The La Jolla-based biotech firm said that during the extension period which runs through July 30, 2005, the company will begin working with the food behemoth on the discovery and development of novel flavor modifiers in "a new product field in the dessert category."
Senomyx will be entitled to royalty payments based on sales of Kraft products containing any flavor enhancers developed under the agreement, said the two companies.
Last month four savory enhancers, aimed at companies wanting to reduce the amount of monosodium glutamate added to their foods, developed by Senomyx were awarded FEMA GRAS.
Senomyx received Generally Recognized as Safe (GRAS) determination from the Food and Extract Manufactures Association (FEMA) - a regulatory body of the FDA - for four of its savory enhancers.
Savory enhancers S807 and S336, in addition to enhancers S263 and S976, which are closely related to S336, were determined as GRAS.
Senomyx claims that it is the first biotechnology company to receive this FEMA GRAS determination.
The company's savory enhancers activate taste receptors by, they claim, augmenting the flavor of naturally occurring glutamate found in many food and beverage products and therefore reduce - or even eliminate - the amount of MSG necessary to achieve a "savory" taste in foods.
Senomyx expects the first commercial sales of foods containing these enhancers to be made in early 2006.
In addition to Kraft, the Californian biotech firm is currently working with Nestle, Campbell Soup and Coca Cola. The GRAS determination will allow these companies to begin test marketing the enhancers in some well-known foods.