Morningstar Rating

Stock Research and Analysis

by Michael Waterhouse

Bulls Say

Momenta's technology allowed it to become the first approved manufacturer of generic Lovenox, a complex low-molecular-weight heparin. The company may repeat that success with its generic Copaxone, currently in development.
Thanks to its Baxter partnership on six of its biosimilars in development, Momenta's molecular characterization capabilities should make it a notable competitor in the attractive biosimilars market.
Momenta's novel biological drug in development for pancreatic cancer could have blockbuster potential. Read more 

Bears Say

With limited cash flow, no manufacturing capabilities, and no salesforce, Momenta's success depends largely on manufacturing and marketing partnerships.
Momenta's biosimilar strategy is a large gamble. If its higher development costs for characterization don't result in advantages for interchangeability or smaller clinical trials, then few companies will be motivated to license Momenta's products.
Although Momenta has garnered success in complex generic drugs with a high barrier to entry, the company has little pricing power in selling drugs without patent protection. Read more 

Management

Despite the company's relatively short history, we give Momenta a Standard Stewardship Rating. As a high-risk small biotech, we think management's capital-allocation decisions are commensurate with its peers. We like management's use of tiered royalty   Read more 

Profile

Momenta is a biotechnology company based in Cambridge, Mass. Using technology developed at the Massachusetts Institute of Technology, it focuses on the characterization   Read more 

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