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Mylan bets $245M on a 50/50 biosimilar development pact with Momenta
January 8, 2016 | By John Carroll
Mylan ($MYL) has stepped up to partner with Cambridge, MA-based Momenta Pharmaceuticals ($MNTA) on a portfolio of 6 biosimilars, handing over a $45 million upfront, a commitment to cover half of the costs and a promise to provide up to $200 million more in milestones. The two partners will also split any profits.
Momenta and Sandoz won a key approval for a Copaxone knockoff last summer, leaving them aligned against Teva ($TEVA) as they started out to carve out market share for themselves in the big MS market.
In the new deal, Mylan is grabbing on to a split for a biosimilar of the rheumatoid arthritis drug Orencia (abatacept), which earned $1.6 billion for Bristol-Myers Squibb in 2014. The two didn't reveal the other 5 biologics they're taking on, but Umer Raffat at Evercore ISI noted that Momenta's patent filings indicate that the remaining 5 products may include biosimilars for Rituxan, Prolia/Xgeva, Vectibix, Xolair and Campath
As Bernstein analyst Ronny Gal noted this morning, the two partners make a powerful pair in the biosimilars business. Momenta has a track record on developing biosimilars that indicates a good relationship with the FDA, and Mylan has a solid manufacturing rep that will help the partners argue for interchangeability with the branded biologic, which would give them a big advantage with payers.
Gal also noted the increased chances of seeing Mylan bid for a Momenta takeover, with a better argument to pitch on its long-term prospects as it squares off against some blockbuster franchises.
"For Mylan it adds to the long-term value an argument of the company beyond the 2017-2018 wave of launches," writes Gal. "As a biosimilar player, the company had standing with potential clients, but was at a disadvantage as it came to 'scientific standing' vs. Biogen, Novartis and Pfizer. The added capabilities of Momenta puts them, in our view, at the same scientific credibility starting point as the biotech incumbents."
The biosimilars business has been building steam for several years now. Developers are able to concentrate on a late-stage program to generate the data needed for an approval, and some of the discounts available will likely inflict heavy damage on some of the biggest biologics franchises in the business.
What's your overall thoughts on the deal and partner choice?
So what, if anything, can we infer about Mylans Gx Copaxone after this?
lol. Welp DD was close with TEVA. I guess since the cos litigate so much together they are pretty familiar with each other
i seriously doubt mnta would/could sit on it if it was ready... Maybe if it gets completed tomorrow or something they could wait for early next week
Let's not forget this is Sandoz's strategy rather than MNTAs
I tried to respond to each of my lasts post when I post the symphony count so if someone wanted to they could quickly figure out the Q total #s. I may do it at some point but quite busy this week
December Symphony Rx #s
12-24 (holiday)
NrX
Copax: 1824 Glatopa: 121 Total: 1945
TrX
Copax: 8414 Glatopa: 586 Total: 9000
12-18
NrX
Copax: 2388 Glatopa: 171 Total: 2559
TrX
Copax: 11596 Glatopa: 907 Total: 12503
12-11
NrX
Copax: 2178 Glatopa: 183 Total: 2361
TrX
Copax: 11017 Glatopa: 836 Total: 11853
12-4
NrX
Copax: 2501 Glatopa: 177 Total: 2678
TrX
Copax: 12279 Glatopa: 780 Total: 13059
MNTA EV sure is getting down there!
I concur. Volume was pretty light as well until maybe last 20m. I think it's mainly just disinterest coupled with that iffy at best sell affirmation by Maxim today
Maxim reaffirmed their $7 sell price target (I think I found where jbog works! j/k!) which was initially set in January due to SCOTUS sending 20mg patents to the CAFC.
DD or anyone else: Would this PK study perhaps be what could have been holding up MNTAs FoB partnership? Maybe they wanted to see the results for Humria PK first? Could be totally wrong here of course!
tks for the #s
what is triple witching?
have you seen ims #s yet? my guy w/ symphony access hasn't responded to me that bum! :)
nice little spike on volume to end the friday. I'll take it.
have a great weekend everyone
???
it's been pretty steady (not that that is really a good thing) according to symphony. Not sure if I can get last week's #s until this friday though
I assume there is precednece for the USPTO not agreeing with the EPO? Would you say this affects that 80% invalidation rate previously alluded to?
Glatopa uptake in the overall copaxone market has nothing to do with the docs. Glatopa is doing quite while in the 20mg market. It was TEVA's pretty darn brilliant strategy of converting patients to 40mg that is the issue for glatopa so far.
Symphony Rx #s
11-6
NrX
Copax: 2493 Glatopa: 226 Total: 2719
TrX
Copax: 10591 Glatopa: 773 Total: 11364
11-13
NrX
Copax: 2326 Glatopa: 230 Total: 2556
TrX
Copax: 10578 Glatopa: 803 Total: 11381
11-20
NrX
Copax: 2207 Glatopa: 216 Total: 2423
TrX
Copax: 11013 Glatopa: 854 Total: 11867
11-27 (holiday)
NrX
Copax: 1611 Glatopa: 180 Total: 1791
TrX
Copax: 8368 Glatopa: 675 Total: 9043
Curious ENTA trading sub 30 with the move up in the ph3
MNTA gets some decent news and JBog throws a fit a posts an article from October 16. PS I just the article in its entirety, and I still find the case pretty funny! Good luck Metropolitan Nashville Hospital Authority!
Per the just filed Form SC 13G/A looks like Blackrock has increased its stake to 7022664 shares or 10.2%
Retail is probably waiting for the sell siders to tell them what to do :P
Thanks. Curious...Trying to see what it says via bloomberg
Where'd you see that?
10-30 Symphony Rx
NrX
Copax: 2599 Glatopa: 249 Total: 2848
TrX
Copax: 10835 Glatopa: 800 Total: 11635
well, FWIW TEVA claims they'll have patent protection on thrice weekly until 2030 or whenever :P
Also, I'm pretty sure that's the day ABBV went up after the v-pak safety issue sell off
Synthon does have its copax approved in argentina (happened this year I think). Does the FDA actually reference the argentina version?
*We'll see a change in Jan (maybe that change will be Mylan or someone else being approved)
Jbog: Serious question - Do you really think Mylan will get approved at this point considering they've gone completely mum on the subject which is not very Mylan like? At this point I am significnatly more concerned with synthon getting aapproved than mylan
Well that was an odd day of trading
I think I see some too! lol
Must be Jbog loading up the boat
Perhaps but MNTA still has that "interchangeable" card which no one else seems to be playing.
Which as you mentioned via PM is $70-90m before any discount. Will be curious if they can pick up more share this Q and get to that 40% market by end of year. Guessing if they can get anyone to switch over it wouldn't happen until 2016.
Furthermore, 25-30% of the 20mg version market equals about $75m or so to Sandoz which is around the $28m base line run rate for mnta that I'm saying
MNTA still expects a partnership for biosimilars by EOY
If that were the case there wouldn't be any sales at all this Q, no? How would that $28m for MNTA not be a good baseline going forward?
Basically, if NVS had waiting until day 1 Q3 to start selling MNTA would be reporting ~$28m glatopa revenue right now and the stock would probably be over $20 :P
Woof woof. In the context of the $28.2m soft rate it isn't as miserable as it sounds. Will be curious to see what's said on the CC. At least they didn't use the ATM!
Maybe they announce it tomorrow. It is getting close to their EOY deadline..
Regarding what happens tomorrow, I'm guessing they have around $20m rev on Glatopa, which of course per yahoo will be a miss (and something investors seem to care about).
What about judging from yesterday's price action :P
Anyone who pays attention should have a pretty good sense of what to expect tomorrow already.