Momenta Pharmaceuticals Inc.
) shares were up slightly (0.7%) following the release of
second-quarter 2014 results with the company reporting a loss of 51
cents per share, narrower than the year-ago loss of 57 cents.
However, second quarter loss was wider than the Zacks Consensus
Estimate of a loss of 49 cents.
Momenta Pharmaceutical - Earnings Surprise |
Second-quarter revenues surged 151.1% to $10.9 million from the
year-ago period. Revenues were well above the Zacks Consensus
Estimate of $5 million. Total revenue comprised product revenues
($5.7 million) and research and development revenues ($5.3
The Quarter in Detail
Research and development (R&D) expenses were $26.1 million,
up 18.6% from the year-ago quarter. The increase was due to
biosimilars process development and research costs, personnel
expenses, facility-related expenses and laboratory supplies and
General and administrative (G&A) expenses decreased 2.6% to
$11.2 million from the year-ago quarter primarily driven by a
decrease in legal fees.
Necuparanib, Momenta's lead candidate, is in a phase I/II study,
in combination with Abraxane and Gemzar for advanced metastatic
pancreatic cancer. Data from part A of the study should be out in
the second half of 2014. The company intends to initiate part B by
M356, Momenta's generic version of Teva's (TEVA) Copaxone is
currently under FDA review and is being reviewed as a high priority
abbreviated new drug application (ANDA). Momenta and partner,
Sandoz (the generics arm of Novartis (
)) intend to launch the generic version of Copaxone in 2014, on
Momenta stated that it will reserve any revenue earned from the
launch of the generic version of Copaxone until the U.S. Supreme
Court's decision is declared, provided it is approved by the FDA.
We remind investors that the U.S. Supreme Court agreed to hear
Teva's request for
in the generic Copaxone patent litigation. The Supreme Court will
hear the case on Oct 15.
Meanwhile, Momenta and Baxter (
) are jointly developing M923 and M834 for autoimmune and other
inflammatory indications. Momenta expects to achieve milestone
payments of $19 million from Baxter under the collaboration
agreement for M923 and M834.
Momenta announced that it will discontinue the development of an
oncology candidate, M511. In Dec 2013, Baxter withdrew from the
development process of the candidate following an internal
Momenta continues to expect total operating expenses, excluding
stock-based compensation and net of collaborative revenues, in the
range of $28 million - $30 million per quarter. Momenta expects
average net cash usage (excluding revenue from the potential launch
of M356) to be approximately $26 million per quarter (previously
forecasted at $28 million per quarter).
The latest development on the Copaxone case will deter the company
from launching its generic version. To get the generic version of
Copaxone approved is an important development milestone for
Momenta. We expect investors to focus on the hearing by the Supreme
Court on Oct 15.
Meanwhile, we are pleased with the company's decision to reallocate
resources from the development of M511 to other early-stage
biosimilar programs with the aim of broadening its base.
Momenta carries a Zacks Rank #3 (Hold). A better-ranked stock in
the health care sector is Actelion Ltd. (
), sporting a Zacks Rank #1 (Strong Buy).
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