Firmenich SA decides to continue with commercial development of S6973

Senomyx, Inc. (NASDAQ: SNMX), a leading company focused on using proprietary technologies to discover and develop novel flavor ingredients for the food, beverage, and ingredient supply industries, announced today that Firmenich SA, the world's largest privately-owned fragrance and flavor company, has made a decision to proceed with commercial development of S6973, Senomyx’s enhancer of sucrose (table sugar) that has demonstrated the ability to reduce up to 50% of the sugar in a variety of products while maintaining the taste of natural sugar. In conjunction with the decision, Senomyx will receive an $8 million license fee payment from Firmenich.

“S6973 is a unique flavor ingredient that can help manufacturers provide a significant reduction in the sugar content of their products without compromising on taste. Senomyx is looking forward to working with Firmenich as they begin pre-commercial activities.”

“Senomyx is extremely pleased that after a thorough evaluation, Firmenich has decided to select S6973 as the first Senomyx sucrose enhancer to be commercialized,” said Kent Snyder, Chief Executive Officer of the Company. “S6973 is a unique flavor ingredient that can help manufacturers provide a significant reduction in the sugar content of their products without compromising on taste. Senomyx is looking forward to working with Firmenich as they begin pre-commercial activities.”

As announced previously, in August 2009 Senomyx and Firmenich entered into a collaborative research, development, commercialization and license agreement related to Senomyx’s Sweet Enhancers, which are novel flavor ingredients intended to enhance the taste of sucrose, fructose, and Rebaudioside (stevia). The agreement provides that during the collaborative period Firmenich will have exclusive rights to commercialize selected Senomyx Sweet Enhancers worldwide in virtually all food product categories not currently licensed to other companies. In return, Firmenich agreed to pay to Senomyx shared funding of ongoing research, license fees, and royalties on sales of Senomyx’s Sweet Enhancers developed under the collaboration. Senomyx received an initial license fee payment of $10 million from Firmenich following execution of the agreement.

A second $10 million license fee was scheduled to be payable to Senomyx following Firmenich’s decision to commercialize a Senomyx Sweet Enhancer that received regulatory approval. In November 2009, following receipt of Generally Recognized As Safe (GRAS) regulatory designation for S6973, the companies agreed that Firmenich would conclude its evaluation of S6973 in February 2010. In addition, Senomyx received a non-refundable $2 million payment fee from Firmenich based on its encouraging preliminary evaluation of S6973. Firmenich’s current decision to proceed with commercial development of S6973 triggers payment of the remaining $8 million portion of the second license fee.