Momenta CEO Discusses Q3 2010 Results – Earnings Call Transcript
Momenta Pharmaceuticals, Inc. (
)
Q3 2010 Earnings Call Transcript
November 1, 2010 11:00 am ET
Executives
Beverly Holley – Director, IR
Craig Wheeler – President and CEO
Rick Shea – SVP and CFO
Analysts
Simos Simeonidis – Rodman & Renshaw
Eric Schmidt – Cowen & Company
Bret Holley – Oppenheimer
Duane Nash – Wedbush
Joseph Schwartz – Leerink Swann
Ritu Baral – Canaccord
Avik Roy – Monness, Crespi, Hardt & Co.
Steven Tepper – Harel Finance
Presentation
Operator
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Momenta Pharmaceuticals, Inc. Q3 2009 Earnings Call Transcript
Good day, ladies and gentlemen and thank you for standing by. Welcome to the Momenta Pharmaceuticals Third Quarter 2010 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to our host for today, Ms. Beverly Holley, Director of Investor Relations. Ma'am, please go ahead.
Beverly Holley
Thank you and good morning. I want to welcome all of you to Momenta's conference call to discuss financial results for the third quarter of 2010 and provide a corporate update. With me on the call today with prepared remarks are Craig Wheeler, President and Chief Executive Officer and Rick Shea, Senior Vice President and Chief Financial Officer.
Following our remarks, we'll open the call to questions. Before we begin, I'd like to mention that our call today will contain forward-looking statements. Various remarks that Momenta Pharmaceuticals may make about management's future expectations, beliefs, intentions, goals, strategies, plans and prospects, including statements relating to our beliefs regarding the commercial market for generic enoxaparin, the potential for other generic enoxaparin products to receive FDA approval, the FDA's review of generic Copaxone, our other product development plans and prospects for novel programs and follow-on biologics, the company's revenue, expenses and other results of operations including the quarter ended September 30, 2010 and current and future development efforts and commercialization efforts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by terminology such as anticipate, believe, could, could increase the likelihood, hope, target, project, goals, potential, predict, might, estimate, expect, intend, is planned, may, should, will, will enable, would be expected, look forward, may provide, would or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors referred to in the company's quarterly report on Form 10-Q for the quarter ended June 30, 2010 filed with the Securities and Exchange Commission under the section Risk Factors as well as other documents that may be filed by Momenta from time to time with the Securities and Exchange Commission.
As a result of such risks, uncertainties and factors, the company's actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. Momenta is providing the information in this press release and conference call as of this date and assumes no obligations to update the information included in the conference call or revise any forward-looking statements whether as a result of new information, future events or otherwise.
With that, I will now turn this call over to Craig Wheeler, Momenta's President and Chief Executive Officer.
Craig Wheeler
Thank you, Beverly. Good morning, everyone and thank you for joining us on today's call. We'll provide an overview of the quarter starting with an update on the enoxaparin launch, discuss the quarterly financials, provide a quick update on other corporate developments and then move on to Q&A.
Just over three months ago our collaborative partner, Sandoz, launched the first ever generic Lovenox. I'm happy to report that the launch has been highly successful. In their earnings call on October 21, Novartis reported M-Enoxaparin sodium injection net sales of $292 million for the nine weeks of the sales in the third quarter. This morning Momenta reported our first profitable quarter, booking $44 million in net enoxaparin revenue.
Combined with a $5 million milestone payment from Sandoz as well as our other collaborative revenues, our total revenue for the quarter was $52 million. Our $44.2 million in profit share revenue is being reported net of a deduction by Sandoz for our share of pre-launch development costs.
Following my comments, Rick will recap the economics of the collaboration and the calculation of our reported profit share. At the time of the launch, we projected our supply capacity at a 35% to 40% market share. We are now tracking slightly over that level as the Momenta and Sandoz supply-chain teams are working hard to maximize the output of our present supply chain to take advantage of our sole generic status.
I'll caution that Sandoz commented that the first launch quarter sales included a significant level of in stocking. So they've suggested that the fourth-quarter enoxaparin sales would be lower than sales for Q3.
The generic product's market penetration suggests that the product has been readily accepted by providers and payers as well as by physicians and patients. This has been an impressive launch. In fact, Novartis has noted that it is the most successful generic injectable launch ever in the U.S., which is very gratifying.
I want to acknowledge the research, development and commercial teams both at Momenta and at Sandoz that made it happen. From the product concept in 2002, our early characterization work that enabled our 2003 collaboration with Sandoz, our extensive work to demonstrate sameness and address immunogenicity and finally, our work to establish a safe and robust supply-chain, all were key to success in bringing this product to market.
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