SENOMYX ANNOUNCES CORPORATE UPDATE AND FIRST QUARTER 2014 FINANCIAL RESULTS

 SENOMYX ANNOUNCES CORPORATE UPDATE AND FIRST QUARTER 2014 FINANCIAL RESULTS

Recent Highlights Include:

- Established new collaborative agreement with PepsiCo, Inc. to identify new
salt flavor modifiers

- Expanded the Senomyx direct sales portfolio, which now includes four
Complimyx® brand flavor offerings

PR Newswire

SAN DIEGO, May 1, 2014

SAN DIEGO, May 1, 2014 /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 first quarter
2014. The Company ended the first quarter with $31.6 million in cash and
highly liquid investments.

"We are very pleased with the progress Senomyx has made thus far in 2014,"
said John Poyhonen, President and Chief Executive Officer of the Company.
"During the first four months of the year, we have established a new research
agreement for our Salt Taste Program, added two new flavor offerings to our
direct sales portfolio, and received regulatory authorization for the
commercialization of Sweetmyx™ S617 in the United States and certain other
markets."

"We are excited about Senomyx's direct sales program, which is gaining
momentum with further evaluations of our ingredients by flavor companies, as
well as the addition of new offerings," stated Sharon Wicker, Senior Vice
President and Chief Commercial Development Officer. "Commercialization
activities were initiated recently with Sweetmyx SR69, also known as S6973,
which is used to maintain the sweet taste in reduced-sugar products. Sweetmyx
SR69 has been granted regulatory approvals in nearly every major country, and
it is the first sucrose modifier in our direct sales portfolio being promoted
for food usage. It is an excellent complement to Sweetmyx SR96 (S9632),
another effective sucrose modifier that we are currently marketing for use
with reduced-sugar beverages. In addition, we are receiving positive feedback
from evaluations of our Savorymyx™ UM80 savory flavor, which are underway in
the U.S. and elsewhere for use in a range of food and beverage products.

"Most recently, Senomyx has started introducing our Bittermyx™ BB68 bitter
blocker to potential flavor company customers. Bittermyx BB68 can be used as
part of a flavor system for foods and beverages to reduce the bitterness of
ingredients such as soy and whey proteins, menthol, caffeine, cocoa, and
stevia," Wicker explained. "Reducing the bitterness of high-protein products
is especially helpful for manufacturers of the more nutritionally based,
higher margin products."

Commercialization Updates:

Under the Company's direct sales program, rather than relying solely on
licensing collaborations for commercialization, Senomyx also sells certain of
its pure, also commonly referred to as "neat", ingredients to flavor companies
that can incorporate them into proprietary flavor systems for their
customers. Senomyx's internal commercial organization handles sales and
marketing, as well as supply chain management of third party manufacturers.
The direct sales program complements Senomyx's existing collaborations, which
are based on exclusive or co-exclusive commercialization licenses with
partners that pay royalties to the Company.

Senomyx Direct Sales Program:
Senomyx intends to leverage its proprietary taste science technologies to
become a leading commercial provider of novel flavor ingredients to the flavor
industry. The Company's Complimyx^®  Taste Modulation Ingredients brand
includes Senomyx's Sweetmyx sweet taste modifiers, Savorymyx savory flavors,
and Bittermyx bitter blockers.

Sweetmyx ingredients are sweet flavor modifiers used with other flavors to
restore the desired sweet taste of products in which sucrose or other
sweeteners have been reduced. Having multiple Sweetmyx offerings allows the
Company to address specific food or beverage product requirements and broadens
the potential applications for Senomyx's flavor ingredient portfolio.
Sweetmyx SR96 (S9632), a sucrose modifier, is currently being evaluated by
flavor companies for end-use in non-alcoholic beverages. Commercial-scale
quantities of SR96 have been received from the contract manufacturer. Senomyx
has begun commercialization activities with a second sucrose modifier,
Sweetmyx SR69 (S6973), with a focus on usage for food product categories.
Regulatory approvals for SR69 allow commercialization in virtually all
countries targeted for marketing. The Company expects to receive initial
commercial-scale quantities of SR69 by mid-year 2014.

Savorymyx flavors each provide a distinct new savory (umami) taste sensation
and can be combined with other ingredients to create unique new flavor
blends. They are applicable for a variety of products including sauces,
frozen foods, cooking aids, soups, and snack foods, and can be used to reduce
or replace added monosodium glutamate (MSG). Savorymyx UM80 (S807) is being
evaluated by flavor companies in the U.S. and elsewhere for use in numerous
food and beverage product categories. Senomyx has received commercial
inventory quantities of UM80 from a global manufacturer to support the
Company's marketing efforts.

Bittermyx bitter blockers are used to reduce the bitterness of ingredients
that impart a bitter taste or have a bitter lingering effect such as soy and
whey proteins, menthol, caffeine, cocoa, and Rebaudioside A (stevia). Senomyx
has initiated evaluations of Bittermyx BB68 (S6821) with flavor companies for
multiple potential usages. The Company expects that commercial quantities of
BB68 will become available during the third quarter of 2014.

Royalty-Based Collaborations:
Senomyx has collaborative agreements with several of the world's leading
packaged food, beverage, and ingredient companies. The Company has received
commercial revenues on sales of products incorporating its flavor ingredients
from Firmenich SA, Nestlé SA, and Ajinomoto Co., Inc.

  oS2383, a sucralose modifier, is being used primarily in beverage products
    marketed in North America, Latin America, Asia, and Europe.
  oS6973, a sucrose modifier, is being commercialized in a variety of
    categories including ready-to-drink and powdered beverages, dairy
    products, and baked goods in the Americas, Southeast Asia, Africa, and
    Australia.
  oS9632, a sucrose modifier, is being evaluated for use in foods, alcoholic
    beverages, and powdered beverages.
  oS336, a savory flavor, is being used in new and reformulated established
    products that were launched into the retail, industrial, and food service
    channels in selected countries within Africa, Asia, Latin America, and the
    Middle East. 
  oS6821, a bitter blocker, is currently being used in several products in a
    country in Southeast Asia.

Upcoming Commercialization:
Senomyx's newest Sweetmyx ingredient (S617) is a flavor with modifying
properties that is used as part of a flavor system to maintain the taste in a
wide variety of foods and beverages in which a sweetener has been reduced.
PepsiCo has exclusive rights to use the new flavor ingredient worldwide in
non-alcoholic beverages and Firmenich has lifetime rights to commercialize it
for food product categories and alcoholic beverages, with exclusive rights
until March 2018.

Discovery & Development Program Updates:

Sweet Taste Program: The primary goal of Senomyx's Sweet Taste Program is to
add to the Company's portfolio of new flavor ingredients that restore the
desired flavor profile to food and beverage products that have a significant
reduction in sweeteners. Senomyx is continuing efforts to discover novel
flavors with modifying properties that could create incremental value. The
Company has identified new modifiers of sucrose and fructose that possess
advantageous properties and may help expand the potential market for Senomyx's
sweet flavor modifiers portfolio. Evaluations and prioritization of new sweet
flavor modifiers that are candidates for development activities are ongoing.

The goal of the Natural Products component of Senomyx's Sweet Taste Program is
to discover and develop novel no- or low-calorie natural high intensity
sweeteners and natural sweet flavor modifiers. The Company has identified
taste proofs-of-concept for several natural sucrose modifiers and a natural
high intensity sweetener. Continuing activities include further expansion of
Senomyx's natural products library, high-throughput screening of these
plant-derived samples, and additional taste tests of samples of interest.

Cooling Taste Program: The goal of the Cooling Taste Program is to identify
novel cooling agents that have advantages over currently available agents such
as menthol. Definitive safety studies and other development activities in
preparation for future regulatory filings are underway for S2227, a new
cooling agent. Firmenich has exclusive commercialization rights for S2227.
Additional new cooling agents are being evaluated for potential future
commercialization.

Salt Taste Program: The goal of Senomyx's Salt Taste Program is to identify
flavor ingredients that allow a significant reduction of sodium in foods and
beverages yet maintain the salty taste desirable to consumers. This program
is an important focus for the Company's research activities. Senomyx has been
using analytical approaches to evaluate a large proprietary database of
proteins found in taste buds in order to find the specific protein or group of
proteins that function to detect salt in foods. This protein or proteins can
then serve as research targets to discover new salt flavor modifiers using
Senomyx's novel flavor technology.

Senomyx has identified a small group of proteins that meet certain criteria
for potentially being involved in salt taste, and more advanced tests are
underway to determine if they function to detect salt. Each of these
candidate targets is being further evaluated to see if it modulates salty
taste, which would provide a taste proof-of-concept.

In April, the Company announced that it had entered into a new research
agreement under which PepsiCo will provide research funding for the Salt Taste
Program for 2014 and has options to extend the research funding period.
PepsiCo will have non-exclusive rights to salt flavor modifiers discovered
during the research funding period. In addition, Senomyx will have the right
to supply these flavor ingredients directly to PepsiCo.

Intellectual Property: Senomyx continues to be diligent in seeking protection
for its intellectual property. As of March 31, 2014, the Company is the owner
or exclusive licensee of 426 issued patents and several hundred pending patent
applications in the U.S., Europe, and elsewhere related to proprietary taste
science technologies. 

Financial Review

At March 31, 2014, Senomyx held $31.6 million in cash, cash equivalents and
investments available-for-sale.

Total revenues were $8.2 million for the first quarter ended March 31, 2014,
compared to $7.5million for the first quarter ended March 31, 2013. The
increase primarily resulted from $1.3 million of development milestones earned
in the first quarter of 2014 related to the Sweet Taste Program. This increase
was partially offset by a decrease in development revenues related to
Senomyx's Cooling Taste Program, as research funding under the Company's
collaboration with Firmenich expired in June 2013.

Research, development and patents expenses, including stock-based compensation
expenses, were $7.0 million for the first quarter of 2014 compared to $7.4
million in the first quarter of 2013. The primary factor for the decrease from
2013 to 2014 was reduced outside services costs for safety studies to support
regulatory filings.

Selling, general and administrative expenses, including stock-based
compensation expenses, were $3.1million for the first quarter of 2014 and
$3.0 million for the first quarter of 2013. The increase was primarily due to
increased non-cash stock-based compensation expenses in 2014 resulting from a
higher fair value for stock options granted in 2014 based on the higher price
of Senomyx's common stock.

The net loss for the quarter ended March 31, 2014 was $0.05 per share,
compared to $0.07 per share for the quarter ended March 31, 2013.

Financial Outlook:

"Financial results for the first quarter of 2014 met or exceeded management
expectations and we are on-track to achieve our financial guidance," stated
Tony Rogers, Senior Vice President and Chief Financial Officer. 

For the full year 2014, Senomyx continues to expect:

  oTotal revenues of $32 million to $35 million, of which approximately $10
    million are commercial revenues
  oTotal operating expenses of $44 million to $46 million, of which
    approximately $6 million are non-cash, stock-based compensation expenses
  oNet loss of $10 million to $12 million
  oBasic and diluted net loss of $0.23 to $0.28 per share
  oYear-end cash, cash equivalents and investments available for sale balance
    greater than $25 million

"During the first quarter we recorded revenue associated with direct sales to
flavor companies. While these initial sales were modest, we continue to make
promising incremental progress and we expect that direct sales will be a key
driver of commercial revenue growth in the future. With $31.6 million in cash
and no debt, Senomyx remains well-positioned to achieve our discovery,
development and commercialization objectives, including our goal of
approximately $25 million in commercial revenues in 2015 and, importantly,
achieving profitability in 2015. Furthermore, we have no plans to raise money
through the issuance of equity or debt to fund the current scope of our
operations," Rogers concluded.

In addition to ending the first quarter 2014 with approximately $31.6 million
in cash and highly liquid investments, going forward the Company has committed
and potential sources of cash under current collaborations including the
following:

  o$15 million in committed development payments
  o$18 million in potential development payments related to extension options
  o$28 million in potential milestone payments

Conference Call:

Senomyxwill host a conference call at 11:00 a.m. Eastern Time (8:00 a.m.
Pacific Time) Thursday, May 1, 2014 to discuss these financial results and
provide an update on the Company. To participate in the live conference call,
U.S. residents should dial (888) 680-0892, and international callers should
dial (617) 213-4858, at least 10 minutes prior to the call start time. The
participant passcode for this conference call is 41841729.

Participants may pre-register for the call at any time, including up to and
after the call start time, at
https://www.theconferencingservice.com/prereg/key.process?key=PRBTJVQPH. 
Pre-registrants will be issued a pin number to use when dialing into the live
call, which will provide quick access to the conference.

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.

Senomyx Glossary & Complimyx Brand Names:

The following chart lists some of Senomyx's flavor ingredients. The Company's
Complimyx^® Taste Modulation Ingredients brand includes Senomyx's Sweetmyx
sweet flavor modifiers, Savorymyx savory flavors, and Bittermyx bitter
blockers.

Sweet Taste Program
Sucralose       Flavor with modifying properties used as part of a flavor
                system to restore the desired taste profile of products in
Modifier        which sucralose, a commonly used high-intensity sweetener, has
                been reduced
S2383
Sweetmyx        Flavor with modifying properties used as part of a flavor
                system to restore the desired taste profile of products in
SR69 (S6973)    which sucrose (table sugar) has been reduced
Sweetmyx        Flavor with modifying properties used as part of a flavor
SR96 (S9632)    system to restore the desired taste profile of products in
                which sucrose (table sugar) has been reduced
Sweetmyx

Flavor          Flavor with modifying properties used as part of a flavor
                system to restore the desired taste profile of products in
Ingredient      which sweeteners have been reduced

(S617)
Savory / Umami Taste Program
Savory Flavors
S336 &

additional      Flavor ingredients that are very versatile and can be used to
                create new savory blends
ingredients
Savorymyx
UM80 (S807)
Bitter Blockers Program
Bitter Blockers Flavors with modifying properties used as part of a flavor
                system for foods and beverages to reduce the bitterness of
Bittermyx       bitter tasting ingredients, e.g., soy & whey proteins,
                menthol, caffeine, cocoa, Rebaudioside A (stevia)
BB68 (S6821)
Cooling Taste Program
Cooling Agents  Flavor ingredient that is in development; intended to overcome
                the limitations of currently available agents, e.g., by having
S2227           greater potency, longer cooling duration, or lack of aroma



About Senomyx, Inc. (www.senomyx.com)

Senomyx is using proprietary taste science technologies to discover, develop,
and commercialize novel flavor ingredients. These include modifiers of Sweet
and Salt flavors as well as Savory Flavors, Bitter Blockers, and Cooling
Agents. The Company is also engaged in an effort to discover and develop
natural high-potency sweeteners. Under its direct sales program, Senomyx is
beginning to sell certain of its Complimyx^®  brand flavor ingredients,
Sweetmyx™, Savorymyx™ and Bittermyx™,  to flavor companies for re-sale to
their food and beverage company customers. In addition, Senomyx has
collaborative agreements with global food, beverage, and ingredient supply
companies, some of which are currently marketing products that contain
Senomyx's flavor ingredients. Senomyx's corporate socially responsible
activities are described on the Senomyx Cares blog at
http://www.senomyx-csrblog.com/. 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 our projected financial
results and anticipated financial condition for 2014 and 2015; the anticipated
availability of commercial quantities of our flavor ingredients, Sweetmyx SR69
and Bittermyx BB68; the anticipated timing and scope of commercial launch of
products containing Senomyx's flavor ingredients, whether by our collaborators
or through our direct sales program; the ongoing development activities and
future regulatory submissions for S2227; the progress and capabilities of
Senomyx's discovery and development programs generally, including without
limitation our ability to identify proteins primarily involved in the
perception of salt taste in humans. Risks that contribute to the uncertain
nature of the forward-looking statements include: the fact that 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 acceptance; we are dependent on third parties to manufacture commercial
quantities of all of our flavor ingredients and we may experience delays or
unanticipated costs for any such third party manufacturing; we also may
encounter unexpected difficulties using any of our flavor ingredients to
manufacture food or beverage products at commercial scale; the launch of any
new or reformulated commercial product requires the coordination of activities
by various business units and is subject to inherent uncertainty and potential
delay; Senomyx may be asked to complete additional studies to evaluate and/or
monitor the safety of new flavor ingredients in order to maintain applicable
regulatory approvals and/or obtain regulatory approvals outside of the United
States; large companies, such as PepsiCo, are typically conservative when
implementing changes to their branded products, and may not begin or expand
their use of Senomyx flavor ingredients when expected or at all; Senomyx has
little experience in manufacturing, marketing, or selling flavor ingredients
on a commercial scale and may not successfully implement its direct sales
program; Senomyx is dependent on its product discovery and development
collaborators for all of Senomyx's development revenues, and existing
collaborators may not elect to extend the research funding under those
collaborations as anticipated; development activities for newer flavor
ingredients, such as S2227, may not demonstrate an acceptable safety profile
or meet other commercialization criteria; Senomyx or its collaborators may be
unable to manufacture Senomyx flavor ingredients at commercial scale or at
anticipated costs; Senomyx's ability to compete in the flavor ingredients
market may decline if Senomyx does not adequately protect its proprietary
technologies; and Senomyx's discovery and development programs may not be
successful or result in the discovery of new flavor ingredients that are
commercially viable. These and other risks and uncertainties are described
more fully in Senomyx's most recently filed SEC documents, including its 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. Senomyx undertakes 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)

Contacts:
Financial                Investor Relations
Tony Rogers              Gwen Rosenberg

Senior Vice President &  Vice President, Investor Relations &

Chief Financial Officer  Corporate Communications
Senomyx, Inc.            Senomyx, Inc.
858-646-8304             858-646-8369
tony.rogers@senomyx.com  gwen.rosenberg@senomyx.com





Selected Financial Information
Condensed Statements of Operations
(in thousands, except for per share amounts)
                                                     Three Months
                                                     Ended March 31,
                                                     2014         2013
                                                     (unaudited)  (unaudited)
Revenues:
Development revenues                                 $  6,800     $  6,037
Commercial revenues                                  1,404        1,445
Total revenues                                       8,204        7,482
Operating expenses:
 Cost of commercial revenues                      101          101
Research, development and patents (including $622
and $390, respectively, of non-cash stock-based      7,017        7,380
compensation)
Selling, general and administrative (including $761
and $534, respectively, of non-cash stock-based      3,102        3,020
compensation)
Total operating expenses                             10,220       10,501
Loss from operations                                 (2,016)      (3,019)
Other income                                         8            11
Net loss                                             $  (2,008)   $  (3,008)
Basic and diluted net loss per share                 $  (0.05)    $  (0.07)
Weighted average shares used in computing basic and  41,467       40,459
diluted net loss per share





Condensed Balance Sheets
(in thousands)
                                                    March 31,    December 31,
                                                    2014         2013
                                                    (unaudited)
Cash, cash equivalents and investments              $   31,568   $   32,962
available-for-sale
Other current assets                                4,426        2,999
Property and equipment, net                         5,214        5,653
Total assets                                        $   41,208   $   41,614
Accounts payable, accrued expenses and other        $   3,986    $   7,119
current liabilities
Deferred revenues                                   9,385        10,553
Deferred rent                                       1,087        1,138
Leasehold incentive obligation                      2,879        3,126
Stockholders' equity                                23,871       19,678
Total liabilities and stockholders' equity          $   41,208   $   41,614





SOURCE Senomyx

Website: http://www.senomyx.com
 
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