Yahoo Finance Momenta (MNTA) to Receive $50M Under CSL Collaboration
Momenta Pharmaceuticals, Inc. MNTA announced that it has entered into an exclusive research collaboration and worldwide license agreement with CSL Limited.
Momenta’s share price has outperformed the Zacks classified Medical Biomed/Genetics in the last twelve months. The stock gained 14.3% during that period, compared to a decline of 17.4% for the industry.
As per the license agreement, both the companies have agreed to develop and commercialize Fc multimer proteins, including Momenta's M230.
M230, a selective immunomodulator of Fc receptors, is expected to enter the clinic later in 2017.
As per the terms of the agreement, Momenta will receive a $50 million upfront license fee from CSL. The company is entitled to receive future milestone and royalty payments for M230 for upto $550 million. Momenta owns the option to elect a cost and profit sharing arrangement, for which Momenta would fund a proportion of global development and commercialization costs in exchange for a share of profits in the U.S. along with milestones and royalties outside the U.S.
Additionally, both the companies plan to enter into a research collaboration to develop additional Fc multimer proteins that may originate from Momenta's or CSL's research. Moreover, Momenta has the option to enter into an agreement to co-promote M230 and any other collaboration product in the U.S.
The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions.
Notably, the company has collaborated with a few other firms to advance its pipeline. Momenta has also collaborated with Mylan MYL to develop, manufacture and commercialize six of its current biosimilar candidates, including M834 a biosimilar version of Orencia. The company also has a collaboration and license agreement with Novartis’s generic arm NVS Sandoz for Glatopa and Enoxaparin Sodium Injection.
Momenta currently carries a Zacks Rank #4 (Sell).
MOMENTA PHARMA Price and Consensus
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