MNTA’s PR says the money may be used for “…potential acquisitions of, or investments in, companies, products and technologies that complement its business.” On the one hand, this is boilerplate language that may mean nothing; on the other hand, MNTA was already well-funded, so it may mean something after all. Before today’s deal, MNTA already had about seven quarters of cash on hand due to the fact that NVS pays all development and commercialization expenses on the generic-Lovenox program (#msg-33301993).
What is not immediately clear is which companies, if any, could be acquired that would complement MNTA’s business or technology. At one time, I might have said that GTCB would’ve been a complementary purchase, but it’s hard to make a case for that now, IMO.
›Momenta Pharmaceuticals to Raise $24.1 Million Through Registered Direct Offering
Friday December 12, 2008, 9:17 am EST
CAMBRIDGE, Mass., Dec. 12, 2008 (GLOBE NEWSWIRE) -- Momenta Pharmaceuticals, Inc. (NasdaqGM: MNTA ), a biotechnology company specializing in the characterization and engineering of complex drugs, today announced that it has received commitments from selected investors to purchase 2.8 million shares of its common stock at a purchase price of $9.00 per share, for gross proceeds of approximately $25.2 million. Momenta estimates that net proceeds from the offering will be approximately $24.1 million, after deducting placement agent fees and estimated offering expenses. Momenta currently intends to use the net proceeds from this offering for general corporate and working capital purposes, including research and development expenses, manufacturing expenses, clinical trial costs, general and administrative expenses, and potential acquisitions of, or investments in, companies, products and technologies that complement its business.
The closing of the offering is expected to take place on December 16, 2008, subject to customary closing conditions. Leerink Swann LLC served as the sole placement agent for the offering. Copies of the final prospectus relating to this offering may be obtained at the Securities and Exchange Commission web site at http://www.sec.gov, or from Momenta Pharmaceuticals, Inc., 675 West Kendall Street, Cambridge, MA 02142, Attention: General Counsel.
The shares of common stock described above are being offered by Momenta pursuant to a registration statement previously filed [i.e. a shelf registration] and declared effective by the Securities and Exchange Commission.‹
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