Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA)

CAPS Rating: 4 out of 5

A biotechnology company specializing in the detailed structural analysis of complex mixture drugs of the development of generic or biosimilar versions of complex drug products as well as to the discovery and development of novel drugs.

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Member Avatar AsianMatter (43.33) Submitted: 4/2/2014 9:17:58 PM : Outperform Start Price: $11.52 MNTA Score: -9.71

IZ

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Member Avatar zzlangerhans (99.77) Submitted: 3/29/2014 9:31:05 PM : Outperform Start Price: $14.20 MNTA Score: -29.29

It's a new year and Momenta is still one of the more complicated companies on my watchlist. Some things never change.

Generic enoxaparin hasn't been a significant contributor to cash flows for a year and a half. Momenta is back to losing 25M a quarter as they await approval of generic Copaxone, their next bridge to sustained positive cash flows. It's unclear for how long and to what degree generic Copaxone will keep Momenta out of runway troubles; Teva has reported strong sales of their new higher dose formulation and several other companies are developing their own generics. For the long-term, Momenta lives or dies by their biosimilar collaboration with Baxter, which is still in the embryonic stages. The heparin mimetic M402 for pancreatic cancer is a wild card, with data from a phase I/II trial expected in the first half of this year. I'd hope that a bump from the approval of generic Copaxone gets me out of this pick before the unpredictable M402 catalyst.

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Member Avatar TerryFool (< 20) Submitted: 3/1/2014 11:09:03 AM : Outperform Start Price: $14.44 MNTA Score: -30.95

MNTA BP $14 TP 19 EPS 1yr 200%

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Member Avatar Kanga88 (< 20) Submitted: 2/25/2014 12:38:51 PM : Outperform Start Price: $17.51 MNTA Score: -43.60

The business proposition and execution of Momenta has been solid, and it is a matter of time that the company will emerge as an innovative leader in the 21st century pharmaceutical industry. Born in the biotech labs of MIT, MNTA has been developing and accumulating advanced proprietary technology which allows it to produce generic drugs cheaper and hopefully purer than the originals. This will allow it to play leadership roles in the US where costs of medicine should account for 10% or so of the running away health costs!
As a bonus, it also has invested in R&D platforms for discovering new drugs, hopefully with breakthroughs in the future too.

Its path to successful commercializations has been full of obstacles, including legal challenges and competitive pressures. But only patient long term investors should invest in biotech stocks-- Caveat emptor !

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Member Avatar manirg (51.73) Submitted: 12/24/2013 10:28:22 AM : Outperform Start Price: $17.71 MNTA Score: -45.55

great potential , very undervalued

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Member Avatar rknapton (< 20) Submitted: 8/22/2013 4:35:38 PM : Underperform Start Price: $14.90 MNTA Score: +44.53

Short. Pharma company whose revenues are getting slaughtered.

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Member Avatar bclear2 (< 20) Submitted: 5/6/2013 3:16:55 AM : Outperform Start Price: $11.27 MNTA Score: -25.16

buying opportunity for a company that has developed a novel platform that greatly speeds the development and characterization of complex biological compounds.

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Member Avatar solanZRaider (< 20) Submitted: 4/27/2013 12:48:14 AM : Outperform Start Price: $12.87 MNTA Score: -39.02

z

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Member Avatar jimmers42 (< 20) Submitted: 10/5/2011 10:09:12 PM : Outperform Start Price: $12.13 MNTA Score: -81.13

innovation and patents will carry this one along way...potential buyout if patents hold up.

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Member Avatar airheadmw (< 20) Submitted: 9/20/2011 7:03:46 PM : Outperform Start Price: $11.61 MNTA Score: -68.96

We still have time!

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Member Avatar anchor68 (74.51) Submitted: 9/15/2011 8:09:04 PM : Outperform Start Price: $17.70 MNTA Score: -99.08

One word says it all: Generics- People not only want Affordable medications, they Demand it!!!

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Member Avatar shahart (51.34) Submitted: 9/6/2011 3:37:50 PM : Outperform Start Price: $16.27 MNTA Score: -100.50

very speculative play, since no one can really tell what will happen in the upcoming trials, and what will future FDA decisions will be.
But with current price at 800 Million dollars, Cash equivalents of 350 Million dollars, and recent year earnings of about 200 Millions, the possible profits out-weight the possible losses.

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Member Avatar mopoff (< 20) Submitted: 9/2/2011 12:16:06 PM : Outperform Start Price: $16.53 MNTA Score: -97.99

HG

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Member Avatar mikephilipsoh (< 20) Submitted: 6/8/2011 4:45:16 PM : Outperform Start Price: $19.48 MNTA Score: -95.33

This company has a number of drug candidates in its pipeline.

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Member Avatar Blackarrow1969 (36.46) Submitted: 5/31/2011 10:58:42 AM : Outperform Start Price: $19.84 MNTA Score: -90.27

They're heavily into generic drugs, which should position them well in coming years.

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Member Avatar t0bes (< 20) Submitted: 5/30/2011 12:34:54 PM : Outperform Start Price: $20.00 MNTA Score: -90.07

Good value

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Member Avatar djnitrogen (< 20) Submitted: 4/4/2011 2:47:15 AM : Outperform Start Price: $15.81 MNTA Score: -77.41

In the interest of saving time I am going to just include some information I recently sent to a friend in an email:

Here is some info I put together on MNTA a while ago. You should read the entire thread. Nothing I said below has really changed. Nothing has happened to the negative side, and the stock has still gone down even though they are making money hand over fist. I think it is due for a pop and we are in a buying opportunity, and I think it is a great long term investment on top of that. This is my biggest holding. If you look at where they were a year ago

• No drugs approved, surviving on R&D money
• $75M in debt

And now…
• Sole generic on a blockbuster drug
• All debt paid
• Close to $200M in the bank
• Increasing cash position by about $50M per quarter
• Closer to approval on another major drug

And still about the same stock price ($700M ish market cap). This is why I say it is due for a pop.

The big short term risk on this stock is that they have only one drug on the market and the pipeline doesn’t have the next for a year out or so (although that could be 0-2 years). The current drug is a generic for a blood thinner Lovenox. So the only companies that can sell it are MNTA and the original drug maker. While there are just two manufacturers on the market the price and profits are huge. There is one other company that has a potential for approval and that is TEVA. If TEVA gets an approved drug MNTA will probably swing to a loss. MNTA sells the drug through a large partner, and the agreement with the partner is that they get 45% of the profits while they are the only generic, and if another is approved that drops to a 10% royalty. Big difference.

I have spent a long time looking into this, and I am getting more confident that TEVA will never get approved and MNTA will stay the sole generic. If that is the case, MNTA will make close to $200M/year in profits for several years to come (until something better comes along). The approval process takes about seven years so they would have protection for a long time. At a $200M/year profit rate the company should be valued at $2B (conservatively). That's about 3x what they are now. I could make a convincing argument for double that (P/E of only 20, high growth prospects, etc.).

The reason I don't think TEVA will get approved is because they said they would in Aug, Sept, Oct, Dec, Jan, and finally said they would comment no further until they get approval. I have read what the TEVA CEO says about this in the last few conf call transcripts and it sounds like a lie. The latest deficiency letter TEVA got from the FDA puts their approval out 3-18 months from February (12 is the industry average for the type of rejection they got). And it could be rejected again. And it could be in this state forever. I spent a long time looking at investment boards on this, and it looks like the experts on the boards feel there is a good chance TEVA will never get approved. This is a very complex drug made from many different very large molecules derived from pigs’ intestines. Even the original manufacturer can’t tell you exactly what is in the drug because they don’t know themselves, but MNTA can. This is what their technology can do. Analyze and reverse engineer these combinations of large molecule drugs. TEVA’s version of the drug is also from pig intestine and may work like Lovenox, but they have to prove it is the same exact same combination of molecules and behaves the same exact way. It looks like the TEVA drug is already sold as a generic in other countries, but the FDA has yet to say it’s the same. The speculation on the boards is that this is a drug made by an Italian company and already sold in other countries. I have seen some scientific journal summaries from a few years back that compare Lovenox to generics sold in other countries and they do have different characteristics. So I think TEVA’s version is something that scientific journals is staying is not the same as branded Lovenox. Drug companies are very secretive about this kind of thing so I don’t have a way to prove it, but if you ask me to connect the dots this is what I think is going on.

Worst case is MNTA accumulates cash until the TEVA approval. Under this circumstance I think the bad news is pretty much priced in already (based on what I say about where they were a year ago and the stock price not moving.

Best case is MNTA stays the sole generic, they get the next drug to market, and get a partnership with a major drug company (all this could happen within the next 18 months or so). If these stars align this stock could be worth as much as 10x what it is now. So big upside possible with limited downside risk.

One last comment is that the FDA still has not sorted out a pathway for biologic drug approval. These drugs are just starting to come off patent protection. It could be they have two approval levels (exact replacement, and similar). When the FDA sorts this out it will probably bode well for MNTA. They are the only company that has successfully gotten an approval as a biologic replacement.

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Member Avatar KirkDCJ (< 20) Submitted: 2/23/2011 12:02:25 PM : Outperform Start Price: $13.20 MNTA Score: -67.19

Cheap at the price with room to run.

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Member Avatar chimpcontest (< 20) Submitted: 2/21/2011 2:25:39 PM : Outperform Start Price: $13.45 MNTA Score: -65.94

nilesgold haiku

Lovenox sales are strong

Copaxone approval forthcoming

Short squeeze for the win

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Member Avatar dgoldmeier (< 20) Submitted: 2/9/2011 5:22:29 PM : Outperform Start Price: $13.58 MNTA Score: -68.37

becoming a cash cow. MNTA is undervalued even if Teva started selling Lovenox tomorrow. The future looks good by developing drugs with high revenue and mad growth.

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