Momenta Pharma (MNTA): Upgraded to Overweight from Underweight at Morgan Stanley More News related to MNTA Momenta Pharma (MNTA): Upgraded to Overweight from Underweight at Morgan Stanley Morgan Stanley Upgrades Momenta Pharma (MNTA) to Overweight Momenta Pharmaceuticals to Present At 2008 Morgan Stanley Global Healthcare Unplugged Conference Momenta Pharmaceuticals Announces Presentation of M118 Phase 1 Results At the American Society for Clinical Pharmacology and Therapeutics Annual Meeting Momenta Pharmaceuticals to Present At Cowen and Company 28th Annual Health Care Conference More News related to MNTA More News related to Upgrades Momenta Pharma (MNTA): Upgraded to Overweight from Underweight at Morgan Stanley Credit Suisse upgrades US Airways (LCC) to Outperform Citi Upgrades Masimo (MASI) to Buy J.P. Morgan Upgrades Big Lots (BIG) to Overweight Bear Stearns Upgrades Credit Suisse (CS) to Peer Perform More News related to Upgrades April 28, 2008 9:00 AM EDT
From Notable Calls
Morgan Stanley is upgrading Momenta Pharma (NASDAQ: MNTA) to Overweight-V and increasing their target to $22. Firm believes the stars could be finally aligning for the FDA approval of MNTA/NVS’s M-Enox in 2008-09 as the only genericversion of SNY’s Lovenox (blood thinner), potentially leading to: 1) 40-50% share of the $1.5+ billion U.S. Lovenox market, 2) peak potential earnings of $3/sh and 3) a share price of $40+. The downside risk of a long delay or non-approval is that the stock returns to $6.
Why are they upgrading now? Firm believes that the heparin (a complex sugar) contamination crisis may have given MNTA the unique opportunity to prove to the FDA its proprietary technology for characterizing complex sugars. Last week’s Nature publication shows that MNTA worked with the FDA to identify the heparin contaminant. They view this work as a game changer, underestimated by the Street. In our opinion, the FDA is now more likely to view MNTA’s technology as sufficient to show that M-Enox is the same as Lovenox (also a complex sugar) — a key regulatory hurdle and one they feel competitors Teva and Amphastar cannot achieve.
Notablecalls: This is a game-changing upgrade for this stock. Morgan Stanley has been neg on MNTA for quiet some time (UW rating) and now they are saying the stock could do $35+ under bullish scenario.
I expect to see a 10%-15% upside move in MNTA today.
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