Momenta Pharmaceuticals Announces That Launch of Authorized Generic Lovenox(R) Triggers Change in Collaboration Terms
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CAMBRIDGE, Mass., Oct. 24, 2011 (GLOBE NEWSWIRE) -- Momenta Pharmaceuticals, Inc. (Nasdaq:MNTA), a biotechnology company specializing in the characterization and engineering of complex drugs, today announced that Sandoz has confirmed the launch of an authorized generic version of Lovenox in the fourth quarter of 2011.
Under the terms of Momenta's 2003 Collaboration and License Agreement with Sandoz, upon the launch of an authorized generic Lovenox, for the remainder of the product year ending June 30, 2012, Sandoz is obligated to pay Momenta a 10-12% royalty on its net sales of enoxaparin sodium until the contractual profits from those net sales reaches a prorated contractual amount of approximately $99.1 million. Thereafter, provided that no other third party is marketing a generic Lovenox, Sandoz is obligated to pay Momenta 45% of contractual profits on net sales through the remainder of the product year ending June 30, 2012.
Going forward, if the authorized generic is the only marketed generic Lovenox, at the start of each subsequent product year, Sandoz is obligated to pay to Momenta a 10-12% royalty on net sales of enoxaparin sodium until the contractual profit reaches $135.0 million. Thereafter, for the balance of the product year, Sandoz is obligated to pay Momenta a 45% profit share.
"It is important to note that the "hybrid" royalty/profit share arrangement applies only as long as no other third party is marketing an interchangeable generic version of Lovenox," commented Richard P. Shea, Chief Financial Officer of Momenta. "Should an additional party commence marketing we would shift from the hybrid economics to a straight royalty of 10-12% on Sandoz' net sales with no profit share provision."
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