Replies to post #15440 on Momenta Pharmaceuticals, Inc. (MNTA)

[jbog]

From the original press release:

Under the agreement, Mylan will make an upfront cash payment of $45 million and up to $200 million in contingent milestone payments to Momenta, with each company sharing equally in the costs and profits with respect to the products. The companies will be jointly responsible for product development and Mylan will lead worldwide commercialization efforts, with Momenta having an option to co-commercialize in a supporting commercial role, any approved products in the United States.

From the 10-K:

In addition, we and Mylan will share equally costs (including development, manufacturing, commercialization and certain legal expenses) and profits (losses) with respect to such product candidates, with Mylan funding its share of collaboration expenses incurred by us, in part, through up to six contingent early development milestone payments, totaling up to $200 million across the six product candidates.

In the original PR it was implied that Mylan would pay Momenta a future $200 in milestones, which they will, as long as it goes against its portion of its collaboration expenses. It's BS plain and simple.

Now do you see why the stock is 8 bucks?