Replies to post #146471 on Biotech Values

[DewDiligence]

Re: MNTA’s effective cash balance at 6/30/12

From today’s PR:

At June 30, 2012, Momenta had $372.3 million in cash, cash equivalents and marketable securities. This cash position excludes restricted cash of $17.5 million, which serves as collateral for a security bond related to enoxaparin legal proceedings, and $2.5 million of cash that is restricted in connection with a facility lease letter of credit.

… Product revenue of $19.4 million from enoxaparin sodium injection.

Thus, at 6/30/12, MNTA’s total cash on hand plus receivables from NVS for 2Q12 Lovenox royalties was approximately $412M, a decrease of $10M relative to 3/31/12 (#msg-77997663).

[DewDiligence]

That BAX and MNTA are now working on the third FoB in the collaboration means that BAX has exercised the option to develop compounds #3-#6, which results in a $28M milestone payment to MNTA—see #msg-70258421.

BAX's exercise of the option on compounds #3-#6 presumably means that the BAX-MNTA collaboration is producing results ahead of schedule. I wasn't expecting BAX to exercise the option on compounds #3-#6 until 2013 at the earliest (although I noted in #msg-78079512 that it could happen at any time).

[DewDiligence]

Transcript of MNTA’s 2Q12 CC:

http://seekingalpha.com/article/776011-momentas-ceo-discusses-q2-2012-results-earnings-call-transcript