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MNTA: Deutsche Bank Coverage (from 2009)

Deutsche Bank Initiates Coverage on Momenta Pharmaceuticals (MNTA) with a Buy; Believe M-Enoxaparin & M118 Will Be FDA Approved

September 18, 2009 8:33 AM EDT
Deutsche Bank initiates coverage on Momenta Pharmaceuticals (Nasdaq: MNTA) with a Buy. Price target $15.

Deutsche analyst says, "We rate Momenta a buy based on our belief M-Enoxaparin & M118 will be approved by the FDA...We believe multiple Lovenox generics are likely to be approved in 2010+...We believe comments from the FDA suggest that if a generic uses the same starting product as the brand, complete characterization may not be required. In addition, we believe Xa:IIa activity assays will be sufficient to prove therapeutic equivalence. We see the fair-valuation of MNTA under this scenario at $18/share...We believe M118 is an undervalued asset and provides downside protection."

"Our $15 price target is based on a probability-adjusted sum of the parts analysis. We place a 50% probability that M-Enoxaparin is approved along side other generic Lovenox applicants (we estimate the fair valuation under this scenario is $18), a 40% probability that M-enoxaparin is rejected (we estimate the fair valuation under this scenario is $5), a 9% probability M-Enoxaparin approved along side a branded generic (we estimate fair valuation under this scenario is $34) and a 1% probability M-Enoxaparin is the only generic on the market (we estimate fair-valuation under this scenario is $66)."

To see more analyst ratings on MNTA Click Here.

Momenta Pharmaceuticals, Inc., a biotechnology company, specializes in the structural analysis of complex mixture drugs.