As part of the collaboration, Sandoz will make an initial payment of $75 million to Momenta for the purchase of approximately 4.7 million shares at a price of $15.93 per share, a 30% premium to the trailing 30-day average. Momenta is also eligible to receive up to $188 million in additional payments if all milestones are achieved for the four product candidates.
The collaboration will include one late-stage compound from Momenta’s pipeline and two late-stage compounds from Sandoz.
The alliance also expands the companies’ existing US partnership on M-Enoxaparin, which was established in November 2003, to the European Union. M-Enoxaparin is a technology-enabled generic version of Lovenox, a low molecular weight heparin indicated for use in treating deep vein thrombosis (DVT) and several cardiovascular conditions.
In August 2005, an abbreviated new drug application (ANDA) was submitted to the FDA seeking marketing approval for M-Enoxaparin.
The two companies will jointly develop, manufacture and commercialize all of these candidates, and share the profits from the sales of all products under separate profit share arrangements for each product, including an equal profit split specifically on the product candidate from Momenta’s pipeline.
“Complex generics and follow-on proteins are one of the most rapidly evolving areas of product development in the pharmaceutical industry,” said Alan Crane, CEO of Momenta. “With this partnership, we believe we will be well positioned to capitalize on this untapped potential and realize significant product value.”