Loss Widens at Momenta - Analyst Blog
May 02 2013 - 5:19AM
Zacks
Momenta Pharmaceuticals Inc. (MNTA) reported
first quarter 2013 net loss per share of 48 cents, wider than the
Zacks Consensus Estimate of a loss of 43 cents and the year-ago
loss of 10 cents.
First quarter revenues of $7.6 million were down 218.4% year
over year. Revenues missed the Zacks Consensus Estimate of $9
million. The downtrend was due to competitive pressure resulting
from the entry of other generic versions of
Sanofi’s (SNY) Lovenox.
We note that Momenta and Sandoz had inked a deal in Nov 2003 to
jointly develop and commercialize a generic version of Lovenox.
Following the launch of a competitor’s generic version of Lovenox
in Jan 2012, there was a change in the basis of revenue that
Momenta received from Sandoz. The change was from a hybrid profit
share to a straight royalty structure.
Sandoz reported first quarter 2013 generic Lovenox net sales of
$47 million, down 73.3% year over year. Sales were hit by the loss
of exclusivity on generic Lovenox.
Research and development expenses were $22.3 million, compared
with $18.6 million in the year-ago quarter. The increase was
attributable to Momenta’s efforts to develop its pipeline. General
and administrative expenses declined to $9.7 million from $11
million in the year-ago quarter mainly due to lower legal fees.
2013 Guidance
Momenta confirmed its 2013 guidance with total operating
expenses, excluding stock-based compensation and net of
collaborative revenues, expected to be about $30 million per
quarter. Momenta expects average net cash usage in the range of $20
million to $24 million per quarter for a total operating cash usage
of roughly $80 million to $90 million.
Pipeline
Apart from reporting first quarter earnings, Momenta provided an
update on its pipeline. Momenta stated that the abbreviated new
drug application (ANDA) for M356, its generic version of
Teva Pharmaceutical Industries Ltd.’s (TEVA)
Copaxone, is under active review by the US Food and Drug
Administration (FDA). An appellate decision in the patent
infringement lawsuit initiated by Teva is expected in the second
half of 2013.
Three biosimilar products are currently under development,
namely, M923 and M834 for the treatment of autoimmune and other
inflammatory indications, and M511 for the treatment of cancers.
Momenta intends to submit an Investigational New Drug (IND)
application for M923 in 2014. In addition, Momenta is working
towards the achievement of development criteria for milestone
payments in 2014 for M511 and M834.
Momenta's first quarter results were disappointing with shares
declining 6.9%. Momenta carries a Zacks Rank #3 (Hold). Right now,
UCB (UCBJF) looks attractive with a Zacks Rank #1
(Strong Buy).
MOMENTA PHARMA (MNTA): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis Report
TEVA PHARM ADR (TEVA): Free Stock Analysis Report
UCB SA (UCBJF): Get Free Report
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