Friday, December 23, 2011

Momenta, Baxter form potential $450M generic drug deal

By Michelle Lang

Momenta Pharmaceuticals Inc., a Cambridge-based developer of novel and generic drugs, has formed a $33 million collaboration deal with Baxter International Inc. that could balloon to more than $450 million with possible milestone payments included. The agreement centers around the development and commercialization of biosimilars, a form of generic drugs, in the areas of cancer, autoimmune disorders and chronic diseases.

Through the deal, Momenta will bring its experience in developing generic drug products, as well as its focus on high-resolution analytics and product and process development. Baxter will add its biologic manufacturing and clinical development experience.

Momenta is due a $33 million upfront payment from Illinois-based Baxter to work on up to six biosimilars, per the deal. The Cambridge biotech then may land milestone payments, plus additional royalties on sales resulting from the commercialized products, that could bring the company more than $450 million.

Momenta announced earlier this month that it bought the sialic switch technology assets of fellow Cambridge biotech Virdante Pharmaceuticals Inc. That deal calls for Momenta to pay out $4.5 million up front, with possible milestone payments up to $51.5 million.

Founded in 2001 from MIT-developed technology for complex sugar molecule sequencing, Momenta (Nasdaq: MNTA) is focused on two lead drug programs – M-Enoxaparin, a generic version of Lovenox to treat deep vein thrombosis and acute coronary effects, and M356, a generic version of Copaxone to aid in treating Relapse-Remitting Multiple Sclerosis.
 

Editor's note: A previous version of this article misstated the amount of the deal. The collaboration may bring Moment more than $450 million.