SAN DIEGO — Senomyx, Inc. has entered into a collaborative agreement with Cadbury Adams USA L.L.C., a unit of Kraft Foods Inc., regarding the development and worldwide commercialization of certain novel flavor modulators for potential use in the gum and medicated confectionery product categories.

Under the terms of the agreement, Cadbury Adams has agreed to pay Senomyx development funding and specified payments upon the achievement of milestones during the collaborative period. Cadbury Adams may evaluate and select flavor modulators for commercialization, after which Senomyx will receive royalty payments based on sales of products using the new flavor modulators.

“Senomyx had a relationship with Cadbury Adams prior to its acquisition by Kraft Foods, and we are pleased to initiate this new collaboration,” said Kent Snyder, chief executive officer of Senomyx. “We look forward to working with them again.”