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Momenta Pharmaceuticals Inc. Message Board

  • investorgold2002 investorgold2002 Aug 21, 2011 1:18 PM Flag

    Buyback ? Shea

    Why is Rick Shea and this management misleading shareholders ? When asked about share buyback, why is he saying "we can take action that will cause temporary pop in stock"

    I don't understand why buying back an undervalued stock for its existing shareholders results in TEMPORARY price increase. <<<<It will result PERMANENT increase in value for shareholder>>>>>. If the company is undervalued based on it's lovenox and copaxone potential earnings, use company's cash to buyback undervalued shares would result in more value for existing shareholders.


    Instead , they are saying they will throw most of this cash to FOB (which may take easily 6 years to get a drug launch-considering characterization work, clinical work, regulatory work, FDA review time,etc) and nobody knows if interchangeability is even possible. Shea says it will take >100m to develop 1 FOB

    This management cares about their jobs too much and doesn't want to do the right thing for shareholders

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • When is the "big strategy" on what they will do with cash due ?

      Will these guys sit on it for another 2 months working on "big strategy" ?

    • here is the point on the crazy non shareholder friendly copaxone stock bonus it is on Approval not Launch

      momenta could get approved and not launch because of unsettled patent issues, mylan could also be approved and teva launches an AG all of which would greatly reduce the value of copaxone generic, but board doesn't care CW still gets paid.

      My main issues is that when this stock bonus was granted the ANDA was all ready handed over to sandoz and filed at the FDA for over 30 months so one would think (and the company has said in conferences) that approval should be coming any day now. for the board to grant CW and the rest of executive management a bonus at this time (over $2m to CW alone) it could only mean their is still significant heavy lifting to go. Really hurts the credibility of management.

      Senior management should stop presenting at conferences which has created zero shareholder value and focus on BD full time I will not stand by for another zero this year.

    • it is a small sale to cover the taxes on restricted stock grants vesting, the problem they have their plan set up as quarterly vesting vs what companies normally do which is annual so it looks like they are always selling shares (4x vs 1x per year).

      what is the vesting hurry??? very bad sign to investors.

      i am strong buy but these guys don't get it, shea's comments on a buyback shows how incompetent he really is, stock price is still here due to the stock offering shea pushed for last year

      Craig punted the question when it came up on the conf call last quarter to keep the stink away from him, with one transaction they undid all the good they did in all the conferences for a full year. The overhang is still hanging over the stock, management can stand on the highest mountain and say that teva is not going to get approved on e nox. But BS walks action talks sold shares at 13, won't buyback shares at these prices and not one insider putting a penny of their own money to buy shares, not even to pay the taxes on the free shares we give them. if we had a qualified team the stock would be at least the 20's.

      Shea got to go

    • The sale was very small one.
      All insiders sold tiny amounts on the same day.
      It seems like an automatic sale to me.

      The Gunner

    • EMAIL went to Management:
      ----------------------------------------------------------
      The company is sitting with >350m in cash earning 0.1%. Based on company's own guidance, the company does not need >150m(in worst case scenario of 3rd entrant in lovenox) to tide through 2014 when generic Copaxone would be launched which is expected to be a bigger product. When the stock is extremely undervalued at $15 per share (considering copaxone launch in 2014) why is the company not considering buying back shares at least with 150m in cash ?

      Shareholders are not interested in "temporary pop in price" (as described by your management in a recent conference call). We are interested in buyback because it can maximize value PERMANENTLY to Shareholders considering the current prices.

      We as investors believe that the company should carefully calibrate making any big investment in this highly risky FOB business. The ideal way would be spin off this unit and fund it as much as possible via external investors with MNTA getting a stake in the FOB company. As we understand, the first follow-on-biologic, the kind that Momenta wants to make would (if all things go right ) may hit the market no sooner than 2017 (6 years from now). Additionally, Follow on biologics has various uncertainties including: no FDA formal pathway, clinical trials needed, burden of interchangeability may be high both in terms of characterization as well as clinical trials, time FDA takes to review, etc.

      In evaluating the 2 ways to utilize cash, the company should consider that buying back shares at these current undervalued prices would result in guaranteed and permanent increase in shareholder value. { Buying back at these undervalued prices amounts to increasing existing shareholder's stake in Copaxone earnings}

      Versus

      Utilizing cash to augment highly risky FOB business that may or may not result in upside and may take at least 6 years to get a product to market.

      We think buying back shares ($150m at these prices of $15 per share) is the most compelling & prudent investment that this company can immediately capitalize on in terms of maximizing shareholder value, without engendering any risk to it's business/operations and should not waste any time doing this.
      ----------------------------------------------------------

      • 4 Replies to investorgold2002
      • investorgold, I don't understand why you think that FOBs are so risky. Compared to new drugs, the FOB program is far less risky and less costly. Your share buy back proposal makes no sense either. You keep talking about TEVA getting T-lovenox approved in 2011, 2012 or 2013. If that is what you really expect, why in the world would you want to spend the precious cash hoard of MNTA before the supposedly imminent price decline?

      • FOB direct lie another excuse to hoard cash.

        Momenta is on record saying they are not going to invest significant funds on FOB's i.e. $100m until they have a partner to help fund. if you look at pg 50 of the 10k you can see what they are spending their R&D dollars on and you will see no programs listed as FOB.

        I am long and do not want to say too much negative but i do have a serious problem on how momenta has been compensating their employees and after reading the proxy this year i finally decided enough is enough once copaxone is approved i am out.

        for every $100 invested in 12/31/05 (like me) was now worth $67.92 on 12/31/10 (Post enox)vs nasdaq 125.93 and peers 114.80. at the same time the compensation committee felt momenta should receive a larger annual increase then their peers

        on pg 27 of the proxy lists the items which bonuses will be granted on (nowhere will you find creating sharholder value) the most importatnt item that is holding the company share price back "business development" the board rated them zero (this is where the company needs to focus we are giving sandoz 50% of the profits to get copaxone approved because management couldn't do it itself, do you think sandoz who has over 200 anda's approved really needs rick shea's help??? get to BD rick)

        but then the board gave them extra credit for non sense to not only give them 100 percent of the target bonus but over that the execs got 110-112% of their target.

        here is the worst when enox got approved $15.4m of restricted stock vested to momenta's 170 employees but this was not enough to reward them further they granted a special $2.0m cash bonus. Almost got sick when i read this they should be ashamed!


        this was such a good idea the board granted a special copaxone restricted grant on the filed application which is being managed by sandoz where cw will get stock valued over $2m rick shea almost $1m (what is he gonna do to get approved??????) and similar amounts to other execs and ee's if copaxone application gets Approved this is the point people are missing and did not pick up on Approved does not equal LAUNCHED so we could get approved this year and not launch for two years but they dilute our stock

        when i invested their was a risk factor that listed two key ee's Ram and Ganesh as key to the company's technology based on their work at MIT together. Ram was given and sold so much stock he can't even bother to show up at board meetings anymore and needed to be replaced

        What sums it up since 12/05 i am down 30% and as of 4/1/11 and craig wheeler has been given 2.1% of the company and counting!!!

      • investorgold_is_an_imbecile investorgold_is_an_imbecile Aug 22, 2011 10:16 AM Flag

        stfu already

      • I am with management..... dont buy back stock, and dont deflate the stock with too high stock option awards which are not justified. Focus on development

 
MNTA
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