Replies to post #18142 on Momenta Pharmaceuticals, Inc. (MNTA)

[DewDiligence]

AMGN plainly spent more on the Humira litigation than MNTA can afford. We can get some idea by looking at the “Other” operating expenses line (where legal expenses go) on AMGN’s 3Q17 income statement: https://www.sec.gov/Archives/edgar/data/318154/000031815417000027/amgn-2017930x10q.htm#s931823CDC31C505483EF191450576C45 .

2017 year-to-date (i.e. 9-month) “other” expenses were $347M, versus $121M in the comparable 2016 period. It’s reasonable to surmise that most of the $236M increase in this line item from 2016 to 2017 is attributable to the ABBV litigation.

[Bickema]

It seems 40mg Copax triggered a domino effect that has led MNTA to this scenario, no 40mg rev to litigate ABBV in court. 40mg revenue plus a strong partner may have been enough to litigate and manage cash burn but without 40mg rev, a partnership alone for M923 is not enough to sustain expenses.

Its definitely a smart move to put the company up fore sale now with a huge cash pile and M923 unpartnered and not in ligation.