Biotech Values

[DewDiligence]

>MNTA – Seven quarters of cash is ok if your burn rate is constant but of course with a probable "rollout" sitting in that same period it might [be that] seven quarters won't be enough.<

Not a problem because Novartis pays the freight. Here’s MNTA’s 11/18/03 press release with the relevant section in bold-face type:

http://www.momentapharma.com/press_releases/momenta_sandoz.htm

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Momenta Pharmaceuticals and Sandoz, Inc. Form Strategic Alliance for the Application of Breakthrough Sugar Technology to Product Development

CAMBRIDGE, MA and PRINCETON, NJ — November 18, 2003 – Momenta Pharmaceuticals, Inc., a leader in applying advanced technology for complex sugars to discover and develop pharmaceutical products, and Sandoz, Inc., a Novartis company (NYSE: NVS), today announced a strategic alliance covering joint product development and commercialization in the area of complex pharmaceutical products. The collaboration will apply Momenta’s novel technological capabilities related to complex sugars and the leadership of Sandoz in the generic pharmaceuticals industry to pursue the joint goal of commercializing products.

Under the terms of the agreement, Sandoz and Momenta will jointly manage product development and commercialization. Momenta will receive a profit share based on product sales if the parties are successful in their commercialization strategy [“successful” means the parties obtain FDA approval for the only generic Lovenox in the US]. In addition, Sandoz will pay development and commercialization costs and make certain other payments to Momenta.

“This partnership offers Momenta the potential to realize significant revenue at a very early stage in our company’s development. The success of near-term product opportunities will enable us to advance our mission of developing innovative novel therapeutics, addressing a wide range of clinical needs, while also improving existing marketed therapeutics,” said Alan Crane, Chairman and CEO of Momenta. “With the industry leadership of Sandoz, this partnership reinforces our vision of building value through the highest quality collaborations and validates Momenta’s ability to leverage its scientific expertise in complex sugars to bring important drugs to the marketplace.”

“We’re pleased to partner with Momenta, a company that has demonstrated strong capabilities in the area of complex pharmaceuticals. Working together, we will be able to provide alternative pharmaceutical solutions for patients,” said John Sedor, President and CEO of Geneva Pharmaceuticals, becoming Sandoz Inc. on Dec. 1, 2003.

About Momenta

Momenta Pharmaceuticals, Inc. is a leader in applying breakthroughs in understanding the chemistry and biology of complex sugars to the discovery, development, and commercialization of drug products. In its short history, Momenta has built a diversified pipeline of product candidates comprised of novel therapeutics and the application of its technology to existing products and molecules. Momenta’s proprietary technology provides a more complete understanding of disease and drug action by enabling high throughput sequencing, precise chemical structure characterization, and engineering of complex sugars and glycosylated biomolecules. Founded in 2001, Momenta is headquartered in Cambridge, MA. Additional information is available on the company’s website, www.momentapharma.com.

About Sandoz

Sandoz is one of the largest prescription generic pharmaceutical companies in the world. Sandoz products range across many therapeutic drug categories including anti-infectives, anti-arthritics, cardiovasculars, gastrointestinal agents and psychotherapeutics. Sandoz is a Novartis company (NYSE: NVS), a world leader in healthcare with core businesses in pharmaceuticals, consumer health, generics, eye-care and animal health. In 2002, Novartis’s businesses achieved sales of CHF 32.4 billion (USD 20.9 billion) and a net income of CHF 7.3 billion (USD 4.7 billion). Novartis invested approximately CHF 4.3 billion (USD 2.8 billion) in R&D. Headquartered in Basel, Switzerland, Novartis Group companies employ about 72,900 people and operate in more than 140 countries around the world. For more information on Novartis, http://www.novartis.com. For more information about Sandoz, please see our website at http://www.sandoz.com. Geneva Pharmaceuticals in the U.S. becomes Sandoz Inc. effective Dec. 1, 2003.
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