Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, generic-drug specialist Momenta Pharmaceuticals
With that in mind, let's take a closer look at Momenta's business and see what CAPS investors are saying about the stock right now.
Momenta facts
| Headquarters (Founded) | Cambridge, Mass. (2001) |
| Market Cap | $587.4 million |
| Industry | Biotechnology |
| Trailing-12-Month Revenue | $64.09 million |
| Management |
CEO Craig Wheeler (since 2006) CFO Richard Shea (since 2003) |
| Return on Equity (Average, Past 3 Years) | (45.4%) |
| Cash/Debt | $65.7 million / $3.1 million |
| Competitors |
sanofi-aventis
Teva Pharmaceuticals |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 93% of the 437 members who have rated Momenta believe the stock will outperform the S&P 500 going forward. These bulls include dtor and All-Star TSIF, who is ranked in the top 0.5% of our community.
Just last week, dtor noted that Momenta "has spent almost 10 years developing the infrastructure to produce new generics on [almost] an assembly line basis." Our CAPS member concludes: "Traditional numbers on [generic] market share don't apply -- their technology forms a VERY LARGE moat."
Currently, Momenta trades at a forward P/E of 6.9. That's a discount to competitors sanofi (7.6), Teva (10.2), and Watson (13.4), as well as big pharma plays like Pfizer
CAPS All-Star TSIF elaborates on the bargain opportunity:
It dropped 30% on word that [Teva] received an FDA response from the FDA on a generic version of Momenta's only current drug, Lovenox. Teva reported that FDA questions appeared to be miner. ...
Complete responses, even if minor take time and Momenta may delay [Teva] production further by pursuing patent litigation, (which they are unlikely to win, but could use to delay). Any delay is pure cash to Momenta's balance sheet. In the meantime, Momenta will continue to build out its generic portolio, most likely with a play back against [Teva] on one of their current drugs, [Copaxone] for multiple sclerosis. This could be a long term play waiting for one of several possible catalysts, or it could be an exit on another mood swing.
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