Senomyx strengthens position in global flavor market
companies in order to tap new markets and consolidate established
relationships.
First of all, the company has entered into a new research, development, commercialization and license agreement with Ajinomoto, a move that will enable the firm to move into the lucrative Asian market.
"We are extremely pleased to establish a new collaboration with Ajinomoto, a leader within Japan and other Asian markets," said Senomyx president Kent Snyder.
"We believe this collaboration provides further validation of our approach while creating access within a number of large product categories."In addition, this collaboration supports our strategy of establishing partnerships with market leading companies that provide regional expertise on the taste characteristics preferred by local consumers."
During the three-year collaborative period, the company will work with Ajinomoto on the discovery and development of novel flavor ingredients on an exclusive basis in the soup, sauce and culinary aids, and noodle product categories and on a co-exclusive basis in the bouillon product category within Japan and other Asian markets, including China and additional key countries.
Ajinomoto has agreed to pay Senomyx an upfront license fee, discovery and development funding, and specified payments upon the achievement of milestones during the collaborative period.
Upon commercialization, Senomyx will be entitled to royalty payments based on sales of Ajinomoto products containing any flavor ingredients developed under the agreement.
In addition, the company has announced the amendment of its agreement with European food giant Nestlé. The agreement, which includes the discovery and commercialization of novel flavors and flavor enhancers, has been amended to allow Senomyx to reacquire rights to certain of its flavor ingredients in certain geographic regions.
As a result of the amendment, Nestlé now has rights to flavor ingredients in Europe, Asia, Israel, Oceania, Africa, the Middle East, and Latin America in specified product categories, while Senomyx has certain rights in North America and specified product categories in other geographic regions.
"Senomyx seeks to maximize the value of our assets by granting license rights in specified geographies to the flavor ingredients resulting from our discovery and development programs based on the strengths and needs of our partners," said Snyder.
"The strategy of granting either worldwide or selected regional rights is intended to enable Senomyx to optimize potential royalties that could be received from commercialization of products containing the Company's flavor ingredients."
Snyder says that Senomyx now has eight product discovery and development collaborations with six companies: Ajinomoto, Cadbury Schweppes, Campbell Soup, Coca-Cola, Kraft Foods, and Nestlé.
"We believe that these collaborations provide further validation of Senomyx's technology and business model, and are consistent with our goal of maximizing Senomyx's economic value by continuing to leverage our unique capabilities," he said.
