Momenta, Novartis deal

MNTA and NVS' generic unit, Sandoz, will partner to develop follow-on biologics and generic versions of non-protein drugs that are difficult to characterize. The partners will jointly develop, manufacture and commercialize two undisclosed late-stage candidates from Sandoz and one from MNTA. The partners will use MNTA's glycosylation and structural analysis technology to characterize and develop biomolecules.

Sandoz will make a $75 million upfront equity investment in MNTA through the purchase of 4.7 million shares at $15.93, which is a 22% premium to MNTA's close of $13.05 on July 25, the day before the deal was announced. MNTA also is eligible to receive up to $188 million in milestones. The companies will share profits from each product under separate profit sharing agreements for each compound. Profits from the MNTA product will be split equally. ...