Senomyx, Inc. (SNMX)

Senomyx Inc is engaged in discovery and development of new flavor ingredients and flavor modulators, which modifies the taste of food and beverages, reducing sugar and salt concentration. It primarily focuses on the development of savory, sweet, salt and bitter flavors, flavor enhancers and taste modulators. The company has partnered with leading packaged food and beverages players like Nestle, Coca Cola, Kraft, Campbell Soup, Cadbury-Schweppes and Ajinomoto. These agreements provide the Company's partners exclusive or co-exclusive use of Senomyx's flavor ingredients in specific product categories and geographies.

Manufacturers in the packaged food and beverage industry are targeting growth categories like health, wellness, convenience and premium taste. Companies are pursuing various strategies to position its products based on formulations including flavorings, health promoting and preservation ingredients. Senomyx is capable of screening hundred thousand compounds annually using the company proprietary taste receptor based assays and screening technologies. Senoymx has leveraged its technology on discovery and development of natural high potency sweetener. The demand for no calorie or low calorie alternatives presents a sizeable market opportunity.

However, even with strong industry growth and modest rise in revenues, the company expects to incur losses for 2007 on account of stock based compensation. With high dependence on its relationship with its collaborative partners and their ability to commercialize products, the stock does not attract investors. Also the management expects net loss per share in the range of $0.89 to $0.96 for 2007, as compared with net loss per share of $0.77 for 2006.