Replies to post #3803 on Momenta Pharmaceuticals, Inc. (MNTA)

[jbog]

Palo Alto comes across in this incident as clueless, disingenuous, or both.

Let me sum this up:

* We believe Momenta will be the sole lovenox generic for the foreseeable future.

* Momenta has repeatedly said that expenses will stay relatively constant with minor increases.

* Momenta will not move the major portion of the FOB program or M118 forward without a partner.

* We believe Momenta will become the sole copaxone generic in the future.

Momenta now has an abundance of cash and will continue to add to it on a quarterly basis so why wouldn't this be a appropriate time for a buyback? Let's ask ourselves if Momenta purchasing its own stock wouldn't be a better long term investment than government paper at this time.

Palo Alto invested in Momenta for one reason and that's a return on their investment (3.5 million shares). Evidently, at this point Palo Alto must have the impression that Momenta is not using its capital appropriately or in the best interests of the stockholders.

[MadCityCyclone]

You'd think. But I've always wondered why shareholders didn't object when GTCB, a profitless company, bought back their shares from Genzyme, and then sold multiples of those shares on subsequent lower and lower and lower priced financings. I don't recall your objections to that malfeasance, dd. I guess we all live and learn, aye?

[flatlander_60048]

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Palo Alto comes across in this incident as clueless, disingenuous, or both.
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My wife and I were on vacation in Boston and decided to attend the meeting. I think Palo Alto might have been slightly disingenuous. I don't think they believe that MNTA will initiate a significant buy back even though they asked for it. I thought they want management to realize they are keeping close tabs on all the sources of dilution between the options and shelf offering. My take is that this was meant to make management think twice about further dilution. Palo Alto's suggestion that the buybacks be made to offset the issuance of additional options seems reasonable (especially from the their perspective of having to answer to investors on a quarterly and/or annual basis).

CW reiterated that the offering was made based on information at the time including Teva's statements that they would launch in the near future.

Most of the information presented was a rehash of recent presentations. However, I thought CW went into some detail into why it has been hard to partner M118. Basically he discussed the size of the trial which would be required for this drug. I thought he estimated the cost of clinical trials at $300 million (This is from memory). He was pretty emphatic that MNTA would not go it alone despite the their improving cash situation. Rocky, I'd be interested in your take on CW discussion of M118. I'm not sure if I'm recalling the cost of the trials correctly.

FL