Sandoz and Momenta to collaborate on generics R&D

Sandoz, the generics arm of Swiss drug major Novartis, says that it has entered a collaboration agreement with US firm Momenta Pharmaceuticals, under which they will develop follow-on versions of previously-approved recombinant biotechnology and complex drugs. The accord, which will include one late-stage compound from Momenta's pipeline and two from Sandoz', expands an existing R&D collaboration on M-Enoxaparin (a generic version of Sanofi-Aventis' Lovenox) that the companies established in 2003. Under the terms of the deal Sandoz, which will gain exclusive rights to all four products, will make an initial payment of $75.0 million to purchase around 4.7 million shares in the US firm. The companies will share the profits from any products that are approved and sold.