Momenta Pharmaceuticals' CEO Presents At Goldman Sachs 33rd Annual Global Healthcare Conference (Transcript)

Momenta Pharmaceuticals, Inc. (MNTA)

Goldman Sachs 33rd Annual Global Healthcare Conference

June 7, 2012 12:20 p.m. ET


Craig Wheeler - CEO


Sapna Srivastava - Goldman Sachs


Sapna Srivastava - Goldman Sachs

Thank you. Good morning and thanks for joining us. I am Sapna Srivastava, biotech analyst at Goldman Sachs. And it’s my pleasure to host Craig Wheeler, CEO of Momenta. And thank you so much Craig for coming, really appreciate to know with the trip (indiscernible) with the morning here.

Before we go into the discussion, I just want to read this out to the audience. We’re required to make certain disclosures and public appearances about Goldman Sachs’ relationships with companies that we discuss. The disclosures relate to investment banking relationships’ compensation received or 1% or more ownership. I am prepared to read disclosures if anyone would like me to, however, these disclosures are available in our most recent reports available to U.S. clients on our firm’s portals. Views of non-Goldman Sachs personnel may not represent the company views.

And with that, I will kick it off, and just a reminder to the audience we would like this to be interactive. So please ask as many questions as you have. Craig, when we sat down here last year, it’s amazing to me how much has happened at Momenta since then, from the Lovenox side of it to the Baxter side of it. I would just love to get your views over like, this really I think a period of massive activity and evolution of the company, where do you see your most – your largest key opportunities now and where you are most focused for taking the company towards?

Craig Wheeler

Sure. Well, first let me say thanks very much for having us. I always love to come out to this conference, it’s got a wonderful location and a great set of investors we have to meet with. And of course, I have to say my (indiscernible) side as well to remind everybody that I will be making forward looking statements today, and we undertake no obligation to update these forward looking statements, and the rest of it, I haven’t memorized. So you can read.

So yeah, indeed it’s been a pretty amazing time at Momenta in the last year. We got ups and downs with, of course competition coming with enoxaparin. But what the success with enoxaparin has done is it’s basically allowed us to really begin to execute on the vision of the company. And I can’t really take credit for the founding vision of the company but we’ve done an awful lot to try to execute against it, and the moves that we made particularly towards the end of last year have really set us on the chorus that I think provides for us for the long term growth and let me talk about a few aspects of those.

And just to remind everybody, our company basically has three pieces of the company. The first is the complex generics business, I am sure we will talk in about enoxaparin, Copaxone as we get to the discussion. And that’s really designed to be the fuel for the company. The idea was, let’s make generics that are harder for other people to make use in our science and that allows us bring in revenues that fund the company. The second leg of that business is follow-on biologics. And that one – it’s been a little bit slow to start for a couple of reasons. One is before Enox was approved, we got to put in and invest a lot of money there, and secondly, without a pathway that was past couple of years ago, there was really no way to get these drugs approved. And so even though we knew it was coming, it was very hard to make the investment decisions or find partners before we had those things to fall into place.

And then the third and really the original founding purpose, with people working at MIT, when they founded this company, was to be able to use this deeper structural analysis to develop new drugs. And that one is probably the longer term vision but with the acquisition of the Virdante asset (indiscernible) going into the clinics et cetera, we’ve put a strong foundation in place in terms of the new drug business. So it’s pretty exciting.

Now let me just come back and talk about a couple of things that happened at the end of December in those two pieces and how they contribute to it. First, follow-on biologics. The follow-on biologics business for us is one where unlike Enox and Copaxone were they were really one-off. What I mean by one-off is scientifically one-off. There is not a lot of complex synthetic polypeptide around, you go after, see this full suite of technologies to like our product but you really can’t lever it. When we’ve looked at biologics, we’ve always seen that as a place to actually scale our operation, where we’re doing one show product, we can do six. We are looking across and saying there is real scale of synergies in these products from science side. And so to do that, we needed a partner and that’s what we set out to do is to find a partner. And we were very fortunate at the end of December to be able to sign a deal with Baxter Pharmaceuticals which, and we can go into this in later questions, I believe is the ideal partner for us in terms of a number of reasons that they bring and it’s very, very complementary to Momenta skill set.

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