News for 'MNTA' - (Momenta Pharmaceuticals Announces That Launch of Authorized Generic Lovenox(R) Triggers Change in Collaboration Terms)
CAMBRIDGE, Mass., Oct 24, 2011 (GlobeNewswire via COMTEX) -- Momenta Pharmaceuticals, Inc. (Nasdaq:MNTA), a biotechnology company specializing in the characterization and engineering of complex drugs, today announced that Sandoz has confirmed the launch of an authorized generic version of Lovenox in the fourth quarter of 2011.
Under the terms of Momenta's 2003 Collaboration and License Agreement with Sandoz, upon the launch of an authorized generic Lovenox, for the remainder of the product year ending June 30, 2012, Sandoz is obligated to pay Momenta a 10-12% royalty on its net sales of enoxaparin sodium until the contractual profits from those net sales reaches a prorated contractual amount of approximately $99.1 million. Thereafter, provided that no other third party is marketing a generic Lovenox, Sandoz is obligated to pay Momenta 45% of contractual profits on net sales through the remainder of the product year ending June 30, 2012.
Going forward, if the authorized generic is the only marketed generic Lovenox, at the start of each subsequent product year, Sandoz is obligated to pay to Momenta a 10-12% royalty on net sales of enoxaparin sodium until the contractual profit reaches $135.0 million. Thereafter, for the balance of the product year, Sandoz is obligated to pay Momenta a 45% profit share.
"It is important to note that the "hybrid" royalty/profit share arrangement applies only as long as no other third party is marketing an interchangeable generic version of Lovenox," commented Richard P. Shea, Chief Financial Officer of Momenta. "Should an additional party commence marketing we would shift from the hybrid economics to a straight royalty of 10-12% on Sandoz' net sales with no profit share provision."
About Momenta
Momenta Pharmaceuticals is a biotechnology company specializing in the detailed structural analysis of complex mixture drugs. Momenta is applying its technology to the development of generic versions of complex drug products, as well as to the discovery and development of novel drugs. Momenta was founded in 2001 based on technology initially developed at Massachusetts Institute of Technology and is headquartered in Cambridge, MA.
To receive additional information about Momenta, please visit the website at www.momentapharma.com, which does not form a part of this press release.
Forward Looking Statements
Statements in this press release regarding the Company's revenue for sales of enoxaparin, and whether or not third parties are marketing generic enoxaparin products, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as "anticipate," "believe," "could," "could increase the likelihood," "hope," "target," "project," "goals," "potential,"
"predict," "might," "estimate," "expect," "intend," "is planned," "may,"
"should," "will," "will enable," "would be expected," "look forward," "may provide," "would" or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors referred to in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 filed with the Securities and Exchange Commission under the section "Risk Factors," as well as other documents that may be filed by Momenta from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, the Company's actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. Momenta is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Our logo, trademarks, and service marks are the property of Momenta Pharmaceuticals, Inc. All other trade names, trademarks, or service marks are property of their respective owners.
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SOURCE: Momenta Pharmaceuticals
By Staff
CONTACT: CONTACT: Beverly Holley
Director, Investor Relations
bholley@momentapharma.com
617-395-5189
