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Momenta Pharmaceuticals Announces Change of Collaboration Terms on Launch of Generic Lovenox; Shares Plunge 10.8%


BY Midnight Trader
— 9:29 AM ET 10/25/2011
09:29 AM EDT, 10/25/2011 (MidnightTrader) Momenta Pharmaceuticals (MNTA) is down 10.82% to $12.45 a share after it today announced that its partner 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.

Price: 12.45, Change: -1.51, Percent Change: -10.82

MNTA//MOMENTA PHARMACEUTICALS, INC.
Last [Tick] $12.08[-]
Change $-1.88
% Change -13.47%
Bid $12.07
Bid Size 1
Ask $12.08
Ask Size 2
Open $12.20
Volume 161,532
Day High $12.28
Day Low $11.71