Momenta Pharmaceuticals, Inc. (MNTA)

[DaveAu]

BMO on AMP (July 21 research report):

Potential legal awards could be major upside. Amphastar is in line
to recover all or largely all of a $100 million bond a competitor had
to post surrounding prior litigation. We estimate there is a 75%-
plus chance that Amphastar will receive between $50 million and
$100 million. An additional qui tam suit under way could result in
hundreds of millions more.

Two pending litigation developments could be substantially meaningful.
• Amphastar could receive a portion or all of a $100.1 million bond
from Momenta/Sandoz within the next 12-18 months.
• Amphastar’s qui tam suit against Aventis could result in a significant
payout, potentially as much as $500 million, but timing
is uncertain. At the current price, we believe AMPH shares attribute
a low likelihood to Amphastar receiving this payout, but
we estimate there is a 50/50 chance Amphastar benefits from a
significant settlement and our confidence in this will likely grow
as the trial moves closer to a final decision this fall.
Amphastar has proven itself as a trusted partner and respected player
in generics.