Momenta Pharmaceuticals, Inc. (Nasdaq:MNTA) today reported its
financial results for the second quarter ended June 30, 2014.
For the second quarter of 2014, the company reported a net loss
of $(26.2) million, or $(0.51) per share, compared to a net loss of
$(28.8) million, or $(0.57) per share for the same period in 2013.
At June 30, 2014, the company had cash, cash equivalents, and
marketable securities of $202.3 million.
"Following the Supreme Court's decision to review the Federal
Circuit ruling in our generic Copaxone litigation, we adjusted our
operations and re-focused on executing towards our critical 2014
milestones," said Craig A. Wheeler, President and Chief Executive
Officer of Momenta Pharmaceuticals.
"We took action to ensure our portfolio would continue moving
forward amidst the financial uncertainty of the Copaxone
situation," continued Mr. Wheeler. "We are working towards several
milestones that are indicative of our operational progress: we are
advancing toward a regulatory submission of our lead biosimilars
program – M923 – by the end of 2014, and expect to achieve a
development milestone on M834 in the second half of 2014 as well.
In addition, we expect to complete the Part A study of our
necuparanib (M402) program shortly, with data available later this
year and plan to initiate the Part B study by the end of the
year."
Second Quarter Highlights and Recent Events
Complex Generics: M356, generic version
of Copaxone (Glatiramer Acetate Injection)
- The ANDA for M356 continues to be under active review by the
U.S. FDA. The company and its collaboration partner, Sandoz, are
preparing for the potential launch of this generic in 2014, pending
U.S. FDA approval.
- On March 31, 2014, the Supreme Court of the United States
granted Teva's request for certiorari in our generic Copaxone
patent litigation. The Supreme Court hearing date for the case has
been set for October 15, 2014.
- On May 14, 2014, the U.S. District Court for the District of
Columbia denied Teva's request to overturn the FDA's denial of its
sixth Citizens Petition that sought to prevent generic Copaxone
ANDA approval and dismissed the suit.
Enoxaparin Sodium Injection
- In the second quarter of 2014, Momenta earned $5.7 million in
product revenues from enoxaparin sodium injection based on Sandoz
reported net sales of $54.2 million.
Biosimilar and Potentially Interchangeable
Biologics:
- Momenta continues to progress its biosimilars portfolio. M923
and M834 are biosimilars for branded biologics indicated for
certain autoimmune and inflammatory diseases. Under its global
biosimilar collaboration with Baxter, Momenta expects to achieve
milestones with an aggregate value of $19 million in the second
half of 2014 for products M923 and M834. Momenta and Baxter are
pursuing a global regulatory strategy for M923 and expect to submit
a clinical trial application towards the end of 2014, which would
allow clinical initiation in Europe. For M834, the company expects
to achieve a pre-defined development milestone in the second half
of 2014.
- Baxter's option to select up to three additional biosimilars to
be included in the collaboration expires in February 2015.
- Momenta has made the portfolio decision to discontinue
development efforts on M511, a biosimilar program indicated for
oncology. Resources previously allocated to M511 will be
reallocated to Momenta's earlier-stage biosimilar program portfolio
and to broadening Momenta's biosimilars technology base.
Novel Drug: Necuparanib (M402 novel
oncology candidate)
- Momenta expects to complete the Part A dose escalation
component of the Phase 1/2 trial evaluating necuparanib in
combination with Abraxane® (nab-paclitaxel) and gemcitabine in
patients with advanced metastatic pancreatic cancer, and to report
clinical data from Part A in the second half of 2014.
- The company plans to initiate Part B of the study by the end of
2014. Part B will be a randomized, controlled study to evaluate the
antitumor activity of necuparanib in combination with Abraxane plus
gemcitabine, versus Abraxane plus gemcitabine alone.
Sialylation Technology and Fc Biology Research
In 2014, Momenta continues to advance its research programs by
seeking to identify an Fc-containing recombinant product candidate
by the end of the year. The company is also investigating
opportunities to partner further development of a sialylated
plasma-derived IVIG.
Second Quarter 2014 Financial Results Total
revenues for the second quarter of 2014 were $11.0 million
(including enoxaparin product revenue of $5.7 million), compared to
$4.3 million (including enoxaparin product revenue of $1.6 million)
for the same period in 2013. Sandoz reported second quarter 2014
enoxaparin net sales of $54.2 million. The increase in enoxaparin
product revenue of $4.1 million from the 2013 period to the 2014
period is primarily due to a lower annual claw-back adjustment
related to enoxaparin development and legal expenses.
Collaborative research and development revenue for the second
quarter of 2014 was $5.3 million, compared to $2.7 million in the
same quarter last year. The increase of $2.6 million in
collaborative revenue between comparable periods is due to
reimbursable M923 expenses.
Research and development expenses for the second quarter of 2014
were $26.1 million, compared to $22.0 million for the same period
in 2013. The increase of $4.1 million from the 2013 period to the
2014 period resulted from increases of: $2.5 million in process
development and third-party contract research costs related to our
biosimilars and novel drugs programs; $1.2 million in facility
related costs due to additional subleased laboratory and office
space; and $0.8 million in personnel and related costs associated
with our headcount growth to support our programs. These increases
were offset by a $0.4 million decrease in biosimilars consulting
fees.
General and administrative expenses for the second quarter ended
June 30, 2014, were $11.2 million, compared with $11.5 million for
the same period in 2013. The decrease of $0.3 million in the second
quarter of 2014 was primarily due to a decrease in legal fees.
At June 30, 2014, Momenta had $202.3 million in cash, cash
equivalents and marketable securities. This cash position excludes
restricted cash of $20.7 million, of which $17.5 million is
reserved as collateral for a security bond related to enoxaparin
legal proceedings, and $3.2 million for letters of credit related
to the company's two leased facilities.
Financial Guidance Today, Momenta updated its
financial guidance for the second half of 2014: Momenta expects
total operating expenses, excluding stock-based compensation and
net of collaborative revenues, to average $28 to $30 million per
quarter. Momenta is projecting that its net cash usage, excluding
revenue from the potential launch of M356, will average
approximately $26 million per quarter. Cash burn for the fourth
quarter of 2014 is expected to be partially offset by $19 million
from milestone payments earned under the Baxter collaboration,
although all or a portion of these milestone payments could be
received in the first quarter of 2015.
Conference Call Information Management will
host a conference call and webcast today at 10:00 am ET to discuss
these results and provide an update on the company. A live webcast
of the conference call may be accessed on the "Investors" section
of the company's website, www.momentapharma.com. Please go to the
site at least 15 minutes prior to the call in order to register,
download, and install any necessary software. An archived version
of the webcast will be posted on the Momenta website approximately
two hours after the call and will be available through August 14,
2014.
To access the call you may also dial (877) 224-9084 (domestic)
or (720) 545-0022 (international) prior to the scheduled conference
call time and provide the access code 71494254. A replay of the
call will be available approximately two hours after the conclusion
of the call and will be accessible through August 14, 2014. To
access the replay, please dial (855) 859-2056 (domestic) or (404)
537-3406 (international) and provide the access code 71494254.
About Momenta Momenta Pharmaceuticals is a
biotechnology company specializing in the detailed structural
analysis of complex mixture drugs and is headquartered in
Cambridge, MA. Momenta is applying its technology to the
development of generic versions of complex drugs, biosimilar and
potentially interchangeable biologics, and to the discovery and
development of novel products.
To receive additional information about Momenta, please visit
the website at www.momentapharma.com, which does not form a part of
this press release.
Forward Looking Statements Statements in this
press release regarding management's future expectations, beliefs,
intentions, goals, strategies, plans or prospects constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. They include the
Company's revenue, expenses, potential approval and launch of M356,
timing and expectations regarding litigation related to M356,
anticipated achievement of development milestones, including
milestones under the Baxter collaboration in 2014, forecasted cash
usage and burn, potential equity financing and use of proceeds, and
expected results of operations, such as our expected product
development and collaboration milestones, and timing for clinical
and non-clinical trial results, our plans for future research and
development investment, and our other product development plans and
expectations. Forward-looking statements can be identified by
terminology such as "anticipate," "believe," "could," "could
increase the likelihood," "hope," "target," "project," "goals,"
"potential," "predict," "might," "estimate," "expect," "intend,"
"is planned," "may," "should," "will," "will enable," "would be
expected," "look forward," "may provide," "would" or similar terms,
variations of such terms or the negative of those terms. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors referred to in the company's
Quarterly Report on Form 10-Q filed on May 6, 2014 filed with the
Securities and Exchange Commission under the section "Risk
Factors," as well as other documents that may be filed by Momenta
from time to time with the Securities and Exchange Commission. As a
result of such risks, uncertainties and factors, the Company's
actual results may differ materially from any future results,
performance or achievements discussed in or implied by the
forward-looking statements contained herein. Momenta is providing
the information in this press release as of this date and assumes
no obligations to update the information included in this press
release or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Our logo, trademarks, and service marks are the property of
Momenta Pharmaceuticals, Inc. All other trade names, trademarks, or
service marks are property of their respective owners.
MOMENTA
PHARMACEUTICALS, INC. |
Unaudited Condensed
Consolidated Balance Sheets |
(in thousands) |
|
|
|
|
June 30, 2014 |
December 31,
2013 |
Assets |
|
|
Cash and marketable securities |
$ 202,276 |
$ 245,682 |
Accounts receivable |
8,568 |
13,095 |
Restricted cash |
20,719 |
20,719 |
Other assets |
36,125 |
37,319 |
Total assets |
$ 267,688 |
$ 316,815 |
Liabilities and Stockholders'
Equity |
|
|
Current liabilities |
$ 19,553 |
$ 21,942 |
Deferred revenue, net of current portion |
21,952 |
24,024 |
Other long-term liabilities |
816 |
1,012 |
Stockholders' equity |
225,367 |
269,837 |
Total liabilities and
stockholders' equity |
$ 267,688 |
$ 316,815 |
|
MOMENTA
PHARMACEUTICALS, INC. |
|
Unaudited Condensed
Statements of Comprehensive Loss |
|
(in thousands, except per share
amounts) |
|
|
Three Months |
Six Months |
|
Ended June
30, |
Ended June
30, |
|
2014 |
2013 |
2014 |
2013 |
Collaboration revenues: |
|
|
|
|
Product revenue |
$ 5,690 |
$ 1,628 |
$ 10,502 |
$ 7,024 |
Research and development
revenue |
5,260 |
2,733 |
11,233 |
4,940 |
Total collaboration
revenue |
10,950 |
4,361 |
21,735 |
11,964 |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Research and development* |
26,089 |
21,994 |
52,781 |
44,326 |
General and
administrative* |
11,219 |
11,516 |
22,936 |
21,233 |
Total operating expenses |
37,308 |
33,510 |
75,717 |
65,559 |
|
|
|
|
|
Operating loss |
(26,358) |
(29,149) |
(53,982) |
(53,595) |
|
|
|
|
|
Other income: |
|
|
|
|
Interest income |
140 |
243 |
340 |
512 |
Other income |
62 |
58 |
124 |
118 |
Total other income |
202 |
301 |
464 |
630 |
|
|
|
|
|
Net loss |
$ (26,156) |
$ (28,848) |
$ (53,518) |
$ (52,965) |
|
|
|
|
|
Basic and diluted net loss per share |
$ (0.51) |
$ (0.57) |
$ (1.04) |
$ (1.04) |
|
|
|
|
|
Weighted average shares used in computing
basic and diluted net loss per share |
51,466 |
50,746 |
51,411 |
50,690 |
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
Net loss |
$ (26,156) |
$ (28,848) |
$ (53,518) |
$ (52,965) |
Net unrealized holding gains (losses) on
available-for-sale marketable securities |
37 |
(24) |
21 |
(89) |
Comprehensive loss |
$ (26,119) |
$ (28,872) |
$ (53,497) |
$ (53,054) |
|
* Non-cash share-based
compensation expense included in operating expenses is as
follows: |
|
|
|
|
|
Research and development |
$ 1,701 |
$ 1,487 |
$ 3,246 |
$ 2,610 |
General and administrative |
$ 1,964 |
$ 1,842 |
$ 3,870 |
$ 3,591 |
CONTACT: IR CONTACT:
Momenta Pharmaceuticals, Inc.
IR@momentapharma.com
MEDIA CONTACT:
Karen Sharma
MacDougall Biomedical Communications
1-781-235-3060
Momenta@macbiocom.com
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