UBS Maintains a 'Buy' on Momenta Pharmaceuticals (MNTA); Attractive Despite Upcoming Binary Events

UBS maintains a 'Buy' on Momenta Pharmaceuticals (NASDAQ: MNTA) price target raised from $19 to $22.

UBS analyst said, "We now include the upfront fee, risk-adjusted milestones and sales-based royalties from Baxter (NYSE: BAX) in our model. We are also increasing the R&D run-rate by $15M/year effective 2012 to reflect the increases in activities for biosimilars. For 2012 we are raising our EPS estimate from $0.09 to $0.25, mainly driven by $15M in upfront fee which we assume will be recognized in 2012."

"The two near term binary events incl. (1) a decision on the appeal to the PI on Lovenox in late Jan/Feb (hearing is on Jan 24th) on which we remain hopeful and (2) the Copaxone trial decision likely in 1H12 where we assume a negative outcome. Longer term, we believe MNTA has potential for significant shareholder value creation based on its biosimilars play."

For an analyst ratings summary and ratings history on Momenta Pharmaceuticals click here. For more ratings news on Momenta Pharmaceuticals click here.

Shares of Momenta Pharmaceuticals closed at $19.38 yesterday.

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