Maxim Maintains Buy On Momenta As The Battle On Copaxone Continues
Maxim Group analyst Jason Kolbert today issued a note in which he reiterated a Buy rating on Momenta Pharma (MNTA) with a $17 price target. Momenta continues to battle Teva Pharmaceutical (TEVA) for the right to manufacture generic Copaxone. The company expects to win, but the analyst has no clarity on timing.
Kolbert wrote, “We believe MNTA is well positioned to benefit from the launch of a generic Copaxone (M356). However, the FDA approval of MNTA’s ANDA continues to be delayed as TEVA has filed it’s seventh Citizen Petition. Both companies will have oral arguments heard before the U.S. Supreme Court on October 15, 2014. During the 2Q14 EPS conference call, management stated that it will not comment on M356 launch plans until there is an FDA approval in hand. Management did say that a settlement with TEVA is one possible outcome. Generic Copaxone should eventually arrive, but timing is uncertain. A generic Copaxone may also represent a new alternative to other brands (expensive MS drugs) for patients and managed care, expanding the market beyond just existing Copaxone. On the call, Teva highlighted damage risk in the billions as a threat to generic makers”.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a 5.1% average return and a 51.4% success rate. Kolbert has a -17.8% average return when recommending MNTA, and is ranked #784 out of 3200 analysts.
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