Momenta Pharmaceuticals Inc. (MNTA) reported third quarter 2013 net loss per share of 50 cents, wider than the Zacks Consensus Estimate of a loss of 48 cents. The year-ago loss was 51 cents.
Third quarter revenues of $10.8 million were up 111.8 % year over year. Revenues surpassed the Zacks Consensus Estimate of $10 million. Revenues comprised entirely of collaboration revenues in the third quarter. Collaboration revenues included product revenues and research and development revenues. Product revenues represented royalty received from Novartis (NVS) pertaining to sales of the generic version of Lovenox. Product revenues were $4.8 million, above the year-ago revenues of $2.6 million, due to adjustments to reserve accruals in the year-ago quarter due to pricing pressures.
Research and development expenses were $27.4 million, up from $20.2 million in the year-ago quarter. The increase was attributable to process development, manufacturing and research costs pertaining to the company’s biosimilars program. General and administrative expenses declined to $9 million from $11 million in the year-ago quarter mainly due to lower legal fees.
2013 Guidance Maintained
Total operating expenses, excluding stock-based compensation and net of collaborative revenue, are still expected to be around $30 million per quarter in 2013. 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.
Apart from reporting third quarter earnings, Momenta provided an update on its pipeline. In Jul 2013, Momenta received a favorable ruling from the U.S. Court of Appeals for the Federal Circuit which allows the company to launch its generic version of Teva Pharmaceutical Industries Ltd.’s (TEVA) Copaxone after May 2014 subject to the U.S. Food and Drug Administration (:FDA) approval. Teva had filed a petition for a rehearing of the Federal Circuit's opinion in the reported quarter, which was later denied. Momenta's generic version of Copaxone is currently under FDA review.
Three biosimilar candiates are currently under development, namely, M923 and M834 for autoimmune and other inflammatory indications, and M511 for the treatment of cancer. Momenta intends to submit an Investigational New Drug (IND) application for M923 in the second half of 2014.
A proof-of-concept phase 1/2 study evaluating M402 in combination with Abraxane and Gemzar in patients with pancreatic cancer is in progress. Data from Part A of the study will be out in the first half of 2014.
Momenta carries a Zacks Rank #3 (Hold). Right now, Actelion Ltd. (ALIOF) looks more attractive with a Zacks Rank #1 (Strong Buy).