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Friday, December 08, 2006

Calls of Note Part 3

- Morgan Stanley is positive on Momenta Pharma (NASDAQ:MNTA) saying that after attending the ongoing '618 patent litigation, they believe there is a high likelihood that the original ruling on inequitable conduct will be upheld, which will be a positive for Momenta. They found Dr. Uzan's testimony to be flawed and inconsistent, which they believe could impair his credibility and convince the Judge on intent to deceive. Firm expects a decision on this case sometime in the next 1-2 months.

The ongoing litigation increases firm's confidence in the favorable risk reward ratio for playing the Lovenox trial. Their analyses indicates a positive outcome from the trial could result in up to 50% upside (as the first major hurdle for generic Lovenox will be removed) whereas downside is relatively modest (10%-20%).

Reits Overweight on MNTA with a $30 tgt.

Notablecalls: Expect to see a positive reaction following the call. MNTA is a mover.

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