UPDATE 2-Senomyx in $30 mln deal for sweeteners with PepsiCo

* Senomyx to receive upfront payment of $30 mln

* PepsiCo to have Senomyx sweet flavor ingredients rights

* Senomyx to be eligible for milestone payments

* Senomyx shares up as much as 11 pct
(Recasts, adds details, updates stock movement)

Aug 17 (BestGrowthStock) – Senomyx Inc (SNMX.O: ) signed a four-year
deal with PepsiCo Inc (PEP.N: ) to develop sweeteners for the
food and beverage giant, two months after it broke ties with
long-standing partner Coca-Cola Co (KO.N: ).

San Diego, California-based Senomyx, which develops flavors
for the packaged food, beverage and ingredient supply
industries, will receive an upfront payment of $30 million from
PepsiCo, $7.5 million of which was paid previously.

In June, the companies entered into a 60-day negotiation
period to finalize the deal after Senomyx and its
eight-year-old partner Coca-Cola failed to reach a new
agreement.

In its deal with Coca-Cola, Senomyx had received about $17
million over a period of eight years.

In a joint statement Tuesday, PepsiCo and Senomyx said
Senomyx will be entitled to $32 million in research and
development payments over the four-year period.

Senomyx will be eligible for milestone payments based on
certain achievements and PepsiCo will retain the option to
extend the research collaboration for two more years.

In a regulatory filing, Senomyx said PepsiCo has rights to
terminate the agreement if any direct competitor of PepsiCo
acquires more than 30 percent of its outstanding voting
securities. [ID:nWNAB8705] [ID:nWNAB8699]

Shares of Senomyx were up about 8 percent at $4.12 in
Tuesday afternoon trade on Nasdaq. They touched a high of $4.24
earlier in the session.

Senomyx shares have climbed over 50 percent since their low
of $2.47 on Feb. 12, when the company announced a stock
offering at a steep discount.
(Reporting by Krishnakali Sengupta in Bangalore; Editing by
Maju Samuel)

UPDATE 2-Senomyx in $30 mln deal for sweeteners with PepsiCo