Senomyx SNMX Stock ResearchWebsite link: www.senomyx.com
*** Click here for all SNMX blog posts *** Recent Updates on SNMX: Blue font indicates premium content for Chimera Research Group subscribers Roth Capital presentation 3/15/11: click here for notes Needham presentation 4/5/11 1q2011 earnings 4/29/11 - click here for notes and PR link 2011 Proxy statement Click for notes and PDF of filing Deutsche Bank webcast 5/3/11: Click here for notes 2q2011 earnings 8/5/11 - click here for notes. Midwest Ideas webcast 8/31/11 - click here for notes 1/2012 Initiation of coverage article - click to read. 4/2012 Needham Healthcare conference - click for notes. 8/2012 Notes from Pepsi 2q2012 earnings - blog. |
Pepsico $PEP Collaboration
- Announced 8/2011. $30m upfront and $32m committed research and development funding thru 2014
- Artificial and Natural enhancers of sucrose, fructose, and high potency sweeteners
- Novel natural high potency sweeteners
Cadbury Adams (Kraft) $KFT Collaboration
- Announced 1/2011 for development and worldwide commercialization of novel flavor modulators for use in gum and medicated confectionery products
- Not specified which program(s) this is associated with. I would rank probability as 1) bitter; 2) sweet; 3) cool
S6973 Sucrose Enhancer
- Licensed to Firmenich for food and beverages
- Allows up to 50% reduction in sugar content
- 5/2012 at Citi: expect JECFA approval in 2012
S2383 Sucralose Enhancer
- Enhancer of sucralose, aka Splenda, allowing up to 75% reduction in foods
- First commercial sales recorded 1q2011, Firmenich is moving forward with additional customers (4q10 results)
- 4/2011: granted U.S. composition of matter Patent No. 7,928,111 on S2383 and analogs, expiration date not included in PR - click here for PR.
S6821 and S7958 Bitter Blockers
- Received GRAS status 10/2010
- Received "Favorable Opinion" from European Food Safety Authority, but cannot be commercialized until publication of "Union List", which has been repeatedly delayed
- 5/2011: granted US composition of matter patent on family of bitter blockers (including S6821 and S7958), expiring 1/17/2029 - Click here for PR. "In addition to foods, beverages, and pharmaceuticals, the patent covers use of Senomyx's bitter blockers to alleviate or eliminate bitter taste in food supplements, nutraceuticals, functional foods, over-the-counter medications, oral care, and other products. The patent also protects use of the bitter blockers in a variety of beverage formats such as ready-to-drink, concentrated, and instant formulations"
Notes: 4/5/2011 Needham conference
- Goal: to maximize revenue potential of ingredients over the long term
- Partnerships: identify program, product categories, and georgraphies in exchange for r&d funding, license fees, milestones, royalties on product sales. Collaborator does all sales and marketing
- Each taste has its own cell as part of taste bud with receptor at surface
- 800k compounds in potential flavor ingredient library; then optimize for potency, physical characerics
- GRAS status takes 18 months and $1m from selection of candidate
- Firmenich (private company w/ $3b in annual sales) partnership includes: 2383, 6793, and working towards new arifical and natural sweet enhancers
- Pepsi: new sweet enhancers both artificial and natural, as well as natural high potency sweeteners
- Lingering aftertasete of sucralose is thought to be concentration dependent
- 6973 has no taste on its own. first sales sometime later this yr
- new sucrose enhancers- eval'ing in product prototypes. possible selection in 2011
- fructose- impt for carbonated beverage. have taste POC- now optimization and taste tests with a number of potential enhancers
- natural high potency sweeteners- currently screening library
- bitter- S6821 is under evaluation by a couple partners- hope more to report at later pt in time
- Salt: exploring role of proteins from prop taste bud tissue database
- royalty can be % of net sales or based on volume of ingredient used. effective rate up to 4%
- Firmenich and SNMX est mkt for a new cooling ingredient at $1.2b
- royalties persist thru life of patent (short reg pathway- so estimate at 17 yrs)
- net loss 2011 $8-10m, cash ye2011 over $50m
- New cadbury deal- gum and medicated confectionaries
- nestle has a number of products they would like to sell in eu pending approved list
- Webcast cut off just as q&a session was starting unfortunately
Notes: 3/3/2011 4q2010 Results Conference Call
- Firmenich has exercised option in agreement for natural and artificial sweeteners/enhancers thru 7/28/2012
- 2 recent bitter blocker approval mean 8 total molecules have received GRAS status
- S6821 bitter blocker for soy, whey, menthol, caffeine, cocoa, Reb-A (Stevia)
- S7958 is a related compound, alternative physical properties, for use in the above and other products
- S6821 is under evaluation by MULTIPLE partners (this is a change in wording from "a partner" in previous calls)
- New sucrose enhancers- product prototypes being evaluated with several candidates, could lead to selection for development later in 2011
- Fructose enhancers- id'd several new hits in screening assays, optimization and taste tests of several are ongoing
- Renewed effort to identify natural sweeteners, high throughput (HTP) screening of expanded library
- Salt program- exploring role of proteins that are potential receptors or cofactors for salt taste perception
- Cool program- several sample classes with taste POC and improved cooling properties. Collaboration was extended 4q2010 for 2 more years with Firmenich. Now evaluating candidates in product prototypes
- Campbell- collaboration for salt taste enhancers for wet soups and savory beverages will end and all rights return to SNMX 3/31/2011 (SNMX had never disclosed that this deal was for salt program, but it was obvious). Campbell is shifting away from trying to further reduce sodium, working on better taste and product efforts. Termination has no effect on effort level at SNMX for this program
- Want to achieve progress in identifying salt receptor or enhancer with taste POC before new salt partnerships
- Nestle in 2010 expanded product line to include reformulations of existing products with SNMX savory enhancers to reduce MSG. Ongoing product launches in Asia, Latin America, Africa, and Middle East
- Still no publication or update on the EFSA list needed for European commercialization by Nestle
- Ajinomoto- recently achieved first savory enhancer sales in North America, earned milestone in 1q2011
- S2383 sucralose (Splenda) ehancer had first sales, more commerical quantity orders have occured in 1q2011, in discussions with other potential customers
- S6973 sucrose enhancer. Important factors include nutrition and health concerns, rising sugar prices, reduced sugar use leads also to reduced water and fuel use by manufacturers. 6973 has taste and functional attributes needed for wide acceptance, expect first sales in 2011
- Will continue trend of reduced net loss, expect $8-10m in 2011, greater than $50m cash on hand year-end 2011
- Expect $4m of commerical revenue in 2011, sweet program will drive growth for the next few years
- Will recognize $7.5m of Pepsi upfront and $5m of Firmenich upfront fees in 2011
- Question and answer session:
- Bitter program- partners are evaluating 2 blockers, encouraged with performance, but don't expect commercial sales in 2011 from either company even if selected for development in 2011
- Nestle does not currently has North American rights for savory enhancers
- European flavor association believes reference list will be published by year-end 2011 (was supposed to be in 2010 though...)
- Salt is currently a biology stage program, the major focus at this level at SNMX currently
- Pepsi has convinced SNMX that they would move rapidly to market once they have a suitable enhancer in hand
- Milestones for 2011 could include selection of development candidates for ehancing sucrose, frustose, and bitter blockers