SAN DIEGO, July 27, 2017 /PRNewswire/ -- Senomyx, Inc.
(NASDAQ: SNMX), a leading company using proprietary taste science
technologies to discover, develop, and commercialize novel flavor
ingredients and natural high intensity sweeteners for the food,
beverage, and ingredient supply industries, today reported
financial results for the second quarter ended June 30, 2017.
"Senomyx had a good first half of 2017, highlighted by
significant direct sales growth and continued progress advancing
siratose, our natural high intensity sweetener," stated
John Poyhonen, President and Chief
Executive Officer of the Company. "In the second quarter, we
exceeded our financial guidance and ended the quarter
well-positioned to meet our key annual commercial revenue, business
development and R&D goals."
During the second quarter, following a thorough evaluation
process, the Company engaged an advisor to pursue strategic options
related to certain flavor ingredient assets. "The Board of
Directors routinely considers a broad range of strategic
alternatives and opportunities with the goal of maximizing
stockholder value," stated Kent
Snyder, Chairman of the Board of Directors of Senomyx. "We
believe that engaging an advisor along with our other strategic
initiatives puts Senomyx in the best position to maximize value for
all stockholders."
"Securing non-dilutive funding to support the development of
siratose, future natural product discoveries and the growth of our
direct sales is a priority for the Company. We believe the steps
taken by the Board combined with new collaboration funding and
direct sales revenue growth will be critical factors in supporting
our funding needs," Poyhonen added.
Operational Results:
In March, the Company introduced its new natural high intensity
sweetener under the common or usual name of siratose and made
important disclosures related to the plant source, the expected
manufacturing process and anticipated development timeline for
siratose. The siratose disclosures have facilitated the Company's
pursuit of new collaborative relationships for its natural sweet
taste program that maximize the commercial potential and provide
its collaborators with access to siratose and future natural
product discoveries. "We continue to increase both our pipeline of
collaboration candidates and, importantly, the number of term sheet
proposals under discussion. We remain confident in our ability to
begin adding collaborators to our syndicate during 2017," stated
Poyhonen.
"Direct sales of Senomyx's Complimyx® flavor
ingredient offerings grew during the first half of 2017 with
revenues increasing by over 114% compared to the same period of the
prior year," stated Sharon Wicker,
Senior Vice President and Chief Commercial Development Officer. "We
continue to earn new business with world-class flavor house
customers and their forecasts for future use of our flavor
ingredients are promising. During the second quarter, we achieved
the second highest direct sales revenues since inception of the
program, after achieving record levels in the first quarter. In
addition, our win count increased to 19 wins across 14 different
customers. We remain enthusiastic about the growth prospects for
our direct sales efforts going forward."
Financial Results:
Commercial revenues increased 24% to $2.8
million in the second quarter ended June 30, 2017. For the six months ended
June 30, 2017, commercial revenues
increased 25% to $5.5 million. These
improvements primarily resulted from higher direct sales of flavor
ingredients to flavor houses and higher royalties from sweet taste
boosting ingredients.
Development revenues decreased to $2.0
million in the second quarter and decreased to $3.9 million in the six months ended June 30, 2017, primarily due to the July 2016 contractual conclusion of the research
and development funding period under the sweet taste program
collaboration with Firmenich.
Research, development and patent expenses decreased $1.3 million to $4.2
million in the second quarter and decreased $2.3 million to $8.7
million in the six months ended June
30, 2017, primarily due to lower personnel-related expenses.
Selling, general and administrative expenses increased $0.2 million to $3.2
million in the second quarter and increased $0.3 million to $6.2
million in the six months ended June
30, 2017. Non-cash, stock-based compensation expenses
totaled $0.9 million and $1.7 million for the three and six months ended
June 30, 2017.
The net loss for the second quarter 2017 was $2.8 million or $0.06 per share. For the six months ended
June 30, 2017, the net loss was
$6.3 million or $0.13 per share.
Financial Outlook:
Senomyx ended the second quarter 2017 with no debt and
$11.2 million in cash, an increase of
$1.1 million during the second
quarter. In addition, the Company is scheduled to receive
$14.0 million in committed
development funding in the future.
For the third quarter of 2017, the Company expects:
- Revenues to be at least $4.7
million, of which at least $2.9
million are commercial revenues; and
- Net loss not to exceed $3.2
million or $0.07 per
share
Conference Call:
Senomyx will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) Thursday, July 27, 2017 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 45202383.
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, regarding our projected
financial results and anticipated financial condition in 2017,
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 flavor ingredients or natural high
intensity 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 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
high intensity sweeteners; and we may face challenges and delays in
developing manufacturing pathways to supply novel natural high
intensity sweeteners at a competitive cost and in obtaining
requisite regulatory approval. 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:
Dave Humphrey
Vice President, Finance
Senomyx, Inc.
858-646-8305
dave.humphrey@senomyx.com
Selected Financial
Information
|
Condensed
Statements of Operations
|
(in thousands,
except for per share amounts)
|
|
|
Three Months
Ended June
30,
|
|
Six Months
Ended June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Commercial
revenues
|
$
|
2,849
|
|
$
|
2,305
|
|
$
|
5,469
|
|
$
|
4,377
|
|
Development
revenues
|
2,021
|
|
4,262
|
|
3,867
|
|
8,440
|
|
Total
revenues
|
4,870
|
|
6,567
|
|
9,336
|
|
12,817
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of commercial revenues
|
306
|
|
296
|
|
727
|
|
516
|
|
Research, development
and patents (including $354, $495, $651 and $997, respectively, of
non-cash stock-based compensation)
|
4,232
|
|
5,487
|
|
8,659
|
|
10,919
|
|
Selling, general and
administrative (including $543, $653, $1,040 and $1,301,
respectively, of non-cash stock-based compensation)
|
3,173
|
|
2,938
|
|
6,239
|
|
5,974
|
|
Total operating
expenses
|
7,711
|
|
8,721
|
|
15,625
|
|
17,409
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(2,841)
|
|
(2,154)
|
|
(6,289)
|
|
(4,592)
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
13
|
|
18
|
|
25
|
|
37
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(2,828)
|
|
$
|
(2,136)
|
|
$
|
(6,264)
|
|
$
|
(4,555)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
|
(0.06)
|
|
$
|
(0.05)
|
|
$
|
(0.13)
|
|
$
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares used in computing basic and diluted net loss per
share
|
47,514
|
|
44,761
|
|
46,683
|
|
44,679
|
|
Condensed Balance
Sheets
|
(in
thousands)
|
|
|
|
June
30, 2017
|
|
December
31, 2016
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and investments available-for-sale
|
|
$
|
11,225
|
|
$
|
12,363
|
|
Other current
assets
|
|
5,465
|
|
8,670
|
|
Property and
equipment, net
|
|
2,771
|
|
2,731
|
|
Total
assets
|
|
$
|
19,461
|
|
$
|
23,764
|
|
|
|
|
|
|
|
Accounts payable,
accrued expenses and other current liabilities
|
|
$
|
4,243
|
|
$
|
5,504
|
|
Deferred
rent
|
|
1,603
|
|
1,886
|
|
Leasehold incentive
obligation
|
|
1,462
|
|
1,572
|
|
Stockholders'
equity
|
|
12,153
|
|
14,802
|
|
Total liabilities and
stockholders' equity
|
|
$
|
19,461
|
|
$
|
23,764
|
|
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SOURCE Senomyx, Inc.