Momenta Pharmaceuticals, Inc.
MOMENTA PHARMACEUTICALS INC (Form: 8-K, Received: 02/09/2012 09:01:57)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported) February 9, 2012

 

Momenta Pharmaceuticals, Inc.

(Exact Name of Registrant as Specified in Charter)

 

Delaware

 (State or Other Jurisdiction

 of Incorporation)

 

000-50797

 (Commission File Number)

 

04-3561634

 (IRS Employer

 Identification No.)

 

675 West Kendall Street, Cambridge, MA

 (Address of Principal Executive Offices)

 

02142

 (Zip Code)

 

(617) 491-9700

 (Registrant’s telephone number, including area code)

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

 

o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02.  Results of Operations and Financial Condition

 

On February 9, 2012, Momenta Pharmaceuticals, Inc., a Delaware corporation, announced its financial results for the quarter and year ended December 31, 2011.  The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01.  Financial Statements and Exhibits

 

(d)          Exhibits

 

The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:

99.1.  Press Release issued by Momenta Pharmaceuticals, Inc. on February 9, 2012.

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

 

MOMENTA PHARMACEUTICALS, INC.

 

 

 

By:

/s/ Richard P. Shea

 

 

Richard P. Shea

 

 

Chief Financial Officer

 

 

(Principal Financial Officer)

 

Date: February 9, 2012

 

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EXHIBIT INDEX

 

Exhibit No.

 

Description

99.1

 

Press Release issued by Momenta Pharmaceuticals, Inc. on February 9, 2012.

 

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Exhibit 99.1

 

MOMENTA PHARMACEUTICALS, INC.

 

675 WEST KENDALL STREET

 

T: 617.491.9700

 

F: 617.621.0430

 

 

CAMBRIDGE, MA 02142

 

WWW.MOMENTAPHARMA.COM

 

 

Momenta Pharmaceuticals Reports

Financial Results for the Fourth Quarter and Year End 2011

 

CAMBRIDGE, MA — February 9, 2012 — Momenta Pharmaceuticals, Inc. (Nasdaq: MNTA), a biotechnology company specializing in the characterization and engineering of complex drugs, today reported its financial results for the fourth quarter and year ended December 31, 2011.

 

“2011 was an outstanding year for Momenta.  We recorded our second year of profitability, added $200 million to our cash position, and signed a global collaboration with Baxter to develop and commercialize biosimilars and potentially interchangeable biologics.   We believe this area represents a major commercial opportunity and is very well suited to our technology and capabilities,” commented Craig A. Wheeler, President and Chief Executive Officer. “In 2012 we are committed to progressing our pipeline, including generic Copaxone, follow-on biologics and novel drugs.”

 

For the fourth quarter of 2011, the Company reported a net loss of $1.3 million, or $0.02 per share, compared to a net income of $36.3 million, or $0.77 per diluted share, for the same period in 2010.  For the year ended December 31, 2011, the Company reported net income of $180.4 million, or $3.55 per diluted share, compared to net income of $37.3 million, or $0.81 per diluted share, for the same period in 2010.  At December 31, 2011, the Company had cash, cash equivalents, and marketable securities of $365.9 million (including restricted cash of $17.5 million), compared to $154.5 million (including restricted cash of $1.8 million) at December 31, 2010.

 

The Company noted the following highlights and recent developments:

 

·                                           In December 2011, Momenta and Baxter entered into a collaboration to develop up to six follow-on biologic compounds. Under the terms of the agreement, Baxter will make an upfront cash payment of $33 million to Momenta and may make additional payments over the next several years for the development of the compounds, contingent upon the achievement of technical, development and regulatory milestones with respect to all six products.

 

·                                           In December 2011, Momenta entered into an agreement to acquire certain assets of Virdante Pharmaceuticals, Inc., including intellectual property and cell lines, relating to the sialylation of intravenous immunoglobulin (IVIG) and other proteins.

 



 

·                                           A preliminary injunction preventing Amphastar Pharmaceuticals, Inc., Watson Pharmaceuticals, Inc. and their subsidiaries from launching a generic version of Lovenox was stayed on January 26, 2012.

 

·                                           The recent launch of a competitive generic Lovenox triggered a change in the contract terms with our collaboration partner, Sandoz, from a hybrid profit share/royalty to a royalty.

 

Financial Results

 

Revenue for the fourth quarter of 2011 was $29.5 million (including product revenue of $26.1 million), compared to $58.3 million (including product revenue of $52.4 million) for the same period in 2010. The decrease in product revenue was due to a decrease in net sales of enoxaparin by Sandoz, due primarily to lower unit pricing, and by a contractual change in the basis of calculating our enoxaparin product revenue, both related to the launch of an authorized generic Lovenox in October 2011.  In the fourth quarter of 2010, we earned a profit share on sales of enoxaparin, and in the fourth quarter of 2011, we earned a hybrid royalty/profit share.  For the year ended December 31, 2011, revenue was $283.1 million, compared to $116.8 million for 2010.  The enoxaparin product was approved and launched in July 2010, so the year 2011 included a full year of product revenue while 2010 included two quarters.

 

Research and development expenses for the fourth quarter of 2011 were $21.2 million, compared to $15.2 million for the same period in 2010. The increase of $6.0 million in research and development expenses from fourth quarter 2010 to fourth quarter 2011 was due to an in-process research and development charge of $4.5 million recorded in the fourth quarter of 2011 relating to the acquisition of assets from Virdante , and increases in stock compensation expense and other headcount related expenses, offset by a decrease in development expenses for our M356 program. For the year ended December 31, 2011, research and development expenses were $64.7 million, compared to $51.7 million for 2010.  The increase in research and development expenses from 2010 to 2011 principally resulted from the in-process R&D expense related to the Virdante asset purchase, an increase in headcount related expenses, and an increase in amortization expense.

 

General and administrative expenses for the fourth quarter of 2011 totaled $9.7 million, compared with $7.8 million for the same period in 2010.  The increase in general and administrative expenses from fourth quarter 2010 to fourth quarter 2011 was primarily due to increased legal expenses relating to the enoxaparin litigation and increased stock compensation and other headcount related expenses, offset by a decrease in the royalty payable to the Massachusetts Institute of Technology. For the year ended December 31, 2011, general and administrative expenses were $38.7 million, compared to $28.6 million for 2010.  The increase in general and administrative expenses from 2010 to 2011 was primarily due to an increase in the royalty payable to the Massachusetts Institute of Technology and increased legal expenses.

 

Financial Guidance

 

We anticipate that total operating expenses, excluding stock compensation and royalties payable to MIT, and net of collaborative revenues, will increase to approximately $22 to $28 million per quarter for 2012.

 

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Conference Call Information

 

Management will host a conference call on Thursday, February 9, 2012 at 10:00 am ET to discuss these results and provide an update on the Company.  To access the call, please dial (877) 224-9084 (domestic) or (720) 545-0022 (international) prior to the scheduled conference call time and provide the access code 46791297. An archived version of the webcast will be posted on the Momenta website approximately two hours after the call.

 

About Momenta

 

Momenta Pharmaceuticals is a biotechnology company specializing in the detailed structural analysis of complex mixtures and is headquartered in Cambridge, MA. Momenta is applying its technology to the development of generic versions of complex drug products, as well as to the discovery and development of novel drugs.

 

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, the Company’s revenue, expenses and other results of operations, including the quarter and year ended December 31, 2011, projections regarding expenses, our profitability, and our other product development plans and expectations may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995..  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 for the quarter ended September 30, 2011 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.

 

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MOMENTA PHARMACEUTICALS, INC.

Unaudited, Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

December 31,
2011

 

December 31,
2010

 

Assets

 

 

 

 

 

Cash and marketable securities

 

$

348,438

 

$

152,759

 

Accounts receivable

 

28,171

 

54,485

 

Restricted cash

 

17,500

 

1,778

 

Other assets

 

26,800

 

18,547

 

Total assets

 

$

420,909

 

$

227,569

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current liabilities

 

$

16,028

 

$

17,652

 

Other liabilities

 

1,803

 

3,814

 

Stockholders’ equity

 

403,078

 

206,103

 

Total liabilities and stockholders’ equity

 

$

420,909

 

$

227,569

 

 

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MOMENTA PHARMACEUTICALS, INC.

Unaudited Condensed Statements of Operations

(in thousands, except per share amounts)

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

 

2011

 

2010

 

2011

 

2010

 

Collaboration revenues:

 

 

 

 

 

 

 

 

 

Product revenues

 

$

26,148

 

$

52,437

 

$

270,473

 

$

96,625

 

Research and development revenues

 

3,307

 

5,889

 

12,595

 

20,147

 

Total revenues

 

29,455

 

58,326

 

283,068

 

116,772

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development*

 

21,239

 

15,191

 

64,657

 

51,712

 

General and administrative*

 

9,714

 

7,836

 

38,710

 

28,595

 

Total operating expenses

 

30,953

 

23,027

 

103,367

 

80,307

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

(1,498

)

35,299

 

179,701

 

36,465

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest income

 

247

 

44

 

746

 

176

 

Interest expense

 

(2

)

(63

)

(91

)

(329

)

Other income

 

 

978

 

 

978

 

Total other income

 

245

 

959

 

655

 

825

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(1,253

)

$

36,258

 

$

180,356

 

$

37,290

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.02

)

$

0.79

 

$

3.62

 

$

0.84

 

Diluted

 

$

(0.02

)

$

0.77

 

$

3.55

 

$

0.81

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

50,128

 

45,940

 

49,852

 

44,626

 

Diluted

 

50,128

 

46,930

 

50,823

 

45,942

 

 

 


 

*Includes the following share-based compensation expense:

 

 

 

 

 

 

 

 

 

Research and development

 

$

1,369

 

$

794

 

$

4,919

 

$

4,085

 

General and administrative

 

$

1,753

 

$

1,293

 

$

6,219

 

$

6,755

 

 

CONTACT:

Momenta Pharmaceuticals, Inc.

Beverly Holley, Director of Investor Relations

ir@momentapharma.com

(617) 395-5189

 

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