Maxim Group Downgrades Momenta Pharmaceuticals (MNTA) to Sell

Maxim Group downgraded Momenta Pharmaceuticals (NASDAQ: MNTA) from Buy to Sell with a price target of $7.00 (from $17.00) after the Supreme Court has sent the Copaxone fight over the validity of Teva's (NASDAQ: TEVA) patents back to the Court of Appeals Federal Circuit (CAFC) where the case will be heard over the next year.

Analyst Jason Kolbert commented, "Momenta has pronounced that they are shifting away from complex generics and refocusing efforts on biosimilars, such as Adalimumab a biosimilar of Humira (Abbie; ABBV-$62.98-NR) as well as multiple other immunoglobbulin-based products. The refocusing effort makes sense as developing multiple biological products may be more cost effective than retooling the company for each new complex generic (i.e. going from enoxaparin to copaxone). However, the transition will take time, and money, and Momenta has a high burn rate for a company with low revenues. Our models points to a diminished opportunity for generic copaxone, which has been the principal driver of our thesis."

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 $11.19 yesterday.

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