Senomyx inks $62 Mil. deal with PepsiCo to make sweeteners
Senomyx inks deal with PepsiCo to make sweeteners
By Keith Darcé, UNION-TRIBUNE
Tuesday, August 17, 2010 at 4:10 p.m.
Senomyx, a San Diego biotechnology company that develops flavors for the food and beverage industry, has teamed with global drink giant PepsiCo to create sweet enhancers and high-potency sweeteners for low-calorie beverages.
The four-year deal is potentially worth more than $62 million to Senomyx, making it the most lucrative collaboration ever signed by the local company.
PepsiCo will pay Senomyx $30 million upfront and $32 million over the life of the collaboration for research and development work. Senomyx also will receive milestone payments for certain achievements and royalties from flavor ingredients that end up in PepsiCo products.
Shares of Senomyx rose 23 cents, or 6 percent, on Tuesday to close at $4.04.
The deal will have little effect on the company’s work force, which numbers about 100 people, said Kent Snyder, the company’s chief executive. “In the short term, we’ll be adding certain postilions, but in general we have sufficient resources to carry out our commitment.â€
