Momenta Pharmaceuticals, Inc. (MNTA)

[DewDiligence]

Re: MNTA’s liquidity and cash usage

http://finance.yahoo.com/news/momenta-pharmaceuticals-reports-first-quarter-120000177.html

MNTA has a current pro forma cash balance of approximately $232M less whatever has been burned during 2Q15 to date. This figure excludes $20.7M* of restricted cash, but it includes approximately $23M raised during April under the old and new ATM facilities and the $10M milestone payment from NVS that MNTA earned for FDA approval of Glatopa.

Cash-burn guidance for 2Q14 is $28-32M (assuming no Glatopa launch, excluding the items counted above, and excluding any additional use of the new ATM facility), which leaves a pro forma cash balance of about $202M at 6/30/15.

Inasmuch as the latest possible launch of Glatopa is 9/1/15 (when Teva’s ‘808 patent expires), 3Q15 should be cash-flow positive or at worst neutral. Also, MNTA earns a second $10M milestone payment from NVS upon Glatopa’s launch.

*$17.5M for the bond in the Lovenox-patent case and $3.2M underpinning leased facilities.