Momenta (MNTA) Collaborates with Mylan for 6 Biosimilars

Momenta Pharmaceuticals, Inc. MNTA announced that it has entered into an exclusive global collaboration agreement with Mylan N.V. MYL to develop, manufacture and commercialize six of its current biosimilar candidates, including Bristol-Myers Squibb Co.'s BMY Orencia (abatacept).

Terms of the Agreement

As per the terms of the agreement, Mylan will make an upfront cash payment of $45 million along with milestone payments of up to $200 million to Momenta. The companies will equally share costs and profits with respect to the products and be jointly responsible for their development.

While Mylan will lead worldwide commercialization efforts, Momenta will have the option to co-commercialize any approved product in the U.S. in a supporting commercial role.

Our Take

The agreement bodes well for both the companies as Momenta’s proven capabilities in complex product development will complement Mylan’s world-class R&D capabilities, biosimilar development experience, operational excellence and expansive global commercial footprint in the development of the biosimilars.

The collaboration will further expand Mylan’s biosimilar portfolio. On the other hand, Momenta’s efforts to develop its biosimilar portfolio are noteworthy.

Currently, Momenta is developing M923 (a biosimilar version of Humira) in collaboration with Baxalta, Inc. BXLT. We remind investors that in Feb 2015, Baxalta had partially terminated its agreement with Momenta for the development of a biosimilar version of Orencia. Orencia is approved for the treatment of rheumatoid arthritis in adults and juvenile idiopathic arthritis.

Commercial opportunity in the field of biosimilars is significant and with the FDA approval for the first biosimilar (Zarxio) in the U.S., a regulatory pathway has also been established.

Both Momenta and Mylan currently carry a Zacks Rank #3 (Hold). Bristol-Myers, with a Zacks Rank #2 (Buy), is a better-ranked stock in the health case sector.

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