The company made a net loss of $4.7m during the quarter, a narrower loss than the $8m of Q2 2009. Revenues were $5.7m for the quarter, up from $3m a year earlier.
Senomyx CEO Kent Snyder said: “The second quarter of 2010 has been very active for Senomyx… Nestlé, the world's largest food and beverage company, is currently conducting marketing activities in the Pacific Rim, Latin America, and Africa with both new and reformulated established products that incorporate Senomyx's savory flavor ingredients.”
He added that those ingredients were the subject of a favorable opinion from the European Food Safety Authority during the quarter, which could open up significant new opportunities for Senomyx in Europe.
In addition, Ajinomoto is introducing products that contain a Senomyx flavor ingredient; Firmenich is continuing the marketing of the company’s sucralose enhancer; and the primary safety studies have been completed regarding its bitter blocker program.
Sweet technology
"We are also enthusiastic about the success Senomyx has had with our sweet enhancer program," Snyder said.
The company said on June 24 that it had signed a letter agreement with PepsiCo to negotiate a collaboration agreement related to Senomyx’s sweet taste technology. The agreement followed a failure to negotiate terms for a renewed deal with Coca-Cola.
Beverage makers have become increasingly interested in finding ways to reduce the quantities of nutritive sweeteners in their products without affecting taste, in an effort to tap into consumer demand for drinks with healthier nutrition profiles. And Senomyx has been developing flavor ingredients that could help them achieve this.
No new deal with Coca-Cola
In April, the company said that it was negotiating a potential continuation and expansion of its collaboration with Coca-Cola. However, the companies were unable to reach an agreement during a 60-day negotiation period and they are no longer working together.
CEO Kent Synder said in a conference call with investors on Thursday: “Despite those companies’ efforts we were unable to reach mutually satisfactory terms for a new collaborative research agreement within the period and accordingly, the term sheet expired on June 22. Coca-Cola was a valued Senomyx partner for eight years and we appreciate having worked with them.”