assembled a proprietary database of proteins found in taste buds and is exploring the role of a number of these proteins that may be involved in salt taste perception. Progress is being made in this high-priority program as Company researchers are using a new, more sensitive analytical system to discover specific proteins that could be viable candidates for the receptors or co-factors responsible for salt taste.

Cooling Flavors Program: The goal of the Cooling Flavors Program is to identify novel cooling flavors that do not have the limitations of currently available agents. Senomyx has made significant progress with the identification of several sample classes of new cooling flavors that demonstrate a taste proof-of-concept and display cooling properties that exceed those of commonly used agents with a ten-times greater potency. Firmenich has exclusive commercialization rights for new flavors developed under this program. The candidate cooling flavors are being evaluated in product prototypes for use in specific applications by Senomyx and Firmenich.

Financial Review:

Revenues were $7.0 million for the second quarter of 2011, compared to $5.7 million for the second quarter of 2010, an increase of 23%. Revenues were $15.7 million for the six months ended June 30, 2011, compared to $13.4 million for the six months ended June 30, 2010, an increase of 17%. The increases in revenues for the second quarter and the year-to-date were primarily due to the net increase in revenue associated with our Sweet Taste Program collaborations.

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