Momenta Pharmaceuticals, Inc. (MNTA)

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Buy or Sell?


January 23, 2015
07:23 EDT MNTA Momenta downgraded to Sell from Buy at Maxim (Isn't there supposed to be a Hold in this sequence?)

January 22, 2015
11:52 EDT MNTA Momenta sell-off provides good entry point, says Brean Capital




Maxim Group downgraded Momenta Pharmaceuticals (NASDAQ: MNTA) from Hold to Sell with a price target of $7.00 (from $17.00) after the Supreme Court has sent the Copaxone fight over the validity of Teva's (NASDAQ: TEVA) patents back to the Court of Appeals Federal Circuit (CAFC) where the case will be heard over the next year.

Analyst Jason Kolbert commented, "Momenta has pronounced that they are shifting away from complex generics and refocusing efforts on biosimilars, such as Adalimumab a biosimilar of Humira (Abbie; ABBV-$62.98-NR) as well as multiple other immunoglobbulin-based products. The refocusing effort makes sense as developing multiple biological products may be more cost effective than retooling the company for each new complex generic (i.e. going from enoxaparin to copaxone). However, the transition will take time, and money, and Momenta has a high burn rate for a company with low revenues. Our models points to a diminished opportunity for generic copaxone, which has been the principal driver of our thesis."