Momenta Pharmaceuticals, Inc. (MNTA)

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Momenta Pharmaceuticals Reports $1.18 Earnings per Share for the Third Quarter of 2011

CAMBRIDGE, Mass., Nov. 7, 2011 (GLOBE NEWSWIRE) -- Momenta Pharmaceuticals, Inc. (Nasdaq:MNTA), a biotechnology company specializing in the characterization and engineering of complex drugs, today announced its financial results for the quarter ended September 30, 2011.

For the third quarter of 2011, the Company reported a net income of $60.3 million, or $1.18 per diluted share, compared with a net income of $32.1 million, or $0.70 per diluted share, for the same period last year. At September 30, 2011, the Company had cash, cash equivalents, and marketable securities of $308.0 million, compared with $152.8 million at December 31, 2010.

The Company noted the following highlights:

Revenue for the third quarter 2011 was $87.9 million.
The Company earned a $10.0 million milestone payment from Sandoz in recognition of the one year anniversary of the launch of generic enoxaparin.
A preliminary injunction preventing Amphastar Pharmaceuticals, Inc., Watson Pharmaceuticals, Inc. and their subsidiaries from launching a generic version of Lovenox was granted on October 28, 2011. The preliminary injunction has been appealed and a motion to dissolve or stay the injunction has been filed with the Court.
The launch of an authorized generic Lovenox in October 2011 triggered a change in the contract terms with our collaboration partner, Sandoz, from a profit share to a combination of a royalty and profit share.
The patent infringement trial in the suit brought by Teva Pharmaceuticals against Momenta and Sandoz concerning our generic Copaxone has concluded. No decision has been issued.
At the quarter's end, the Company had a cash balance of $308 million and $85 million in accounts receivable.
"The third quarter of 2011 was another outstanding quarter for Momenta. We added over $60 million to our balance sheet," commented Craig A. Wheeler, President and Chief Executive Officer. "Sales of enoxaparin continued to be strong. Even with the launch of an authorized generic enoxaparin, the issuance of a preliminary injunction preventing the launch of a competing enoxaparin in the near term by Amphastar/Watson offers us the opportunity to have a solid base for future strong financial performance," he concluded.

Third Quarter 2011 Financial Results

Revenue for the third quarter of 2011 was $87.9 million, compared to $52.0 million for the same period last year. Our enoxaparin product revenue in the third quarter of 2010 was reduced by $35 million, representing our contractual repayment to Sandoz of pre-launch enoxaparin development expenses. Revenue for the third quarter of 2011 includes a $10.0 million commercial milestone earned by maintaining sole generic status for 12 months following the launch of enoxaparin sodium on July 23, 2010.

Research and development expenses for the third quarter of 2011 were $16.3 million, compared to $12.5 million for the same period last year. The increase in research and development expenses principally resulted from increased process development, manufacturing and third-party research costs and laboratory expenses in support of our development programs, principally our M356 and HSPG programs, and an increase in amortization expense related to an intangible asset capitalized in the third quarter of 2011.

General and administrative expenses for the third quarter of 2011 totaled $11.5 million, compared with $7.3 million for the same period last year. The increase in general and administrative expenses was primarily due to an increase in royalties payable to Massachusetts Institute of Technology due to increased enoxaparin product revenues and milestones, and increased legal expenses.

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