Senomyx (SNMX)

Revenue

We derive revenue from our product discovery and development collaborations. To date, our revenue has come solely from upfront fees, research and development funding, reimbursement of certain regulatory costs, milestone payments and royalty payments under our product discovery and development collaboration agreements. As of December 31, 2008, we have recognized cumulative revenue under our collaborations of $84.6 million. If any of these collaborative agreements were to be terminated, this could have a significant effect on future revenues.

From our inception date to the present, research and development payments represented the primary source of our revenue. Based on current collaborations, we anticipate that substantially all of our revenues in the near future will be derived from research and development payments.  We may receive additional milestone payments in the future upon the achievement of certain goals set forth in our collaboration agreements.

In addition, as our collaborators launch products incorporating our flavor ingredients, we receive minimum periodic royalties and royalty payments based upon the sales of those products, which in the future could be significantly larger than research and development funding or milestone payments. In order for us to generate material royalty revenue and become profitable, we must retain our existing or establish new product discovery and development collaborations and our collaborators must commercialize products incorporating one or more of our flavor ingredients. Our ability to generate material royalty revenue is uncertain and will depend upon our ability to meet particular research, development and commercialization objectives.

Revenue

We derive revenue from our
product discovery and development collaborations. To date, our revenue has come
solely from upfront fees, research and development funding, reimbursement of
certain regulatory costs, milestone payments and royalty payments under our
product discovery and development collaboration agreements. As of December 31,
2008, we have recognized cumulative revenue under our collaborations of $84.6
million. If any of these collaborative agreements were to be terminated, this
could have a significant effect on future revenues.

From our inception date to
the present, research and development payments represented the primary source
of our revenue. Based on current collaborations, we anticipate that
substantially all of our revenues in the near future will be derived from
research and development payments.  We
may receive additional milestone payments in the future upon the achievement of
certain goals set forth in our collaboration agreements.

In addition, as our
collaborators launch products incorporating our flavor ingredients, we receive
minimum periodic royalties and royalty payments based upon the sales of those
products, which in the future could be significantly larger than research and
development funding or milestone payments. In order for us to generate material
royalty revenue and become profitable, we must retain our existing or establish
new product discovery and development collaborations and our collaborators must
commercialize products incorporating one or more of our flavor ingredients. Our
ability to generate material royalty revenue is uncertain and will depend upon
our ability to meet particular research, development and commercialization
objectives.

Revenue

We recorded revenue of $13.7 million and $11.9 million during the nine months ended September 30, 2008 and 2007, respectively.  The increase of $1.8 million was primarily due to the recognition in 2008 of four months of revenue related to the third amendment of our collaboration agreement with Ajinomoto, as compared to two months of revenue in 2007.  The Ajinomoto amendment was entered into during August 2007, and revenue related to this amendment was recognized over the period August 2007 through April 2008.  The increase was also due to the earnings of three research milestones totaling $1.1 million in 2008, as compared to one research milestone of $500,000 in 2007.  Research and development payments, license fees, milestones, cost reimbursements and commercial revenues under collaborations with Ajinomoto, Cadbury, Campbell, Coca-Cola, Firmenich, Nestlé and Solae accounted for 100% of total revenues for the nine months ended September 30, 2008.  Research and development payments, license fees and milestones under collaborations

10

Revenue

We derive revenue from our product discovery and development collaborations. To date, our revenue has come solely from upfront fees, research and development funding, reimbursement of certain regulatory costs, milestone payments and royalty payments under our product discovery and development collaboration agreements. As of December 31, 2007, we have recognized cumulative revenue under our collaborations of $67.4 million. If any of these collaborative agreements were to be terminated, this could have a significant effect on future revenues.

From our inception date to the present, research and development payments represented the primary source of our revenue. Based on current collaborations, we anticipate that substantially all of our revenues in the near future will be derived from research and development payments.  We may receive additional milestone payments in the future upon the achievement of certain goals set forth in our collaboration agreements.

In addition, as our collaborators launch products incorporating our flavor ingredients, we receive minimum periodic royalties and royalty payments based upon the sales of those products, which in the future could be significantly larger than research and development funding or milestone payments. In order for us to generate material royalty revenue and become profitable, we must retain our existing or establish new product discovery and development collaborations and our collaborators must commercialize products incorporating one or more of our flavor ingredients. Our ability to generate material royalty revenue is uncertain and will depend upon our ability to meet particular research, development and commercialization objectives.

Revenue

We derive revenue from our
product discovery and development collaborations. To date, our revenue has come
solely from upfront fees, research and development funding, reimbursement of
certain regulatory costs, milestone payments and royalty payments under our
product discovery and development collaboration agreements. As of December 31,
2007, we have recognized cumulative revenue under our collaborations of $67.4
million. If any of these collaborative agreements were to be terminated, this
could have a significant effect on future revenues.

From our inception date to
the present, research and development payments represented the primary source
of our revenue. Based on current collaborations, we anticipate that
substantially all of our revenues in the near future will be derived from
research and development payments.  We
may receive additional milestone payments in the future upon the achievement of
certain goals set forth in our collaboration agreements.

In addition, as our
collaborators launch products incorporating our flavor ingredients, we receive
minimum periodic royalties and royalty payments based upon the sales of those
products, which in the future could be significantly larger than research and
development funding or milestone payments. In order for us to generate material
royalty revenue and become profitable, we must retain our existing or establish
new product discovery and development collaborations and our collaborators must
commercialize products incorporating one or more of our flavor ingredients. Our
ability to generate material royalty revenue is uncertain and will depend upon
our ability to meet particular research, development and commercialization
objectives.

Revenue

We derive revenue from our product discovery and development collaborations. To date, our revenue has come solely from upfront fees, research and development funding, reimbursement of certain regulatory costs and milestone payments under our product discovery and development collaboration agreements with Ajinomoto, Cadbury Schweppes, Campbell, Coca-Cola, Kraft Foods and Nestlé. As of December 31, 2006, we have recognized cumulative revenue under our collaborations of $49.2 million. If any of these collaborative agreements were to be terminated, this could have a significant effect on future revenues.

From our inception date to the present, research and development payments represented the primary source of our revenue. Based on current collaborations, we anticipate that substantially all of our revenues in the near future will be derived from research and development payments, and we may receive additional milestone payments in the future upon the achievement of certain goals set forth in our collaboration agreements.

In addition, in the event our collaborators launch products incorporating our flavor ingredients, we will receive royalty payments based upon the future sales of those products, which, if received, could be significantly larger than research and development funding or milestone payments. In order for us to generate royalty revenue and become profitable, we must retain our existing or establish new product discovery and development collaborations and our collaborators must commercialize products incorporating one or more of our flavor ingredients. Our ability to generate royalty revenue is uncertain and will depend upon our ability to meet particular research, development and commercialization objectives.

Revenue

We derive revenue from our product discovery and development collaborations. To date, our revenue has come solely from upfront fees, research and development funding, reimbursement of certain regulatory costs and milestone payments under our product discovery and development collaboration agreements with Cadbury Schweppes, Campbell Soup, Coca-Cola, Kraft Foods and Nestlé. As of December 31, 2005, we have recognized cumulative revenue under our collaborations of $37.0 million. If any of these collaborative agreements were to be terminated, this could have a significant effect on future revenues.

From our inception date to the present, research and development payments represented the primary source of our revenue. Based on current collaborations, we anticipate that substantially all of our revenues in the near future will be derived from research and development payments, and we may receive additional milestone payments in the future upon the achievement of certain goals set forth in our collaboration agreements.

In addition, in the event our collaborators launch products incorporating our flavors, flavor enhancers or taste modulators, we will receive royalty payments based upon the future sales of those products, which, if received, could be significantly larger than research and development funding or milestone payments. In order for us to generate royalty revenue and become profitable, we must retain our existing or establish new product discovery and development collaborations and our collaborators must commercialize products incorporating one or more of our flavors, flavor enhancers or taste modulators. Our ability to generate royalty revenue is uncertain and will depend upon our ability to meet particular research, development and commercialization objectives.

42

Revenue

We derive revenue from our product discovery and development collaborations. To date, our revenue has come solely from research and development funding and milestone payments under our product discovery and development collaboration agreements with Campbell Soup, Coca-Cola, Kraft Foods and Nestlé. As of December 31, 2004, we have recognized cumulative revenue under our collaborations of $27.6 million. If any of these collaborative agreements were to be terminated, this could have a significant effect on future revenues.

From the company’s inception date to the present, research and development payments represented the primary source of our revenue. Based on current collaborations, we anticipate that substantially all of our revenues in the near future will be derived from research and development payments, and we may receive additional milestone payments in the future upon the achievement of certain goals set forth in our collaboration agreements.

In addition, in the event our collaborators launch products incorporating our flavors, flavor enhancers and taste modulators, we will receive royalty payments based upon the future sales of those products, which, if received, could be significantly larger than research and development funding or milestone payments. In order for us to generate royalty revenue and become profitable, we must retain our existing or establish new product discovery and development collaborations and our collaborators must commercialize products incorporating one or more of our flavors, flavor enhancers or taste modulators. Our ability to generate royalty revenue is uncertain and will depend upon our ability to meet particular research, development and commercialization objectives.