By late afternoon, shares had taken off 5.4% to $10.56.
Trading volume of 1.2 million was nearly double its three-month daily average.
San Deiego-based Senomyx recorded a net loss of 8 cents a share, 2 cents wider than analysts surveyed by Thomson Reuters had anticipated.
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Revenue of $7.41 million was short expectations for $7.81 million, and 9.6% lower than a year earlier.
On Tuesday, shares soared after the company's Sweetmyx ingredient, a flavoring which maintains sweetness in reduced-sugar foods and beverages, was determined to be Generally Recognized as Safe (GRAS) by U.S. regulatory Food and Drug Administration (FDA). PepsiCo (PEP - Get Report) has exclusive rights to use the flavor worldwide in all non-alcohol beverages.
"Senomyx is starting 2014 well-positioned for commercial growth and continued achievements with our R&D and regulatory efforts," said CEO John Poyhonen in a statement.
For fiscal 2014, management expects revenue between $32 million and $35 million with a net loss of 23 cents to 28 cents a share.
Analysts forecast revenue of $35.45 million and a net loss of 15 cents a share.