Momenta Pharmaceuticals, Inc. (MNTA)

[DewDiligence]

Re: MNTA’s liquidity and cash usage (corrected and expanded)

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

As of 5/1/15, MNTA has a pro forma cash balance of approximately $237M less whatever has been burned during 2Q15 to date. The $237M comes from the $198.7M cash balance at 3/31/15, $28.4M raised under the old and new ATM facilities during Apr 2015 (as detailed in the 1Q15 PR), and a $10M milestone payment from NVS that MNTA earned for FDA approval of Glatopa. (The $237M figure excludes $20.7M of restricted cash, as detailed in the footnote below.*)

Cash-burn guidance for 2Q14 is $28-32M, assuming no Glatopa launch and excluding the items counted in the above paragraph; this leaves a pro forma cash balance of about $207M at 6/30/15 if there is no additional use of the new ATM during May and June.

Inasmuch as the latest possible launch of Glatopa is 9/1/15 (when Teva’s ‘808 patent expires) and MNTA earns a second $10M milestone payment from NVS for the Glatopa launch, 3Q15 should be cash-flow neutral at worst, and 4Q14 will likely be cash-flow positive.

All told, MNTA would seem to be in excellent shape financially, and it’s hard to see why large additional amounts would need to be drawn from the new ATM.

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