Momenta Pharmaceuticals, Inc. (MNTA)

[DewDiligence]

MNTA diluted share count for valuation purposes:

At 6/30/15, MNTA had 68.8M basic shares issued (http://www.sec.gov/Archives/edgar/data/1235010/000110465915055823/a15-11889_110q.htm#CONDENSEDCONSOLIDATEDBALANCESHEE_065610 ).

In the 5/19/15 SEC filing for the public offering (http://www.sec.gov/Archives/edgar/data/1235010/000104746915004924/a2224849z424b5.htm ), MNTA disclosed 7.9M options issued at an average exercise price of $14.25. Inasmuch as MNTA is trading near the highest price in effect during the period in which these options were granted, I make the conservative decision to include all of the 7.9M options in my tally.

Therefore, my diluted share count for valuation purposes is 76.7M.

(I do not use the “treasury method” of calculating the diluted share count, which reduces the share count according to the price at which options are exercisable, because the straightforward method of counting all options without adjustment gives a more realistic view of the number of shares that would need to be cashed out in a buyout at a typical premium.)