Boston, MA 03/20/2014 (wallstreetpr) – We get started with the clarification from the U.S. Food and Drug Administration, otherwise known as FDA, saying that it was not party to the GRAS (generally recognized as safe) claim on a sweetener being fronted by Senomyx Inc. (NASDAQ:SNMX). The Fed regulator stated that the sweetener – Sweetmyx, was GRAS designated by a trade group, not by it. But that clarification or retraction hasn’t changed the course of the stock. Investors continue to buy in anticipation of a boom given that the product bears great revenue potential.
The growing concern over the safety of sugar sweeteners is putting a lot of strain in the business of carbonated drinks and beverage manufacturers. Companies like Coca-Cola Company (NYSE:KO) and PepsiCo Inc (NYSE:PEP) are constantly seeking better ways to enhance the tastes of their products to avoid market fallout caused by sugar-based sweeteners. And Sweetmyx comes as the ultimate solution for the beverage industry. No wonder PepsiCo has moved to ink an exclusive beverage deal with Senomyx Inc. (NASDAQ:SNMX) for the product.
Moving to profitability
Senomyx Inc. (NASDAQ:SNMX) ended up with losses in the last quarter as well as fiscal year 2013. The company suffered net loss of 8 cents per share for the quarter ended December 31. That contrasted with loss of 6 cents in the corresponding quarter a year ago. In full-year 2013, the company suffered 29 cents net loss, against 23 cents loss in 2012.
But Senomyx Inc. (NASDAQ:SNMX) now wants you to believe that it is moving to the end of its losses. The company entered 2014 with solid balance sheet, showing $33 million cash and not tainted with debt. With the $33 million cash, the company stated that it is enough funds to run its programs this year without turning to share dilution or debts. In fact, according to CFO Tony Rogers, the company anticipates to achieve profitability 2015.
What about 2014?
In the current year, Senomyx is looking to generating revenue in the range of $32 – $35 million, most of which is expected to come from commercial deals. The company is looking up to a narrower net loss of between 23 cents and 28 cents per share in the current fiscal year. On that note, cash at the end of the year is expected to be greater than $25 million.
