We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Momenta (MNTA) Q3 Loss Narrower than Expected, Sales Up
Read MoreHide Full Article
Momenta Pharmaceuticals Inc. reported a loss of 26 cents per share in the third quarter of 2016, narrower than both the Zacks Consensus Estimate of a loss of 29 cents and the year-ago loss of 44 cents.
Moreover, revenues in the quarter surged 110.9% to $29.1 million and beat the Zacks Consensus Estimate of $26.6 million.
Quarter in Detail
Momenta’s top line comprised product revenues of $23.3 million earned from Novartis AG (NVS - Free Report) Sandoz’s sales of Glatopa, a generic version of Copaxone (20 mg).
Note that Sandoz’s abbreviated New Drug Application (ANDA) for the 40-mg thrice-weekly formulation of Copaxone is currently under FDA review. A tentative approval is expected in the upcoming months.
Collaborative research and development revenues came in at $5.8 million, up 13.7% primarily driven by revenues recognized from the amortization of an upfront payment under the collaboration agreement with Mylan N.V. .
While research and development expenses were down 0.3% to $31.6 million, general and administrative expenses increased 26.4% to $15.6 million.
Outlook
Momenta expects operating expenses (excluding stock-based compensation and net of collaborative revenues) in the range of $40–$45 million for the fourth quarter of 2016.
Collaboration revenues, under its agreement with Mylan are anticipated to be $1.8 million per quarter.
Pipeline Update
Momenta continues to progress with its pipeline candidates. Under its collaboration with Mylan, the company initiated a phase I study on M834, a biosimilar version of Orencia (abatacept). Top-line data from the study are expected by the end of 2017.
In the third quarter, Momenta regained global development and commercialization rights to M923, a biosimilar version of Humira (adalimumab). M923 is currently being evaluated in a phase III study. Top-line results from the study should be out by late 2016, with the first regulatory submission for marketing approval planned for mid 2017.
Momenta reported encouraging results for the third quarter of 2016, wherein loss was narrower than expectations and revenues beat estimates.
We note that Glatopa sales have rebounded since the third quarter of 2015 as inventories were worked through. However, Teva has already switched approximately 75% of once-daily Copaxone 20 mg patients to thrice-weekly Copaxone 40 mg. Nevertheless, we are encouraged by the company’s progress with the biosimilars in its pipeline.
Zacks Rank & Key Picks
Momenta carries a Zacks Rank #2 (Buy). Infinity Pharmaceuticals, Inc. is another favorably placed stock in the healthcare sector, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 but remained unchanged for 2017 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 67.62%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand.Click to see them now>>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Momenta (MNTA) Q3 Loss Narrower than Expected, Sales Up
Momenta Pharmaceuticals Inc. reported a loss of 26 cents per share in the third quarter of 2016, narrower than both the Zacks Consensus Estimate of a loss of 29 cents and the year-ago loss of 44 cents.
Moreover, revenues in the quarter surged 110.9% to $29.1 million and beat the Zacks Consensus Estimate of $26.6 million.
Quarter in Detail
Momenta’s top line comprised product revenues of $23.3 million earned from Novartis AG (NVS - Free Report) Sandoz’s sales of Glatopa, a generic version of Copaxone (20 mg).
Note that Sandoz’s abbreviated New Drug Application (ANDA) for the 40-mg thrice-weekly formulation of Copaxone is currently under FDA review. A tentative approval is expected in the upcoming months.
Collaborative research and development revenues came in at $5.8 million, up 13.7% primarily driven by revenues recognized from the amortization of an upfront payment under the collaboration agreement with Mylan N.V. .
While research and development expenses were down 0.3% to $31.6 million, general and administrative expenses increased 26.4% to $15.6 million.
Outlook
Momenta expects operating expenses (excluding stock-based compensation and net of collaborative revenues) in the range of $40–$45 million for the fourth quarter of 2016.
Collaboration revenues, under its agreement with Mylan are anticipated to be $1.8 million per quarter.
Pipeline Update
Momenta continues to progress with its pipeline candidates. Under its collaboration with Mylan, the company initiated a phase I study on M834, a biosimilar version of Orencia (abatacept). Top-line data from the study are expected by the end of 2017.
In the third quarter, Momenta regained global development and commercialization rights to M923, a biosimilar version of Humira (adalimumab). M923 is currently being evaluated in a phase III study. Top-line results from the study should be out by late 2016, with the first regulatory submission for marketing approval planned for mid 2017.
MOMENTA PHARMA Price, Consensus and EPS Surprise
MOMENTA PHARMA Price, Consensus and EPS Surprise | MOMENTA PHARMA Quote
Our Take
Momenta reported encouraging results for the third quarter of 2016, wherein loss was narrower than expectations and revenues beat estimates.
We note that Glatopa sales have rebounded since the third quarter of 2015 as inventories were worked through. However, Teva has already switched approximately 75% of once-daily Copaxone 20 mg patients to thrice-weekly Copaxone 40 mg. Nevertheless, we are encouraged by the company’s progress with the biosimilars in its pipeline.
Zacks Rank & Key Picks
Momenta carries a Zacks Rank #2 (Buy). Infinity Pharmaceuticals, Inc. is another favorably placed stock in the healthcare sector, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 but remained unchanged for 2017 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 67.62%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>