The company said it expected to remain on track to meet full year sales expectations of between $20m and $24m with the launch of a number of new product and development initiatives over the period.
Commencement of research into the S6973 Sucrose enhancer, which the company claims can cut sucrose formulation requirements by 50 per cent without affecting taste, was one key are in meeting these expectations.
The anticipated obtainment of generally recognized as safe (GRAS) approval for its S2383 Sucralose sweetener enhancer at the end of 2008 would prove to be another vital driver for growth, the company said.
Senomyx’s research and development expenses rose by about 18 per cent to $16.3m over the period as a result of a higher number of employees in R&D and greater outsourcing of patent filing, the group said.
The company added that for the second quarter ending 30 June, profit and sales had fallen over the same time last year due to earnings from what the company called ‘a non-recurring research milestone’.
John Poyhonen, chief financial and business officer for the group said that the company was nonetheless on target in regards to twelve-month earnings, though product development remained crucial to this focus.
“The achievement of these goals continues to be dependent upon the success of business development activities,” he said.
Company president Kent Snyder claimed that innovation towards extending its portfolio of sweetener enhancers would be a major focus in the coming months, particularly for high fructose corn syrup.
“Following the successful discovery of the sucrose and sucralose enhancers, the focus of our Sweet Enhancer Program discovery activities has now shifted to the identification of enhancers of fructose,” he said.
Ongoing development and discovery partnerships with both confectioner Cadbury for its gum ingredients, and the Japan-based food and amino acid producer Ajinomoto were also highlighted as key growth drivers over the period.
“The beginning of 2008 was also notable for our business activities,” Snyder claimed.
“In addition to the extension of our partnership with Cadbury, we were pleased to extend our collaborative agreements with Nestlé, the world’s largest food and beverage company, and with The Coca-Cola Company, both in April.”