Momenta reports $32.1M net income for third quarter 2010 vs. $14.6M net loss for third quarter 2009

Momenta Pharmaceuticals, Inc. (Nasdaq:MNTA), a biotechnology company specializing in the characterization and engineering of complex drugs, today announced its financial results for the quarter ended September 30, 2010.

For the third quarter of 2010, the Company reported a net income of $32.1 million, or $0.70 per diluted share, compared with a net loss of $14.6 million, or $0.38 per share, for the same period last year. At September 30, 2010, the Company had cash, cash equivalents, and marketable securities of $65.7 million, compared with $95.7 million at December 31, 2009.

"Momenta reached profitability in the third quarter thanks to a very strong enoxaparin launch by our collaboration partner, Sandoz," commented Craig A. Wheeler, President and Chief Executive Officer. "For the nine weeks in the quarter that enoxaparin was on the market, Momenta earned $44.2 million in profit share in addition to a $5.0 million milestone payment," he continued. "Sales continue to be strong, and because the Sandoz product continues to be the only approved source of generic Lovenox^®, Momenta continues to earn a significant profit share on product sales," Wheeler concluded.

Third Quarter 2010 Financial Results

Revenue for the third quarter of 2010 was $52.0 million, compared to $4.0 million for the same period last year. The increase in revenue in the current year's quarter was due to $44.2 million of profit share earned from commercial sales of enoxaparin sodium injection and the $5.0 million regulatory milestone earned upon FDA marketing approval of enoxaparin sodium injection in July of 2010.

Research and development expenses for the third quarter of 2010 were $12.5 million, compared to $12.9 million for the same period last year. The decrease in research and development expenses principally resulted from a decrease in manufacturing, process development and third-party research costs in support of our M356 program.

General and administrative expenses for the third quarter of 2010 totaled $7.3 million, compared with $5.6 million for the same period last year. The increase in general and administrative expenses was due to an increase in royalty and license fees associated with the product revenues of enoxaparin sodium injection and an increase in personnel and related costs primarily due to performance payments made in connection with the regulatory approval of enoxaparin sodium injection.

Quarterly Highlights

• Approval by FDA and successful launch of enoxaparin sodium injection on July 23, 2010.
   
• Ongoing regulatory review of generic Copaxone ANDA; Copaxone patent litigation heading toward trial. 
   
• Two new patents issued relating to chain mapping of enoxaparin sodium injection.  
   
• M118 named a Top Ten CV/Metabolic Project to Watch by Windhover Information and the publishers of In Vivo and Startup.