Shares in Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) received a shot in the arm from a ratings upgrade issued by analysts at Barclays.
The stock jumped 12.49% and closed at $13.24 yesterday, after trading 1.53 million shares.
Analysts at Barclays improved their rating on Momenta from Equal Weight to Overweight, and raised their price target from $13 to $19.
Copaxone 40 mg could be a winner for Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA)
According to Barclays, MNTA’s partnership with Novartis on the multiple sclerosis drug Copaxone could result in the drug hitting the market as early as February next year, the expiry of the 30-month stay imposed by USFDA on generics.
Said Barclays: “Even with conservative assumptions on market penetration for the 40mg and currently marketed 20mg, the upside potential – above $35/share if generic exclusivity persists for MNTA and Sandoz – is too great to ignore. We expect better adoption of generics in 40mg since TEVA won’t have exclusivity on the preferred dosing regimen which has allowed restrictive contracting for the branded products.”
On the flip side, however, Barclays expect a valuation of $9 per share at the minimum for Momenta.
Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) needs a new partner for M923
Last month, Shire PLC (ADR) (NASDAQ:SHPG), which is partnering Momenta on the development of M923, a biosimilar version of Humira by AbbVie Inc (NYSE:ABBV), terminated the collaboration agreement.
Momenta has a period of 12 months to find another partner for developing M923, which is in a phase III study for treatment of chronic plaque psoriasis.
During this period of 12 months, Shire will, as per the contract, continue to fund the development program for M923.
Technically, the Momenta stock has remained range-bound since 2009, trading inside the band of $8 and $26. However, yesterday’s surge has pushed the stock into bullish territory and the daily chart shows it has crossed the three averages of 20-, 50- and 200-days.