NEW YORK (AP) — Shares of Momenta Pharmaceuticals Inc. jumped Monday after the company said a court is keeping competition for its anti-clotting drug enoxaparin off the market.
THE SPARK: Momenta and its partner Sandoz sell the authorized generic version of Lovenox, also called enoxaparin. After the market closed on Friday, Momenta said a Massachusetts court agreed that to block other companies from selling a generic version of the drug because those products infringed on patents belonging to Momenta.
The Food and Drug Administration recently approved a generic made by Amphastar Pharmaceuticals, and the injunction also prevents Watson Pharmaceuticals Inc. from selling a competing product until the lawsuit is resolved.
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THE BIG PICTURE: Momenta and Sandoz's generic reached the market in July 2010. Momenta said it has received a total of $256 million in profit on the drug since then, including $83.8 million in second quarter.
THE ANALYSIS: Wedbush analyst Duane Nash said the lawsuits will probably take years to resolve. He said Momenta's generic has about a 50 percent market share, and the entry of new generics would reduce that market share and force Momenta and Sandoz to reduce the price of their product.
"Friday's ruling is a clear victory for Momenta/Sandoz," Nash wrote.
SHARE ACTION: Shares of Momenta gained $2.58, or 21.1 percent, to $14.82 in morning trading. Shares fell 30.7 percent after the FDA approved Amphastar's version of enoxaparin.
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