Momenta Pharmaceuticals, Inc. (MNTA)

[jbog]

“Option creep” is not a matter of great consequence for MNTA investors in the overall scheme of things.

In any case, the discussion of Palo Alto’s request is academic; I guarantee that MNTA has no intention of buying back shares.

Considering that Momenta has 4.x million options granted and not exercised coupled with around 7 million shares in the 2004 employee program available to distribute when do you think option creep comes into play?

Keep in mind they put 1.99 million shares into the 2004 option pool every year.

So they have the ability to distribute 20% more shares and dilute by 4% a year (40% over the next 10 years) until the program ends in 2013. Maybe Palo's point was to make a 'shot across the bow' for Momenta to consider when they design the 2014 Employee program.