Morningstar | MNTA Updated Forecasts and Estimates from 07 Sep 2018
Momenta’s second-quarter performance provided no major surprises to us. We do not expect to change our fair value estimate, and we are reiterating our no-moat rating. Generic Copaxone competition continues to intensify, with Teva's ability to defend market share combined with Mylan's more desperate measures to cut the price of its generic version. Despite Momenta's potentially more limited opportunity in the generic Copaxone market, we still anticipate the company to benefit from further 40 milligram market share gains over time. The company continues to press forward with its strategic review, but a path forward has not been established, in our view. While the company ruled out a total sale, we think potential asset sales (including Momenta’s wholly owned biosimilar Humira asset) are still on the table. The strategic review has been taking longer than we anticipated, and we expect better clarity to emerge during the company’s research and development day on Oct. 11, 2018.We think the company’s future depends on its biosimilar and novel drug candidates, but Mylan's recent weak performance does raise concern about Momenta's partnership with the firm for many of its biosimilar products. Mylan announced it will evaluate strategic alternatives, which could theoretically have consequences on Momenta's business. Regardless, Momenta's biosimilar portfolio likely remains an attractive asset in the industry, and the company continues to advance its efforts, including initiating clinical trials for its biosimilar Eylea candidate. The company’s M254 hypersialylated IVIg program concluded a toxicology study which should enable the company to proceed with clinical trials as well. The company’s novel drug candidates hold promise, in our view, but we remain hesitant to incorporate them into our cash flow forecasts for now due to their early-stage development.
Momenta Pharmaceuticals is a biotechnology company focused on the discovery and development of biologic therapies for the treatment of rare immune-mediated diseases. The company's programs include: M281, which is a fully-human anti-neonatal Fc receptor (FcRn), aglycosylated immunoglobulin G (IgG1), monoclonal antibody, designed to reduce circulating human immunoglobulin G (IgG) antibodies by completely blocking endogenous IgG recycling via FcRn; M230, which is a recombinant trivalent human IgG1 Fc multimer; and M254, which is a hyper-sialylated immunoglobulin designed as a high potency alternative to IVIg, a therapeutic drug product that contains pooled, IgG antibodies purified from blood plasma.
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