Replies to post #123720 on Biotech Values

[DewDiligence]

Thanks, IB. A cheat sheet on MNTA’s income taxes is in #msg-62215094 (accessible from the ReadMeFirst section on valuation and finances).

Since all of MNTA’s income comes from the US, once MNTA starts paying income taxes, the tax rate will be the federal + Massachusetts statutory rate with some offset from the federal R&D tax credit. If you figure 35%, you’ll probably be close enough for investment purposes.

[DewDiligence]

what will Momenta do with that $400 million in cash at the end of the year. Any chance of a partial share buyback?

No chance whatsoever of a share buyback, IMO. With its growing cash hoard, MNTA will do one of the following:

• Step up R&D on FoB programs.

• Embark on another branded-drug program.

• Build (or acquire) manufacturing facilities.

• Put the money in fixed-income securities until they come up with a better idea.

Or some combination of the above items.