Why Momenta Stalled
Nov 7th 2012 6:43PM
Updated Nov 7th 2012 6:48PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Momenta Pharmaceuticals (NAS: MNTA) were down more than 8% today after a massive double miss that was blamed on weak royalty revenue.
So what: Momenta reported a $0.51 loss per share on revenues of just $5.1 million, both significantly lower than the Street's consensus figures that called for $0.27 in losses per share on $16.5 million in quarterly revenue. The company's 2013 guidance, which projects a cash burn of about $90 million for the full year, seems to assure another year of hemorrhaging unprofitability.
Now what: No investor likes to hear that a CEO was disappointed in his company's results, but Momenta CEO Craig Wheeler said just that when discussing the lackluster royalties earned by enoxaparin sodium injections. Whether it's the result of "a more competitive multi-player dynamic," as Wheeler suggested, or simply a lack of sufficient interest in Momenta's products, it's tough to call a buying opportunity when Momenta remains highly valued speculative biotech company with minuscule revenue. Until Momenta starts advancing another drug with better prospects through the FDA approval process, there seems little reason to invest.
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The article Why Momenta Stalled originally appeared on Fool.com.Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter, @TMFBiggles, for more news and insights. The Motley Fool owns shares of Momenta Pharmaceuticals. Motley Fool newsletter services have recommended buying shares of Momenta Pharmaceuticals. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.
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