Replies to post #114841 on Biotech Values

[joethdo]

A good article but leaving out Copaxone as a catalyst is mystifying.

[pcrutch]

I support them writing an article about Momenta, but all these financial journalists are just so mediocre. As someone pointed out, how did they fail to mention that Copaxone could be approved this year? Also, they seem to have forgotten to mention that MNTA is suing TEVA, in regards to Lovenox development. The lack of any detail is astounding.

I expected much higher quality out of Barron's. This was written at about the level the Motley Fool or the Street.com puts out. In terms of bond status, I give them a BBB+. Motley and the Street are CCC and below; straight up junk.

[DewDiligence]

From the same article:

A year ago, the company was lucky to be selling $5 million a year in products.

Actually, a year ago MNTA was not selling anything—its revenue was from in-house R&D reimbursed by NVS.

The trajectory of the profit performance is remarkable, reports Robert Auer, senior portfolio manager of the SBAuer Funds.

Well, duh, that kind of thing can happen when a drug is approved for marketing. Geez.

[xray72]

One has to keep in mind as well that the 7x multiple of this years expected earnings is already based on the assumption of Teva entering the Lovenox market this year.
If this is not the case the current multiple is closer to 3x.
Given the uncertainties surrounding Momenta (and the many positive events that could happen anytime; t-lov failing, M-Copax, M118, etc.) I don't give much to 2012 earnings estimates.