Momenta Pharmaceuticals Inc.
reported second quarter 2013 net loss per share of 57 cents,
wider than the Zacks Consensus Estimate of a loss of 47 cents and
the year-ago loss of 20 cents.
Second quarter revenues of $4.4 million were down 79.9% year
over year. Revenues missed the Zacks Consensus Estimate of $9
million. Product revenue in the reported quarter was $1.6
million, down 91.6% year over year. Product revenues represent
royalty received from
Novartis AG's (
generic unit, Sandoz Inc., after the adjustment of Momenta's
share of pre-marketing development expenses under its
collaboration with Sandoz. The downtrend was due to competitive
pressure resulting from the entry of additional generic versions
We note that Momenta and Sandoz had inked a deal in Nov 2003
to jointly develop and commercialize a generic version of
Research and development expenses were $22 million, up from
$20 million in the year-ago quarter. The increase was
attributable to personnel costs, biosimilar program costs and
contract manufacturing expenses. General and administrative
expenses declined to $11.5 million from $12.4 million in the
year-ago quarter mainly due to lower legal fees.
Total operating expenses, excluding stock-based compensation
and net of collaborative revenue, are expected to be around $30
million per quarter in 2013. Momenta expects average net cash
usage in the range of $20 million to $24 million per quarter for
a total operating cash usage of roughly $80 to $90 million.
Apart from reporting second quarter earnings, Momenta provided
an update on its pipeline. In Jul 2013, Momenta received a
favorable ruling from the U.S. Court of Appeals for the Federal
Circuit which may allow the company to launch its generic version
Teva Pharmaceutical Industries Ltd.
Copaxone after May 2014 subject to U.S. Food and Drug
Administration (FDA) approval. Momenta's generic version of
Copaxone is currently under FDA review.
Three biosimilar products are currently under development,
namely, M923 and M834 for autoimmune and other inflammatory
indications, and M511 for the treatment of cancer. Momenta
intends to submit an Investigational New Drug (IND) application
for M923 in 2014. In addition, Momenta is working towards the
achievement of development criteria for milestone payments in
2014 for M511 and M834.
Momenta's second quarter results were disappointing with
shares declining 4.3%. However, the favorable ruling for generic
Copaxone makes Momenta's stock attractive. Momenta carries
a Zacks Rank #2 (Buy). Right now,
Questcor Pharmaceuticals Inc. (
looks more attractive with a Zacks Rank #1 (Strong Buy).
MOMENTA PHARMA (MNTA): Free Stock Analysis
NOVARTIS AG-ADR (NVS): Free Stock Analysis
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TEVA PHARM ADR (TEVA): Free Stock Analysis
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