Biotech Values

[DewDiligence]

MNTA Reports 2Q11 Results

[MNTA’s quarterly financial announcements are anticlimactic insofar as NVS reports sales of generic Lovenox before MNTA reports its own financials, allowing investors to estimate MNTA’s EPS within a fairly tight band.

2Q11 EPS was $1.26 on a Lovenox profit share of $83.8M. Since NVS reported 2Q11 Lovenox sales of $284M (#msg-65315981) and MNTA’s Lovenox profit share is 45%, we know that NVS’ 2Q11 operating margin for Lovenox was 66% ([$83.8M/0.45]/$284M). MNTA ended 2Q11 with $331M in cash and receivables.]

http://ih.advfn.com/p.php?pid=nmona&article=48694628&symbol=MNTA

›08/04/2011 8:00AM ET

CAMBRIDGE, Mass., Aug. 4, 2011 (GLOBE NEWSWIRE) -- Momenta Pharmaceuticals, Inc. (Nasdaq:MNTA), a biotechnology company specializing in the characterization and engineering of complex drugs, today reported its financial results for the quarter ended June 30, 2011.

For the second quarter of 2011, the Company reported a net income of $64.3 million, or $1.26 per diluted share, compared to a net loss of $15.0 million, or $0.34 per share, for the same period in 2010. For the six months ended June 30, 2011, the Company reported a net income of $121.3 million, or $2.39 per diluted share, compared to a net loss of $31.1 million, or $0.71 per share, for the same period in 2010. At June 30, 2011, the Company had cash, cash equivalents, and marketable securities of $246.3 million, compared to $152.8 million at December 31, 2010.

The Company noted the following highlights:

• On July 23, 2011 Momenta/Sandoz marked a full year as the sole provider of generic enoxaparin.

• Revenue for the second quarter 2011 was $87.5 million with an EPS of $1.26, fully diluted.

• The Company has earned over $256 million in profit share revenue from sales of enoxaparin to date.

• At the quarter's end the Company had a cash balance of $246 million and $85 million in accounts receivable.

"We had a very strong quarter," stated Craig A. Wheeler, President and Chief Executive Officer. "On July 23rd we and Sandoz marked a full year as the sole provider of generic enoxaparin, and through June 30, 2011 we have earned over $256 million in profit share revenue from enoxaparin," he continued. "At the same time, we are providing patients with more affordable medicine, which is a very rewarding aspect of our business."

Second Quarter 2011 Financial Results

Revenue for the second quarter of 2011 was $87.5 million, compared to $2.8 million for the same period in 2010. For the six months ended June 30, 2011, revenues were $165.7 million, compared to $6.5 million for the same period in 2010. The increase in revenue in both periods was due to profit-share on Sandoz' sales of enoxaparin sodium injection which received FDA marketing approval in July of 2010. At June 30, 2011, the receivable for the second quarter enoxaparin profit share was $83.8 million.

Research and development expenses for the second quarter of 2011 were $14.2 million, compared to $11.8 million for the same period in 2010. For the six months ended June 30, 2011, research and development expenses were $27.1 million, compared to $24.0 million for the same period in 2010. The increase in research and development expenses in both periods principally resulted from increases in process development, manufacturing and third-party research costs in support of its development programs, principally the Company's M356 program.

General and administrative expenses for the second quarter of 2011 totaled $9.2 million, compared with $6.0 million for the same period in 2010. For the six months ended June 30, 2011, general and administrative expenses were $17.5 million, compared with $13.4 million for the same period in 2010. The increase in general and administrative expenses for both periods was primarily due to royalties payable to Massachusetts Institute of Technology associated with the Company's product revenue on Sandoz' sales of enoxaparin sodium injection and an increase in legal and consulting activities.

Conference Call Information

Management will host a conference call on Thursday, August 4, 2011 at 10:00 am ET to discuss these results and provide an update on the Company. To access the call, please dial [phone] (domestic) or [phone] (international) prior to the scheduled conference call time and provide the access code 85283127. A replay of the call will be available approximately two hours after the conclusion of the call and will be accessible through August 19, 2011. To access the replay, please dial [phone] (domestic) or [phone] (international) and provide the access code 85283127.

A live audio webcast of the call will be available on the "Investors" section of the Company's website, www.momentapharma.com. Please go to the site at least 15 minutes prior to the call in order to register, download, and install any necessary software. An archived version of the webcast will be posted on the Momenta website approximately two hours after the call and will be available through August 19, 2011.‹