Maxim Group Upgrades Momenta Pharmaceuticals (MNTA) to Hold

Maxim Group upgraded Momenta Pharmaceuticals (NASDAQ: MNTA) from Sell to Hold.

Analyst commented:

• Momenta announced a collaboration with Mylan N.V. (MYL-$51.61-NR) for the development and commercialization of six biosimilars, including M834 a biosimilar of Bristol's (BMY-$65.27-NR) Orencia.
  • The deal terms include $45M upfront and up to $200M in milestones. The two companies will split (50/50) the development costs & profits. Mylan will lead the commercialization effort and Momenta will have opt-in rights.
  • Recall that one element of our sell thesis was based on our view that a move away from complex generics (copaxone) to biosimilars was a significant transtion for Momenta. Expertise in complex generics just isn't the same as biosimilars. The fact that partner Baxalta (BXLT-$40.46-NR) opted out from additional biosimilars after M923 (biosimilar Humira) for us was a red flag. If that's true than in all fairness today's news is a green flag (if there such a thing), aka: A $45M up front commitment from Mylan is validating.
• Our model has been adjusted to reflect the full value of the cash payment and milestones. The overall picture for Momenta just got a bit better.

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 $13.56 yesterday.

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