SAN DIEGO, Oct. 27, 2016 /PRNewswire/ -- Senomyx, Inc.
(NASDAQ: SNMX), a leading company using proprietary taste science
technologies to discover, develop, and commercialize novel flavor
ingredients for the food, beverage, and ingredient supply
industries, today reported financial results for the third quarter
ended September 30, 2016. Total
revenues for the third quarter 2016 were $6.0 million including $2.5 million in commercial revenues.
"Senomyx delivered important results in the third quarter to
meet key commercial revenue, business development and R&D
goals," stated John Poyhonen,
President and Chief Executive Officer of the Company. On
September 30th, Senomyx
announced a three-year extension of its Natural Sweet Program with
PepsiCo, granting non-exclusive rights to natural sweeteners and
natural flavor ingredients discovered, developed and selected under
the agreement for use in all non-alcoholic beverage product
categories.
"Pursuing new collaborative relationships for our Natural Sweet
Taste Program that maximize the commercial potential of the program
remains a top priority for the Company. Potential partners
continue to express significant interest in our Sweet Taste Program
to support their goal of reducing calories while maintaining great
taste. We have built a strong pipeline of interested third parties
and we remain confident in our ability to deliver on new business
development opportunities in the future," Poyhonen stated.
"On the research and development front, we continue to make
progress in our natural high intensity, zero calorie sweetener
discovery program. Our R&D team is currently focused on
advancing our lead natural sweetener into the development phase.
This novel sweetener from a plant source has demonstrated greater
potency and a better taste profile than rebaudioside-A (the key
sweetener in Stevia) in sensory evaluations. We have
initiated preliminary safety studies and are continuing our efforts
to determine the commercial feasibility of potential fermentation
scale-up routes. While the discovery and development timeline
is currently uncertain, we are enthusiastic about the potential of
this product candidate."
"In addition, we continue to pursue new products to expand the
non-alcoholic beverage market opportunity. We have advanced our
next generation sweet taste booster, Sweetmyx®
FS22, into the final development stage activities based on the
clean results from our initial safety studies with a goal of
submitting our application for US regulatory approval in the second
half of 2017," Poyhonen concluded.
"Senomyx's direct sales program has continued to show good
progress since our last quarterly update, as the adoption of our
Complimyx® flavor ingredient offerings by our
flavor house customers continues to gain momentum," stated
Sharon Wicker, Senior Vice President
and Chief Commercial Development Officer. "Our win count has
increased to 13 wins across 10 different customers.
Additionally, we are very encouraged by the volume increases from
our existing customers, driven by repeat orders, allowing us to
grow our direct sales base business," Wicker concluded.
On October 25, 2016, PepsiCo
informed Senomyx that it will not be proceeding with a national
launch of the reformulated version of Mug Root Beer®
containing Sweetmyx S617. However, PepsiCo will
continue to sell the reformulated version of Manzanita
Sol® containing Sweetmyx S617 throughout
the United States.
Financial Results:
Commercial revenues increased to $6.9
million for the nine months ended September 30, 2016 from $5.2 for the same period in 2015. This
improvement primarily resulted from higher royalties from our sweet
taste boosting and bitter blocking ingredients and higher direct
sales of our flavor ingredients to flavor houses. These
increases were partially offset by a $1.3
million reduction in one-time commercial milestone revenues
compared to 2015. Commercial revenues were $2.5 million in the third quarter 2016 compared
to $3.0 million for the same period
in 2015. The decrease is due to a $1.5
million one-time milestone earned in the third quarter of
2015 which was offset by growth in both royalty and direct sales
revenues.
Development revenues were $11.9
million for the nine months ended September 30, 2016 and $13.4 million in the same period in 2015. The
$1.5 million decrease was primarily
attributable to lower revenue from our Sweet Taste Program
collaboration with Firmenich. The research funding period
under this collaboration came to its contractual conclusion in
July 2016.
Research, development and patent expenses decreased to
$16.2 million in the nine months
ended September 30, 2016 from
$18.3 million in the same period
2015. The decrease was primarily attributable to lower
personnel-related expenses. Selling, general and
administrative expenses decreased to $8.9
million in the nine months ended September 30, 2016 from $9.6 million in the same period 2015. Included in
these R&D and S,G&A expenses were $3.4 million of non-cash, stock-based
expenses.
The net loss for the nine months ended September 30, 2016 improved to $7.0 million compared to $9.7 million for the nine months ended
September 30, 2015.
Financial Review and Outlook:
"Consistent with the first two quarters this year, Senomyx
outperformed its financial guidance for the third quarter. We beat
our net results guidance by over $600,000 driven by higher than anticipated
commercial revenues and managing expenses to the low end of our
internal target. Looking forward, we will continue to provide only
quarterly guidance due to limited control over the timing of both
commercial revenue growth and business development activities,"
Rogers concluded.
For the fourth quarter of 2016, the Company expects:
- Revenue to be at least $4.2
million, of which at least $2.3
million are commercial revenues; and
- Net loss not to exceed $4.5
million or $0.10 per
share.
Regarding the Company's cash position, Senomyx ended the quarter
with no debt and $15.7 million in
cash. In addition, the Company is currently scheduled to
receive $19.1 million in committed
development funding payments of which $2.6
million will be received in the fourth quarter of 2016.
Conference Call:
Senomyx will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) Thursday, October 27, 2016 to discuss these
financial results and provide an update on the Company. To
participate in the live conference call, U.S. residents should dial
(844) 825-0514, and international callers should dial (315)
625-6892, at least 10 minutes prior to the call start time. The
conference ID for this call is 88731344.
To access the live Internet broadcast or a subsequent archived
recording, please log onto the Investor Relations section of
Senomyx's website at http://investor.senomyx.com.
About Senomyx, Inc. (www.senomyx.com)
Senomyx discovers novel flavor ingredients and natural high
intensity sweeteners that allow food and beverage companies to
create better-for-you products. Under its direct sales
program, Senomyx sells its Complimyx® brand
flavor ingredients, Sweetmyx®,
Savorymyx®, and Bittermyx®, to
flavor companies for use in a wide variety of foods and
beverages. In addition, Senomyx has partnerships with leading
global food, beverage, and ingredient supply companies, which are
currently marketing products that contain Senomyx's flavor
ingredients. For more information, please visit
www.senomyx.com.
Forward-Looking Statements:
Statements contained in this press release regarding matters
that are not historical facts are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Because such statements are subject to risks and
uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Such
statements include, but are not limited to, statements regarding
new collaboration agreements and the anticipated funding we may
receive, whether the research under our natural sweet taste
research program will be successful and lead to the
commercialization of any new natural flavor ingredients or
sweeteners and the anticipated timing and scope of commercial
launch of products containing our flavor ingredients, whether by
our collaborators or through our direct sales program. Risks that
contribute to the uncertain nature of the forward-looking
statements include: large companies such as PepsiCo and Firmenich
are typically conservative when implementing changes to their
branded products, and may not begin or expand their use of our
flavor ingredients when expected or at all; we are substantially
dependent on our current and any future product discovery and
development collaborators to develop and commercialize any flavor
ingredients we may discover; we are dependent on our current and
any future product discovery and development collaborators for our
research and development funding; we have limited experience in
manufacturing, marketing, or selling flavor ingredients on a
commercial scale and may not successfully grow our direct sales
program; commercial launches of new or reformulated food, beverage
and ingredient products incorporating our flavor ingredients may
not occur when expected or at all; the commercial utility for a
novel flavor ingredient that we develop may ultimately be more
limited than we expected; the cost to manufacture and/or formulate
any of our flavor ingredients into packaged food and beverage
products may be higher than anticipated, which could discourage
market entry and acceptance; development activities for newer
flavor ingredients may not demonstrate an acceptable safety profile
or meet other commercialization criteria; no assurance can be given
that we will be successful in developing and bringing to market
novel natural flavor ingredients or sweeteners; and we may face
challenges in developing manufacturing pathways to supply novel
natural flavor ingredients or sweeteners at a competitive cost.
These and other risks and uncertainties are described more fully in
our most recently filed SEC documents, including our most recent
Quarterly Report on Form 10-Q and Annual Report on Form 10-K, under
the headings "Risks Related to Our Business" and "Risks Related to
Our Industry." All forward-looking statements contained in this
press release speak only as of the date on which they were made. We
undertake no obligation to update such statements to reflect events
that occur or circumstances that exist after the date on which they
were made.
(Financial Information to Follow)
Contact:
|
Tony
Rogers
Senior Vice President
&
Chief Financial
Officer
|
|
|
Senomyx,
Inc.
|
|
|
858-646-8304
|
|
|
tony.rogers@senomyx.com
|
|
|
Selected Financial
Information
|
Condensed
Statements of Operations
|
(in thousands,
except for per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Development
revenues
|
|
$
|
3,472
|
|
$
|
4,432
|
|
$
|
11,912
|
|
$
|
13,375
|
|
Commercial
revenues
|
|
2,548
|
|
2,961
|
|
6,925
|
|
5,237
|
|
Total
revenues
|
|
6,020
|
|
7,393
|
|
18,837
|
|
18,612
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of commercial revenues
|
|
316
|
|
179
|
|
832
|
|
430
|
|
Research, development
and patents (including $484, $568, $1,481 and $1,637, respectively,
of non-cash stock-based compensation)
|
|
5,240
|
|
6,162
|
|
16,159
|
|
18,311
|
|
Selling, general and
administrative (including $608, $751, $1,909 and $2,294,
respectively, of non-cash stock-based compensation)
|
|
2,945
|
|
3,466
|
|
8,919
|
|
9,599
|
|
Total operating
expenses
|
|
8,501
|
|
9,807
|
|
25,910
|
|
28,340
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(2,481)
|
|
(2,414)
|
|
(7,073)
|
|
(9,728)
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
20
|
|
9
|
|
57
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(2,461)
|
|
$
|
(2,405)
|
|
$
|
(7,016)
|
|
$
|
(9,702)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
|
$
|
(0.05)
|
|
$
|
(0.05)
|
|
$
|
(0.16)
|
|
$
|
(0.22)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in computing basic and diluted net loss per
share
|
|
44,819
|
|
44,070
|
|
44,726
|
|
43,798
|
|
Condensed Balance
Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
December 31,
2015
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and investments available-for-sale
|
|
$
|
15,726
|
|
$
|
22,954
|
|
Other current
assets
|
|
7,521
|
|
6,287
|
|
Property and
equipment, net
|
|
2,876
|
|
3,334
|
|
Total
assets
|
|
$
|
26,123
|
|
$
|
32,575
|
|
|
|
|
|
|
|
Accounts payable,
accrued expenses and other current liabilities
|
|
$
|
5,125
|
|
$
|
5,303
|
|
Deferred
revenues
|
|
190
|
|
3,511
|
|
Deferred
rent
|
|
2,031
|
|
2,445
|
|
Leasehold incentive
obligation
|
|
1,627
|
|
1,792
|
|
Stockholders'
equity
|
|
17,150
|
|
19,524
|
|
Total liabilities and
stockholders' equity
|
|
$
|
26,123
|
|
$
|
32,575
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/senomyx-announces-third-quarter-2016-financial-results-300352973.html
SOURCE Senomyx, Inc.