Maxim Group Reiterates Sell on Momenta (MNTA)

Maxim Group analyst, Jason McCarthy, reiterated his Sell rating on Momenta Pharmaceuticals (NASDAQ: MNTA) as it announced that the necuparanib phase II study in pancreatic cancer, which was halted for toxicity-related issues, has been cleared to resume enrollment by the data safety monitoring board (DSMB). The move to biosimilars is expensive (a big pharma game) and, with no partners, has sent Momenta to the market to raise funds in 2H15, diluting investors.

Momenta does anticipate a potential launch as early as 2018 but other big pharma companies remain far ahead, including Amgen, which has already submitted its BLA for a biosimilar Humira. Additionally, more generic competition (20 mg and 40 mg) is looming from Mylan, Pfizer and possibly biosimilars.

Oncology data are a late 2017E event for Momenta and for now, the story for Momenta continues to be generic Copaxone, where sales have not impressed. The opportunity continues to shrink, as Teva converts patients to 3x weekly.

No change to the $7 PT.

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 $16.11 yesterday.

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