Senomyx (SNMX) Implements Restructuring; Plans 14% Headcount Reduction

On January 22, 2015, Senomyx, Inc. (Nasdaq: SNMX)(the "Company") implemented a restructuring plan (the “Plan”) designed to improve operating efficiencies. Under the Plan, the Company expects to reduce the Company’s work force by approximately14 percent, or 16 full-time equivalent employees. The Company expects to substantially complete the Plan in the first quarter of 2015.

In connection with the Plan, the Company will focus its research and development efforts on sweet taste modifiers, natural high intensity sweeteners, and flavors improving the taste of reduced salt products. The Company will continue to invest in its commercialization initiatives including direct sales and activities supporting its collaborators’ commercialization of the Company’s flavor ingredients.

Under the Plan, with the resulting staff and other expense reductions, the Company expects to reduce its expenses by approximately $2.5 million, net of severance and other costs, for the balance of 2015 and approximately $3.5 million on an annualized basis, thereafter.

The Company is offering severance benefits to the affected employees, including cash severance payments, outplacement services and payment of COBRA health care coverage for specified periods. In addition, the Company has offered to accelerate the vesting of specified stock options. Each affected employee’s eligibility for the severance benefits is contingent upon such employee’s execution of a separation agreement, which includes a general release of claims against the Company.

The Company expects to record restructuring-related expenses in 2015 totaling approximately $440,000 related to termination benefit costs and other costs associated with the workforce reduction. Approximately $400,000 of these expenses are expected to represent cash expenditures, most of which will be expensed and paid in the first quarter of 2015. The remaining approximately $40,000 are one-time, non-cash, stock-based compensation expenses and are expected to be expensed in the first quarter of 2015.

The Company ended 2014 with $28.7 million in cash and investments. The Company’s collaborators have committed to $21.3 million in development funding payments scheduled to be paid between January 2015 and May 2016. The Company does not have plans to raise money through the issuance of equity or debt to fund the current scope of its operations.

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