That Business Week article says - "Since last September, Nestle, Coca-Cola, Campbell Soup, and Kraft Foods have signed up to use Senomyx's compounds." But from the Senomyx website, the collaborations with these companies go back as far as 2000 (Kraft 12-00, Campbell 3-01, Coca-Cola 4-02, Nestle 4-02), with various extensions. So I'm not sure where they came up with "last September".
Jill, I don't think Dew was bashing, just pointing out the large gap in available information for this stock. For most bio companies, analysts can reasonably estimate royalties as high teens, low teens, high single digits, etc, even when the actual figures are confidential, based on similar deals for other company's compounds at comparable stages of clinical development. Looking at Senomyx however, there's a huge difference between 1% and 4%, so until we get a better idea about the actual rates, there's no way to accurately value the company. If Senomyx starts giving some revenue guidance for 2006 though, we can begin to make some better guesstimates. |
