Momenta Pharmaceuticals Inc.
) reported first quarter 2014 net loss per share of 53 cents,
narrower than the Zacks Consensus Estimate of a loss of 55 cents
but wider than the year-ago loss of 48 cents per share. First
quarter revenues of $10.8 million were up 41.8% year over year.
Revenues surpassed the Zacks Consensus Estimate of $9 million.
Revenues comprised entirely of collaboration revenues which
included product revenues and research and development
Product revenues represented royalty received from
) pertaining to sales of the generic version of Lovenox. Product
revenues were $4.8 million, below the year-ago revenues of $5.4
Research and development expenses were $26.7 million, up from
$22.3 million in the year-ago quarter. The increase was
attributable to biosimilars process development and research
costs, personnel expenses, facilities-related expenses and
laboratory supplies. General and administrative expenses
increased to $11.7 million from $9.7 million in the year-ago
quarter. The increase was attributable to professional fees due
to intellectual property work, personnel expenses,
facilities-related expenses and stock-based compensation
Apart from reporting first quarter earnings, Momenta provided
an update on its pipeline. Momenta's generic version of
Teva Pharmaceutical Industries Ltd.
) Copaxone (M356) is currently under FDA review. On Mar 31, 2014,
the U.S. Supreme Court agreed to hear Teva's appeal of a decision
from the U.S. Court of Appeals for the Federal Circuit that
invalidated the claim of U.S. Patent 5,800,808 covering Copaxone.
The Supreme Court is likely to hear the case in the fourth
quarter of 2014.
Three biosimilar candidates are currently under development,
namely, M923 and M834 for autoimmune and other inflammatory
indications, and M511 for the treatment of cancer. As per the
worldwide biosimilar collaboration with Baxter for M923 and M834,
Momenta expects to achieve milestone payments worth $19 million
in the second half of 2014. M923 will enter the clinic in Europe
at the end of 2014. For M511, Momenta may seek a new
collaboration partner to assist in its development and
2014 Guidance Lowered
As the patent is under review, Momenta adjusted guidance.
Total operating expenses, excluding stock-based compensation and
net of collaborative revenues, are now expected in the range of
$28-$30 million per quarter, below the prior guidance of $30-$32
million per quarter. Momenta expects average net cash usage
(excluding revenue from the potential launch of M356) in the
vicinity of $28 million per quarter, below the earlier forecast
of $30 million per quarter.
Momenta carries a Zacks Rank #2 (Buy). The approval of the
generic version of Copaxone was a major development milestone for
Momenta. However, the latest development on the Copaxone case
will deter the company from launching its generic version before
the Supreme Court's decision. Shares of Momenta fell 7.6% after
the earnings release.
However, 2014 will be eventful for Momenta as its first
biosimilar, M923, will enter the clinic, M402 (novel drug) will
commence part B of its phase I/II trial and the Supreme Court
hearing is expected before the year ends.
Investors looking for better-ranked stocks may consider
Gilead Sciences Inc.
), which holds a Zacks Rank #1 (Strong Buy).
GILEAD SCIENCES (GILD): Free Stock Analysis
MOMENTA PHARMA (MNTA): Free Stock Analysis
NOVARTIS AG-ADR (NVS): Free Stock Analysis
TEVA PHARM ADR (TEVA): Free Stock Analysis
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