Is Momenta's Drubbing Overdone?
The FDA's warning letter issued on a key generic Copaxone 40mg manufacturing facility owned by Pfizer does not affect our long-term view of this no-moat drugmaker.
Despite fourth-quarter revenue coming in ahead of our expectations,
Overall results for Momenta's generic Copaxone 20mg product showed some improvement, earning just under $75 million in full-year 2016 revenue compared with $43 million in 2015. Sandoz, the company's contracted manufacturing partner, estimates that Glatopa 20mg now captures roughly 42% of the once-daily 20mg U.S. glatiramer acetate market, up from 30% during 2015. The lack of any other generic approvals on the older Copaxone 20mg version bodes well for Momenta’s prospects once the firm receives the 40mg approval, which remains the much larger opportunity, in our view.
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