CAMBRIDGE, Mass., Nov. 8 /PRNewswire-FirstCall/ -- Momenta Pharmaceuticals, Inc. , announced today that its Board of Directors has approved a Rights Agreement pursuant to which the Company’s stockholders will receive preferred stock purchase rights. The Rights Agreement, which is similar to plans adopted by many public companies, is designed to protect the long-term value of the stockholders’ investment and was not adopted in response to any current third-party attempt to acquire the Company.
One right will be distributed as a non-taxable dividend on each outstanding share of the Company’s common stock as of November 18, 2005. The rights will automatically trade with the underlying common stock and will not be immediately exercisable. Subject to the terms and conditions of the Rights Agreement, the rights will only become exercisable if a person or group acquires beneficial ownership of, or commences an offer for, 20 percent or more of Momenta’s common stock other than in a transaction approved by a specified percentage of Momenta’s Board of Directors. Until a right is exercised, the holder thereof, as such, will have no rights as a stockholder of Momenta, including the right to vote or to receive dividends.
If the rights become exercisable, the type and amount of securities receivable upon exercise would depend on the circumstances at the time of exercise. Initially, each right would allow the holder to purchase one one- thousandth of a share of a new series of preferred stock, Series A Junior Participating Preferred Stock, at an initial purchase price of $125.00. The rights expire upon the close of business on November 6, 2008. Further details about the Rights Agreement will be contained in a Form 8-K to be filed today by Momenta and in a letter that will be mailed to all stockholders of record following the record date.
About Momenta
Momenta Pharmaceuticals, Inc. is a biotechnology company specializing in the sequencing, or detailed structural analysis, and design of complex sugars for the development of novel drugs, the improvement of existing drugs and the discovery of new biological processes. Momenta is also utilizing its characterization technology to create technology-enabled generic versions of sugar-based and complex drug products. Based on its understanding of complex sugars, Momenta has created a diversified pipeline of near-term product opportunities, novel development products and discovery candidates. Momenta was founded in 2001 and is headquartered in Cambridge, MA.
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Contact: Michael A. Lawless Momenta Pharmaceuticals, Inc. 617-395-5189
Momenta Pharmaceuticals, Inc.
CONTACT: Michael A. Lawless of Momenta Pharmaceuticals, Inc.,+1-617-395-5189
Web site: http://www.momentapharma.com//