Momenta Pharmaceuticals, Inc. (MNTA)

[wallstarb]

The issue at hand that people are now baking into the valuation is an expect cash burn of $25m +/- a qtr for the next few years based on the following from the CC - essentially ramping up expenses and at the same time decreasing revenues - the possible outcome of the Amphastar - is the only near term upside potential to the cash flow issues.

"As we discussed in our guidance for 2012, we expect our ongoing operating expense as a net of collaborative revenue to exceed the Enoxaparin royalty stream. Going forward, our Enoxaparin product revenue is expected to decline from the first quarter’s level due to the impact of the competitive product launch in January by Amphastar and Watson and potential for the pricing pressure from the authorized generic. So the $5 million net loss we recorded this quarter could possibly increase to the $10 million to $50 million range per quarter.

Our return to profitability will most likely come from the launch of our generic Copaxone, which if we’re not successful on our patent litigation, could be delayed until the expiration of the patent in the third quarter of 2015. During that time, over the next 3.5 years, our operating expenses will likely increase as we move up to six biosimilar product candidates through development and could further increase if we expand the number of products and our Baxter biosimilar collaboration or if we choose to develop biosimilars outside that collaboration. Our operating expenses are also likely to increase as M402 and potentially our (inaudible) or some other novel drug candidate advances in the clinic."