UPDATE: Bernstein Research Reiterates on Momenta Pharmaceuticals Following 3Q13 Results Report

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In a report published Wednesday, Bernstein Research analyst Aaron Gal reiterated an Outperform rating on
Momenta Pharmaceuticals
MNTA
, and raised the price target from $20.00 to $24.00. In the report, Bernstein Research noted, “Momenta missed consensus expectations (-50c, -2c) on lower enoxiparin sales and higher R&D costs. MTNA reiterated previously given OpEx and cash burn guidance. There was no pipeline news and no additional disclosures beyond details on potential Baxter milestones in 2014. On the call the company was careful to provide no new information – deflecting all questions on progress on Copaxone review, preparation for launch, or marketing strategy as well as biosimilars progress. At 3Q14 end, Momenta had ~$276M in cash and is expected to earn ~$4-6M/Q from enoxaparin and spend ~$30M/Q on operating expenses. In 2014, MNTA could see additional cash from Copaxone generics and Baxter biosimilar milestone payments up to $26M. On a very conservative basis, earning ~$5M/Q on enox but no Copaxone or milestone payments, MNTA has 2.75 yrs of cash on hand. We rolled our model forward for earnings and raise our OpEx spend by ~$15M/yr. The net effect is to raise our '13 EPS 2c to -$1.98 and lower our '14 EPS 23c to $3.34.” Momenta Pharmaceuticals closed on Tuesday at $16.80.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsAaron GalBernstein Research
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