Replies to post #110337 on Biotech Values

[Mpower]

Craig Wheeler and MNTA management don't strike me as particularly "investor friendly." This is not meant to be an attack on their character, but rather, explains what I believe to be their calculus when making strategic business decisions.

In other words, if Craig is mulling raising money (irrespective of the rationale), the price per share is probably not a important factor in making that decision. He will raise, as needed, to support a important business decision (irrespective of what the cost is to shareholders).

That being said, I do believe the stock will (counter-intuitively) strengthen from this point forward. We may see some initial weakness tomorrow, but i suspect the stock will bounce back aggressively after it bounces off the lows. I believe the weakness over the past few weeks was not the result of a TEVA tL approval expectation, but rather, an expectation that the company would raise.

MNTA's coffers are brimming with $$$'s, what a great time for MNTA employees. Lets hope shareholders will be able to share the glory soon. :)

[iwfal]

I think the risk of a bear market for stocks in general was a bigger factor in the timing of MNTA’s financing than concerns about Teva’s Lovenox.

If we knew they had to raise capital and it was just a matter of when then this argument would make sense to me. But if they have high confidence of being sole generic... then they would never have to raise capital in the forseeable future. So the market becomes immaterial. I think it is pretty unescapable that they have a significant worry that tL gets approved in the next few months.

[WID]

I have read a few opinions in here and I just try to put up a quick opinion of myself to get your comments.

First, I think that MNTA does not want to create any controversial relationship with FDA so they do something to view as they are clueless about what happens on TEVA application on the t-lovenox front and MNTA application on the m-Cop.

Rasing more capital is not a famous thing to do with existing shareholders but it is not a bad thing either.

So, why MNTA wants to raise more capital at the time that no one will think that they ever need capital for general business purposes?

If MNTA knows for sure that t-lovenox never gets approved and they just sit there to collect revenue and share profits with NVS, this will make both MNTA and FDA looks bad--because Amphastar and/or TEVA will think that MNTA have internal info from FDA-- That will make both MNTA and FDA look bad... Amphastar already filed complains about MNTA/FDA relationships and TEVA has been whining on the m-lovenox applications.

In order to be fair and balanced, MNTA will do the unthinkable things by raising more capital for general purposes. By doing this, MNTA will preempt complains from both TEVA, Amphastar and/or Mylan (if m-Copaxone gets the nod soon). All the suspicious relationships between MNTA and FDA will cool down for the time being while shareholders may take a little hit with the stock price.

What do you think? Please comments!

[oc631]

I think the risk of a bear market for stocks in general was a bigger factor in the timing of MNTA’s financing than concerns about Teva’s Lovenox.

Under the sole generic agreement MNTA has incredible cash flow for a company it's size. The market timing spin doesn't work for me.