Momenta Pharmaceuticals Inc.
) reported fourth quarter 2012 net loss per share of 35 cents,
narrower than the Zacks Consensus Estimate of a loss of 41 cents,
but wider than the year-ago loss of 2 cents. The wider year over
year loss was primarily attributable to lower revenues.
Fourth quarter revenues of $12.7 million were down 56.8% year
over year. Revenues surpassed the Zacks Consensus Estimate of $10
Full year 2012 net loss per share was $1.16 compared with
earnings per share of $3.55 in 2011. The Zacks Consensus Estimate
for 2012 hinted at a net loss of 71 cents per share. Revenues in
2012 declined 77.4% year over year to $63.9 million. Revenues for
2012 were below the Zacks Consensus Estimate of $81 million.
Lower sales and unfavorable pricing of Momenta's generic
) Lovenox contributed to the decline. We note that Momenta and
Sandoz inked a deal in Nov 2003 to jointly develop and
commercialize a generic version of Lovenox.
We note that following the launch of a competitor's generic
version of Lovenox in Jan 2012 there was a change in the revenues
that Momenta receives from Sandoz. The change was from a hybrid
profit share to a straight royalty structure.
Sandoz reported fourth quarter 2012 generic Lovenex net sales
of $85 million, down 62.2% year over year.
In the fourth quarter of 2012 research and development
expenses were $1.9 million, compared with $3.3 million in the
year ago quarter. The increase was attributable to Momenta's
efforts to develop its pipeline. In 2012 general and
administrative expenses were $43.7 million, compared with $38.7
million in the year ago quarter.
Total operating expenses, excluding stock-based compensation
and net of collaborative revenue, are expected around $30 million
per quarter in 2013. Momenta expect average net cash usage in the
range of $20 million to $24 million per quarter for a total
operating cash usage of roughly $90 million.
Apart from releasing its earnings results, Momenta also
provided an update on its pipeline. Momenta stated that the
abbreviated new drug application (ANDA) for M356, its generic
Teva Pharmaceutical Industries Ltd.
) Copaxone, is under active review by the US Food and Drug
Administration (FDA). In the patent litigation bought by Teva
against Sandoz and Momenta, appellate briefing for the patent is
expected to be completed in the current quarter.
Three biosimilar products are currently under development,
namely, M923 and M834 for the treatment of autoimmune and other
inflammatory indications, and M511 for the potential treatment of
cancers. Momenta intend to submit an Investigational New Drug
(IND) application for M923 in 2014.
Momenta carries a Zacks Rank #3 (Hold). Right now,
) looks more attractive with a Zacks Rank #1 (Strong Buy).
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