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 (Reuters) - 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)