Momenta's market cap currently stands at $414 mil which isn't exactly chump change.
Really? Based on what? A market cap is all relative to potential sales and earnings and the timing and likelihood of those sales and earnings in my book. A $100 million market cap can be expensive while a $400 million market cap can be cheap, depending on the opportunity for the company.
I would argue that the $400 million market cap for MNTA is actually pretty darned cheap given the significant market opportunity for just a generic Lovenox (i.e., ignoring the rest of the pipeline). What matters is of course whether the FDA grants approval, whether MNTA gets sole approval for a generic Lovenox, and the timing of that approval. I'm in the camp that believes a $400 million market cap for MNTA will look quite cheap in hindsight if those 3 matters go in MNTA's favor. And I still think the stock will be a good deal higher even if multiple generics are approved as we would still be looking at significant revenues for MNTA in the very near future.
You are right it seems a little over priced sicne they did the pipe. But it should have been able to hold the 10.75 placement price.
Just shows a lot of weakness.
As an example THLD which did a $35m pipe which issued 110% new shares actually did it at a premium and is now nearly 100% over the PIPE price. So it shows there was demand for it. Those shares arent even registered shares - I'm thinking some of the MNTA pipe buyers may be selling in the open market to limit their losses since it broke the 10.50 level.
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