Momenta (MNTA) Blood Thinner Could Thicken Your Portfolio - Barron's
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Momenta Pharmaceuticals (Nasdaq: MNTA) is seeing upside today, following a positive mention in Barron's.
Their primary product, M-Enox, a generic version of blood thinner Lovenox, is raking in the dollars for Momenta. M-Enox has a 45% position in the market. Last quarter, Momenta said that it sold $170 million of M-Enox, while recording net profit of $36.3 million, or EPS of $0.77.
One analyst said that Momenta would have been lucky to sell $5 million per of products in the same period last year, marking a remarkable turn-around for the company.
Barron's says that the stock is cheap, trading at just 7x earnings. With projections of 160% EPS growth through 2011, the stock still comes in under the industry at 13x FY12 estimates.
Momenta develops M-Enox with Novartis' (NYSE: NVS) Sandoz. One risk to the downside for Momenta is that Teva Pharmaceuticals (Nasdaq: TEVA) recently requested approval from the U.S. Food and Drug Administration for a competing blood thinner.
But Teva is currently being held up after receiving a "deficiency letter" from the U.S. FDA, and no one knows when the letter will be addressed.
The result could be detrimental for Momenta, as their agreement with Sandoz provides for a substantial drop in royalties if a competing product enters the market. Investors have responded by sending shares from yearly highs in the mid-$20s to just about $12 currently.
Regardless of the outcome, some analysts are bullish on Momenta inking one or more lucrative partnerships in 2011.
MNTA shares are 0.9% higher today.
Their primary product, M-Enox, a generic version of blood thinner Lovenox, is raking in the dollars for Momenta. M-Enox has a 45% position in the market. Last quarter, Momenta said that it sold $170 million of M-Enox, while recording net profit of $36.3 million, or EPS of $0.77.
One analyst said that Momenta would have been lucky to sell $5 million per of products in the same period last year, marking a remarkable turn-around for the company.
Barron's says that the stock is cheap, trading at just 7x earnings. With projections of 160% EPS growth through 2011, the stock still comes in under the industry at 13x FY12 estimates.
Momenta develops M-Enox with Novartis' (NYSE: NVS) Sandoz. One risk to the downside for Momenta is that Teva Pharmaceuticals (Nasdaq: TEVA) recently requested approval from the U.S. Food and Drug Administration for a competing blood thinner.
But Teva is currently being held up after receiving a "deficiency letter" from the U.S. FDA, and no one knows when the letter will be addressed.
The result could be detrimental for Momenta, as their agreement with Sandoz provides for a substantial drop in royalties if a competing product enters the market. Investors have responded by sending shares from yearly highs in the mid-$20s to just about $12 currently.
Regardless of the outcome, some analysts are bullish on Momenta inking one or more lucrative partnerships in 2011.
MNTA shares are 0.9% higher today.
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