SENOMYX ANNOUNCES CORPORATE UPDATE AND SECOND QUARTER 2012 FINANCIAL RESULTS
August 7, 2012--
Inc. (NASDAQ:SNMX), a company using proprietary taste science
technologies to discover novel flavor ingredients for the food,
beverage, and ingredient supply industries, today provided a...
August 7, 2012-- Senomyx, Inc. (NASDAQ:SNMX), a company using proprietary taste science technologies to discover novel flavor ingredients for the food, beverage, and ingredient supply industries, today provided a corporate update and reported financial results for the second quarter ended June 30, 2012. The Company ended the second quarter 2012 with $47.9 million in cash and highly liquid investments. “In a significant recent accomplishment, Senomyx has discovered S52617, also referred to as S617, a new sweet taste modifier intended to be applicable for the reduction of both high fructose corn syrup (HFCS) and sucrose in foods and beverages,” said Kent Snyder, Chief Executive Officer of the Company. “Taste tests demonstrated that S617 allows a very meaningful reduction of HFCS and sucrose in product prototypes while maintaining the desired sweet taste. This was achieved with very low concentrations, which could provide important cost-in-use benefits to food and beverage companies that incorporate S617 in their products. In light of these valuable attributes, we have agreed to work with PepsiCo to advance this new flavor ingredient into the preliminary development phase, which includes the initial safety studies and other activities necessary to support regulatory filings in the U.S. and elsewhere,” Snyder stated. “The new sweet taste modifier is Senomyx’s first flavor ingredient in development that exhibits the ability to reduce the amount of HFCS, a sweetener used widely in beverages and other products,” Snyder noted. “The utility of S617 with both HFCS and sucrose is significant since it will allow manufacturers that use these sweeteners to focus their internal efforts on a single sweet taste modifier, thereby potentially increasing efficiency and cost-effectiveness.” In a related announcement, Senomyx has reacquired the rights to S9632 for its use in non-alcoholic beverages from PepsiCo. S9632 is a new sucrose modifier intended to reduce sugar content by up to 50% in a variety of products. “The reacquisition provides Senomyx with a new opportunity to maximize the commercial potential and expand the total usage of S9632,” Snyder said. “The primary non-alcoholic beverage categories targeted for S9632 use are powdered and concentrated beverages, along with ready-to-drink and powdered forms of dairy, coffee and tea products. These markets are large and tend to be fragmented, and additional access to beverage manufacturers should allow us to potentially get a greater share of the value we created with S9632. We appreciate that PepsiCo has consented to this amendment to our collaborative agreement.”
Investors considering a purchase of Senomyx Inc stock, but cautious about paying the going market price of $5.11/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the October put at the $5 strike, which has a bid at the time of this writing of 85 cents.