Senomyx, Inc. uses proprietary taste science technologies to discover, develop, and commercialize novel flavor ingredients for the food, beverage, and ingredient supply industries. The Company discovers novel flavor ingredients and natural high intensity sweeteners. These enable food and beverage companies to produce “better-for-you” products. Established in 1998, Senomyx is based in San Diego, California. Senomyx went public with an Initial Public Offering (IPO) on June 22, 2004.
In addition, the Company develops savory flavors, bitter blockers, as well as cooling agents. Many of the world’s foremost food and beverage companies use Senomyx’s products.
Furthermore, Senomyx sells flavor ingredients within its Direct Sales Program under the Complimyx® brand name. The Company’s Complimyx ingredients sell directly to flavor companies to create specialized flavor systems for their clients in the food and beverage industries. The Complimyx portfolio includes select offerings from Senomyx’s Sweetmyx®, Savorymyx®, and Bittermyx® brands.
The Company has its Sweet Taste Program. The objective is to lessen sugar and other sweeteners without conceding taste. Benefits include less calories and potential cost savings. It also has its Savory/Umami Taste Program. The focus of this program is to decrease or replace added Monosodium Glutamate (MSG) in foods and beverages; and to create new savory flavor blends.
Additionally, Senomyx has its Bitter Blockers Program. The aim of this program is to decrease or block bitterness to improve the taste of foods and beverages. Another goal of this program is oral and Over-The-Counter (OTC) healthcare products. Moreover, the Company has its Cooling Taste Program. The aim of this program is to create cooling agents, which have advantages over presently available agents, including menthol.
Senomyx produces its flavor ingredients in accredited food manufacturing facilities utilizing the highest quality ingredients. These have met the strict requirements for Kosher and Halal certifications.
Regarding its Salt Taste Research/Program, the objective is to identify flavor ingredients, which permit a considerable reduction of sodium in foods and beverages. This is while maintaining the salty taste consumers like. Furthermore, Senomyx has identified numerous novel plant-derived sweeteners that are more potent than Rebaudioside A. The Company believes this is a major step toward developing a potential new natural sweetener.
In Q3 2016, Senomyz inked a three-year extension of its sweet taste program collaboration agreement with PepsiCo through September of 2019. The Company granted PepsiCo non-exclusive rights to Senomyx’s natural sweeteners and natural flavoring ingredients discovered, developed, and chosen under the collaboration for use in all non-alcoholic beverage categories. Senomyx’s flavor ingredients Sweetmyx S617 was initially commercialized by PepsiCo and made available to consumers during Q4 2015.
Senomyx had a very good first nine months of 2016. This was highlighted by robust commercial revenue growth. Increases from the Company’s royalty base collaborations and its direct sales to flavor houses propelled this growth.
Pertaining to results through three quarters, the Company’s total revenues through September 30, 2016, were $18.8 million versus $18.6 million for the same period the year prior. Commercial revenues rose to $6.9 million for the nine months ended September 30, 2016 from $5.2 million for the same period the year prior. This represents a 32 percent improvement. This was mainly due to higher royalties from Senomyx’s sweet taste boosting and bitter blocking ingredients, and higher direct sales of its flavor ingredients to flavor houses.