Momenta, Sandoz collaborate to develop follow-on and generic drugs

By Lisa Kerner

Charlotte, N.C., July 25 - Momenta Pharmaceuticals, Inc. and Sandoz, the generics business of Novartis, agreed to collaborate on the development of four follow-on and generic versions of recombinant biotechnology and complex drugs, including one late-stage compound from Momenta's pipeline and two late-stage compounds from Sandoz.

The companies will jointly develop, manufacture and commercialize all of candidates and share in the profits from product sales.

Momenta will provide its characterization technology, which enables the detailed chemical sequencing and analysis of complex mixtures, while Sandoz will bring its development, manufacturing and marketing capabilities to the collaboration.

Sandoz will pay an initial $75 million to purchase approximately 4.7 million shares of Momenta stock at a price of $15.93 per share, a 30% premium to the trailing 30-day average, according to a company news release.

Momenta may receive an additional $188 million in milestone payments.

The collaboration also expands the companies' existing U.S. partnership on M-Enoxaparin, a technology-enabled generic version of Lovenox for the treatment of deep vein thrombosis and cardiovascular conditions.

Momenta is a Cambridge, Mass.-based biotechnology company specializing in the characterization and engineering of complex drugs.

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