CAMBRIDGE, Mass., July 25 /PRNewswire-FirstCall/ -- Momenta Pharmaceuticals, Inc. , a biotechnology company specializing in the characterization and engineering of complex drugs, today announced an exclusive collaboration with Sandoz, the generics business of Novartis, to develop four follow-on and complex generic versions of previously approved recombinant biotechnology and complex drugs.
As part of the collaboration, Sandoz will make an initial payment of $75 million to Momenta for the purchase of approximately 4.7 million shares at a price of $15.93 per share, a 30% premium to the trailing 30-day average. Momenta is also eligible to receive up to $188 million in additional payments if all milestones are achieved for the four product candidates.
The collaboration will include one late-stage compound from Momenta’s pipeline and two late-stage compounds from Sandoz.
The collaboration also expands the companies’ existing U.S. partnership on M-Enoxaparin, which was established in November 2003, to the European Union. M-Enoxaparin is a technology-enabled generic version of Lovenox(R), a low molecular weight heparin indicated for use in treating deep vein thrombosis (DVT) and several cardiovascular conditions. In August 2005, an Abbreviated New Drug Application (ANDA) was submitted to the U.S. Food and Drug Administration seeking marketing approval for M-Enoxaparin.
The two companies will jointly develop, manufacture and commercialize all of these candidates, and share the profits from the sales of all products under separate profit share arrangements for each product, including an equal profit split specifically on the product candidate from Momenta’s pipeline.
“Complex generics and follow-on proteins are one of the most rapidly evolving areas of product development in the pharmaceutical industry,” said Alan Crane, CEO of Momenta. “With this partnership, we believe we will be well positioned to capitalize on this untapped potential and realize significant product value. Sandoz’ decision to partner with Momenta across a spectrum of products highlights the broad potential of our analytic technology and the role that it can play in helping to set the standard for bringing well-characterized complex generic and follow-on protein products to market.”
The product candidates in the collaboration will all leverage Momenta’s characterization technology, which enables the detailed chemical sequencing and analysis of complex mixtures. Momenta’s goal is to apply its technology to create generic and follow-on versions of complex drugs and biologics, which have been difficult to thoroughly characterize. The collaboration will also leverage the global capabilities and infrastructure of Sandoz for developing, manufacturing, and marketing complex drugs.
The purchase of Momenta shares and the collaboration are subject to customary regulatory reviews and approvals, including antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act.
Conference Call Information
Momenta will host a conference call on July 25, 2006 at 10:30 am EDT to discuss this collaboration. To access the call, please dial 800-435-1261 (domestic) or 617-614-4076 (international) prior to the scheduled conference call time and provide the access code 91534008. A replay of the call will be available approximately two hours after the call and will be accessible through July 31, 2006. To access the replay, please dial 888-286-8010 (domestic) or 617-801-6888 (international) and provide the access code 84803954.
A live audio webcast of the call will be available on the “Investors” section of the Company’s website, http://www.momentapharma.com. Please go to the site at least 15 minutes prior to the call in order to register, download, and install any necessary software. An archived version of the webcast will be posted on the Momenta website approximately two hours after the call and will be available through August 25, 2006.
About Momenta
Momenta Pharmaceuticals is a biotechnology company specializing in the detailed characterization and engineering of complex sugars. Momenta is applying its technology to create technology-enabled generic versions of sugar-based and other complex drug products, develop improved versions of existing drugs, and discover novel drugs and new biological processes. The Company’s most advanced product candidate is M-Enoxaparin, a technology- enabled generic version of Lovenox(R). An ANDA was filed for M-Enoxaparin in August 2005 in collaboration with Sandoz, the generics division of Novartis AG. Momenta has multiple technology-enabled generic products in its pipeline. Momenta’s first improved drug candidate is M118, a rationally engineered anticoagulant specifically designed for acute coronary syndromes. The Company is also developing novel drug candidates through its discovery effort focused on understanding novel sugar-based biological processes. Momenta was founded in 2001 based on technology initially developed at Massachusetts Institute of Technology and is headquartered in Cambridge, MA.
To receive additional information about Momenta, please visit the website at http://www.momentapharma.com, which does not form a part of this press release.
Forward Looking Statements
Statements in this press release regarding Momenta Pharmaceuticals Inc.'s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to the Company’s sale of common stock to Sandoz and the Company’s collaboration with Sandoz, including future development efforts thereunder, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Momenta’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including those factors contained in Momenta’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006 filed with the Securities and Exchange Commission under the section “Risk Factors,” as well as other documents that may be filed by Momenta from time to time with the Securities and Exchange Commission. Forward-looking statements include statements regarding Momenta’s expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or similar words. Momenta assumes no obligations to update the information included in this press release.
Our logo, trademarks, and service marks are the property of Momenta Pharmaceuticals, Inc. All other trade names, trademarks, or service marks are property of their respective owners.
Momenta Contacts: Mike Lawless Investor Relations 617-395-5189 Valerie Threlfall Public Relations 617-395-5116 Sandoz Contacts: Kurt Leidner Sandoz Communications +49 8024 476 2591 +49 8024 476 2577 kurt.leidner@sandoz.com John Gilardi Novartis Global Media Relations +41 61 324 3018 +41 61 324 2200 john.gilardi@novartis.com
Momenta Pharmaceuticals, Inc.
CONTACT: Mike Lawless, Investor Relations for Momenta, +1-617-395-5189, orValerie Threlfall, Public Relations for Momenta, +1-617-395-5116; or KurtLeidner, Sandoz Communications, +49-8024-476-2591, or +49-8024-476-2577,kurt.leidner@sandoz.com, or John Gilardi of Novartis Global Media Relationsfor Sandoz, +41-61-324-3018, or +41-61-324-2200, john.gilardi@novartis.com
Web site: http://www.momentapharma.com/
