Sandoz takes big stake in Momenta

Generic drug giant Sandoz, a division of Novartis, has taken a 13 percent stake in Momenta Pharmaceuticals, a biotech company that develops complex sugars used for enhancing existing therapies and creating new ones. Momenta, which saw its shares surge 40 percent on the news, will gain $75 million up front and up to $188 million more in milestone payments in the deal. Under the terms of the deal, the two companies will collaborate on the development of four new generics. The two companies struck a deal on the cardiovascular drug M-Enoxaparin in 2003. The deal underscores the growing interest in the future of generic biotech drugs. The FDA has yet to outline a regulatory path to approval for copycat biotech therapies, but there is growing pressure from payers to get the process underway.

- check out The Boston Globe's report on the deal