Biotech Values

[DewDiligence]

MNTA Share Count for Valuation Purposes

Including the shares issued in the latest financing, MNTA now has 58.2M diluted shares for valuation purposes.

Discussion: There were 49.4M shares outstanding before the latest financing, so adding the 4.2M shares issued in the financing (including 0.2M shares from the underwriter’s overallotment) brings the number of shares outstanding to 53.6M. Additionally, there are 4.6M employee options. The highest exercise price for a consequential number of employee options is $23.62, which is a share price I consider well within reach during the next year or so; therefore, I include all 4.6M of these options in the share count I use for valuation purposes, which brings the figure to 58.2M. (MNTA will receive cash when options are exercised, offsetting some of the dilution, which could be accounted for using the so-called treasury stock method; however, as a first-order conservative approximation, I ignore the cash proceeds from option exercises in the arithmetic here.)

Source: http://sec.gov/Archives/edgar/data/1235010/000104746910010259/a2201303z424b5.htm#de10802_description_of_capital_stock (page S-5)

http://sec.gov/Archives/edgar/data/1235010/000104746909004743/a2192562zdef14a.htm (page 34)