By midday, shares had added 25.2% to $11.78.
San Diego-based Senomyx, which develops food and beverage flavorings, said its Sweetmyx ingredient had been determined to be Generally Recognized as Safe (GRAS) by U.S. regulatory Food and Drug Aministration (FDA).
Sweetmyx is a modifying flavor which maintains sweetness in foods and beverages in which the sugar content has been reduced. The ingredient will have several practical applications such as the inclusion in low- or no-sugar beverages such as Pepsi Max (PEP).
"The new Sweetmyx flavor ingredient will enable the creation of lower-calorie beverages and foods that have reduced sweeteners without sacrificing taste," said Senomyx CEO John Poyhonen in a statement.
"We are particularly excited about the versatility of Sweetmyx since it allows for the reduction of either sucrose or fructose in products. Senomyx is fully engaged with our partners as they evaluate potential product opportunities."
Senomyx currently has partnerships with PepsiCo and Firmenich to pursue commercialization of the flavor ingredient. The former has exclusive rights to use the flavor worldwide in all non-alcohol beverages. Firmenich has lifetime rights to commercialize the flavor for food product categories and alcoholic beverages with exclusivity until March 2018.
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TheStreet Ratings team rates SENOMYX INC as a Sell with a ratings score of D-. The team has this to say about their recommendation: