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Senomyx Reports 2010 Financials, Progress in Projects
Posted: March 3, 2011
Senomyx, Inc. (San Diego) has announced a corporate update and reported financial results for the fourth quarter and year ended Dec. 31, 2010. Revenues were $28.7 million for the full year 2010, an 85% increase compared to 2009, and revenues were $9.5 million for the fourth quarter of 2010, compared to $4.9 million for the fourth quarter of 2009, an increase of 95%. The increases in revenues for the fourth quarter and the year were primarily due to the recognition of license fees and R&D funding revenue related to the company's August 2009 Sweet Program collaboration with Firmenich and its August 2010 collaboration with PepsiCo. License fees and R&D funding related to these collaborations contributed $7.5 million and $18.3 million for the three- and twelve-month periods ending Dec. 31, 2010, respectively. Also contributing to the annual increase was a total of $3.8 million in non-recurring milestone payments and cost reimbursements from collaborators.
Research and development expenses, including stock-based compensation expense, were $6.6 million for the fourth quarter of 2010, compared to $5.8 million for the fourth quarter of 2009, an increase of 14%. The increase was primarily due to increased costs for contracted development activities related to regulatory submissions, expenditures for compound acquisition and related high-throughput screening activities, and personnel-related expenses during the fourth quarter.
"2010 was an outstanding year for Senomyx, highlighted by numerous business development achievements, an improved balance sheet, valuable progress with our flavor and flavor modulation programs, and increased commercialization efforts by three of our partners," stated Kent Snyder, the company’s CEO.
"Our collaboration with PepsiCo in August provided a $30 million upfront payment to Senomyx and a committed source of R&D funding through August 2014. A notable aspect of both this collaboration and a recently expanded complementary agreement with Firmenich is financial support for a new focus on the discovery and development of natural flavor enhancers for the Sweet Taste Program.
"Another business development achievement in 2010 was the expansion of our commercialization agreement with Firmenich regarding our S6973 sucrose enhancer to include selected beverage applications in addition to virtually all food product categories," Snyder stated. "Importantly, Firmenich has demonstrated that use of S6973 allows sucrose to be reduced in products by up to 50%, yet the sweet taste desired by consumers is maintained. In addition, Firmenich has demonstrated that S6973 can be produced in commercial quantities, a significant consideration as they prepare for commercialization in 2011.