Momenta Pharmaceuticals, Inc. (MNTA)

[jbog]

It's hard to make sense of what Momenta is up too and we might have to wait to see how it plays out.

Here's what I do know. Around the 1st quarter of 2014, Momenta stated that they entered a $75 million ATM which would ONLY be exercised to substitute the income it was to receive from the Copaxone roll-out until all legal items were settled. The income was going to be put in some lock-box until all the Teva legal objections were settled. Good Idea.

One year later with Copaxone still not on the market the brains at Momenta announced they not only exercised the ATM they have consumed the bulk of the value. To top it off the entered into a 2nd $75 million ATM with no conditions. Normal Momenta move.

In my view they found no buyers for the balance of the 2nd ATM and had to discount the value to obtain more capital. Remember the ATM was sold At-The-Market price with only a 2% fee payable to Stiffel whereas the new issue not only will pay higher fees they had to discount the share price.

Now with all that said the real question comes down to two things.

First, why were they so stupid that they didn't roll everything into one issue. Why did they change their original plan?

Second, why do they need this capital. Everything you've said so far has to do with they wanted to sell this before the shares zoom sky-high and I hate to tell you but that's counter to what any company would do. Also it makes me suspect they don't anticipate any meaningful income soon.