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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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About the Author

Michael Waterhouse

Sector Strategist
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Michael Waterhouse is a healthcare strategist for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers specialty pharmaceutical and life science and diagnostic companies.

Before joining Morningstar in 2010, Waterhouse was a research biologist for the Centers for Disease Control and Prevention. He was also a volunteer in the Peace Corps.

Waterhouse holds a bachelor’s degree in biology from the University of Georgia. He also holds a master’s degree in business administration from the University of Minnesota, where he participated in the Carlson Funds Enterprise, a student managed investment fund.

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