Momenta Pharmaceuticals, Inc. (MNTA)

[10nisman]

Let's hope that something happens soon because before we know it Momenta will run through its tax credits and the street will have to factor in income taxes.

Income taxes are not an issue. Assuming a $225M per quarter mL run-rate, MNTA will not burn through its NOL's until sometime in Q1 2012. Also, most analysts covering MNTA do not have mL maintaining sole generic status past Q2 2011. Therefore analysts will likely have to raise their estimates come this summer.

I have MNTA earning after tax profits of approximately $2/share in 2012 under a sole generic situation. Based on that estimate MNTA is currently trading at a forward PE of 5 (net of cash and AR) and a forward PE of 4 (net of cash, AR and NOL's).