Thursday, November 14, 2013

Seeking Alpha: Senomyx Is Getting A Second Wind On Commercialization Potential

I can't stand casinos, so I suppose I use investments like Senomyx (SNMX) to scratch that speculative itch. That's not to say that I don't do the same level of due diligence before, but I go in with open eyes about the likelihood of the story working out. For most of the past three years, it didn't look like this story was going to have a happy ending, as the Street's frustration with an apparent lack of progress in the company's research efforts and licensing relationships took the stock from over $7 to below $2.

Now it looks like the story is heading in the other direction. Although licensing relationships with companies like Nestle (OTC:NSRGY) and Ajinomoto really haven't delivered much and the company is pursuing an uncertain path of commercializing its own compounds, management believes that its key asset (S617) may get FDA approval in the first quarter of 2014 and start appearing in PepsiCo (PEP) products next year.

With management issuing bold guidance for profitability in 2015, these shares may still have room to run and reward those shareholders who've had the patience to hang on this long. In fact, if Pepsi beverages containing S617 can get 20% of the U.S. diet soda market and Senomyx's own commercialization strategies can deliver 5% share in markets like sugar reduction and savory enhancement, upside of more than 80% is possible from here.

Follow this link to continue:
Senomyx Is Getting A Second Wind On Commercialization Potential

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