Morningstar Equity Analyst Report | Report as of 10 Aug 2020 04:23, UTC | Page 1 of 13 Momenta Pharmaceuticals Inc MNTA (XNAS) Morningstar Rating Last Price Fair Value Estimate Price/Fair Value Trailing Dividend Yield % Forward Dividend Yield % Market Cap (Bil) Industry Stewardship QQQQ 32.99 USD 41.00 USD 0.80 — 0.00 3.88 Drug Manufacturers Standard 07 Aug 2020 07 Aug 2020 15 Jun 2020 07 Aug 2020 07 Aug 2020 07 Aug 2020 - Specialty & Generic 21:42, UTC 22:08, UTC Morningstar Pillars Analyst Quantitative Important Disclosure: Economic Moat None None The conduct of Morningstar’s analysts is governed by Code of Ethics/Code of Conduct Policy, Personal Security Trading Policy (or an equivalent of), Valuation QQQQ Fairly Valued and Investment Research Policy. For information regarding conflicts of interest, please visit http://global.morningstar.com/equitydisclosures Uncertainty Very High High Financial Health — Moderate Maintaining $41 Fair Value Estimate for Momenta Despite Pandemic- Source: Morningstar Equity Research Related Trial Delays Quantitative Valuation MNTA Business Strategy and Outlook $6 billion autoimmune immunoglobulin market, and recent dUSA data for M254 in ITP indicate that the drug could be much Karen Andersen, CFA, Analyst, 15 June 2020 Undervalued Fairly Valued Overvalued Momenta's strategy is transitioning as the firm moves more potent than existing immunoglobulin treatment. from complex generics and biosimilars into novel, branded Current 5-Yr Avg Sector Country Price/Quant Fair Value 0.98 0.98 0.82 0.83 autoimmune drugs, but its strong experience in Analyst Note Price/Earnings — — 26.5 20.1 characterizing complex proteins makes it a viable industry Karen Andersen, CFA, Analyst, 10 August 2020 Forward P/E -4.7 — 11.3 13.9 player and possible takeover target. We're maintaining our $41 Momenta fair value estimate Price/Cash Flow — 39.4 18.4 13.1 following in line second-quarter results. While Price/Free Cash Flow — 99.8 27.3 19.5 Trailing Dividend Yield% — — 1.50 2.35 Complex generics have faced higher development, pandemic-related trial delays have slightly pushed back Source: Morningstar manufacturing, and regulatory hurdles, which can reduce some of the firm's timelines for data readouts, competition and pricing pressure relative to typical management has also reduced operating expense Bulls Say generic markets. However, Momenta and Sandoz's guidance for the year (lower research and development OMomenta's protein engineering technology, which generic version of Sanofi's anticoagulant Lovenox, which expenses), and this had no significant impact on our allowed it develop generic versions of complex drugs was approved in 2010, saw short-lived success; Novartis valuation. We continue to assume a 50% probability of Lovenox and Copaxone, is guiding a promising withdrew the product from the market in 2018 because approval for Momenta's FcRN antibody nipocalimab, branded pipeline in autoimmune diseases. of expensive manufacturing contracts that weighed on which had positive phase 2 data in myasthenia gravis in OMomenta's nipocalimab is in midstage studies in profitability after competitors entered the market. June, and the firm plans to start phase 3 in the first quarter myasthenia gravis, warm hemolytic anemia, and fetal Momenta and Sandoz also launched a 20 mg generic of 2021 following final data readouts and FDA meetings maternal indications, and if data is positive, this version of Teva's multiple sclerosis drug Copaxone in later this year. Momenta expects proof of concept data in opens the door to multiple additional autoimmune 2015, marketed as Glatopa; however, Teva's conversion two other indications beyond this, including hemolytic disease indications. of Copaxone patients to a newer and less frequently disease of the fetus and newborn (2021) and warm OMomenta's partnership with CSL for M230 injected 40 mg formulation and Mylan's 40 mg generic hemolytic anemia (end of 2022). Our valuation includes a validates its technology and gives it a strong potential launch in 2017 were headwinds for Momenta's own 40 $29.50 stand-alone valuation and a 50% probability that marketing partner, given CSL's leadership in the mg product launch in 2018. Momenta is acquired at four times 2029 sales, or $52 per immunoglobulin market. share. While Momenta will see significant net losses over Momenta has halted further generic and biosimilar the next several years and has not locked in an economic pipeline investment, including a fully owned Humira moat, we think the firm's advancing pipeline supports a Bears Say biosimilar which was ready for filing, partly due to the positive moat trend. Momenta has enough cash to last ORevenue from Momenta's agreement with Sandoz competitive landscape. Momenta still has a phase 3 Eylea through at least the third quarter of 2021, giving it time to has declined, as Sandoz has removed generic biosimilar partnered with Mylan; this biosimilar has better generate more data for nipocalimab and mid-stage Lovenox from the market, and competition in the competitive positioning and is likely to launch in 2024 pipeline candidate and potential IVIG replacement M254 generic Copaxone market has prevented strong after Eylea patents expire. before a potential additional equity raise or collaboration uptake of Momenta's product. deal. OMomenta's novel FcRn-targeting antibody had Momenta has two wholly owned novel pipeline positive proof-of-concept data in 2020, but the candidates, M281 (nipocalimab) and M254, in midstage Economic Moat competitive landscape is crowded, including testing in autoimmune indications, as well as Karen Andersen, Analyst, 15 June 2020 Argenx's efgartigimod (to launch 2021) and Alexion's CSL-partnered M230 in a phase 1 trial. While the FcRn We don't think Momenta has an economic moat. Its two ALXN1830 (moving into phase 3). antibody pipeline is quite crowded, nipocalimab's fetal approved generic drugs (generic Lovenox and Copaxone) OWith no manufacturing capabilities, no salesforce, maternal program adds a unique angle and potential don't have patent protection. Although Momenta's focus and a declining cash balance, Momenta depends on faster route to market. Recent positive data in myasthenia on difficult-to-manufacture drugs limited initial manufacturing and marketing partnerships. gravis put the firm in a strong position, despite Alexion's competition, the company nonetheless has little pricing accelerating development programs and Argenx's power. Other generic entrants and incumbent branded potentially first-in-class program. Fc multimer M230 and versions have offered aggressive discounts, and modified immunoglobulin M254 could also compete in a Momenta's partner Sandoz has discontinued production ? © Morningstar 2020. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report. Morningstar Equity Analyst Report |Page 2 of 13 Momenta Pharmaceuticals Inc MNTA (XNAS) Morningstar Rating Last Price Fair Value Estimate Price/Fair Value Trailing Dividend Yield % Forward Dividend Yield % Market Cap (Bil) Industry Stewardship QQQQ 32.99 USD 41.00 USD 0.80 — 0.00 3.88 Drug Manufacturers Standard 07 Aug 2020 07 Aug 2020 15 Jun 2020 07 Aug 2020 07 Aug 2020 07 Aug 2020 - Specialty & Generic 21:42, UTC 22:08, UTC Close Competitors Currency (Mil) Market Cap TTM Sales Operating Margin TTM/PE of $29.50 per share. We also assume a 50% probability Teva Pharmaceutical Industries Ltd TEVA USD 13,610 16,788 18.13 0.00 that Momenta is acquired at four times 2029 sales, or $52 per share. While generic Copaxone revenue will dominate Mylan NV MYL USD 8,455 11,504 7.73 30.86 the top line for the next few years, we assume novel drug candidates could begin to generate sales by 2023, with Momenta turning a profit by 2026. of generic Lovenox as a result of this poor pricing environment. Momenta has scaled back its efforts in We assume relatively minimal generic Copaxone revenue biosimilars, and the 2019 termination of the biosimilar throughout our forecast period, remaining below $50 Humira program (which was ready for filing) due to the million annually. We assume a 70% probability of approval competitive landscape left only one biosimilar, Eylea, in of biosimilar Eylea in 2023, with profit share (assuming a the pipeline. For Eylea, we think Momenta's competitive 50% profit split) beginning in 2024. We think Momenta positioning could be stronger, as Momenta and partner could gain half of the biosimilar Eylea market, resulting in Mylan are the first to enter pivotal trials with a biosimilar, total probability-adjusted revenue to Momenta of roughly and we expected branded Eylea sales to approach $8 $90 million by 2029. billion by patent expiration in 2024. To fund the firm's branded pipeline, we assume total Momenta also has two fully owned branded pipeline annual operating costs remain near $200 million despite candidates and one CSL-partnered branded drug in clinical recent restructuring, as clinical trial costs counter lower development, and we think these programs are overhead costs due to lower headcount. We project the Momenta's best shot at building a long-term competitive company will continue to post losses over the next few advantage. However, Momenta's path to market is far years, but that the launches of nipocalimab (50% from certain; lead drug candidate nipocalimab is just probability of approval), M254 (50% probability), and generating initial proof-of-concept data, and the M230 (25% probability) could quickly push the firm to coronavirus is delaying or stopping enrollment in some profitability in 2026. We think these drugs support $3.1 indications. In addition, while M254 looks relatively billion in potential sales by 2029, or $1.4 billion in unique, there are several FcRn antibodies that could probability-adjusted revenue. We estimate Momenta's compete with nipocalimab, including drug candidates cost of equity at 11%. further along in development (Argenx's efgartigimod) or with better-funded sponsors (such as UCB and Alexion). Risk & Uncertainty Uncertain prospects for novel drugs in development Karen Andersen, Analyst, 15 June 2020 suggest very high uncertainty for producing economic Although Momenta has formed partnerships with Novartis profits over an extended period. If Momenta can navigate (complex generics), Mylan (biosimilar Eylea), and CSL clinical trials and bring one or more of its autoimmune (branded drug M230), the firm operates in competitive disease therapies to the market, we could consider marketplaces. Because Novartis has withdrawn awarding the firm a narrow moat. Momenta's generic Lovenox from the market, Momenta's sole marketed product is generic Copaxone (also via Fair Value & Profit Drivers Novartis), and the drug is struggling to compete with Karen Andersen, Analyst, 15 June 2020 Teva's branded Copaxone and Mylan's generic version. We're raising our fair value estimate for Momenta to $41 Momenta's share of generic Copaxone profits is not per share from $35, as we have raised our estimates for sufficient to fund research and development for the firm's FcRn antibody market shares and Momenta's share of this branded pipeline, which is expanding into larger and more market folllowing positive phase 2 data from nipocalimab numerous clinical trials over the next couple of years. As in myasthenia gravis. a result, Momenta could depend on future partnerships or the equity markets to support development. Momenta's We still assume a 50% probability of approval for the lead drug candidate nipocalimab faces several potential high-potency immunoglobulin, given positive early data FcRn-targeting competitors, and we're still waiting for in ITP and expansion of phase 2 testing in ITP and CIDP. data to clarify the potency and safety of nipocalimab. This leads to a stand-alone Momenta fair value estimate While M254 is more unique, there is no guarantee that it ? © Morningstar 2020. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report. Morningstar Equity Analyst Report |Page 3 of 13 Momenta Pharmaceuticals Inc MNTA (XNAS) Morningstar Rating Last Price Fair Value Estimate Price/Fair Value Trailing Dividend Yield % Forward Dividend Yield % Market Cap (Bil) Industry Stewardship QQQQ 32.99 USD 41.00 USD 0.80 — 0.00 3.88 Drug Manufacturers Standard 07 Aug 2020 07 Aug 2020 15 Jun 2020 07 Aug 2020 07 Aug 2020 07 Aug 2020 - Specialty & Generic 21:42, UTC 22:08, UTC will be a significant enough improvement over plasma-derived immunoglobulin in larger trials to justify the modifications needed to manufacture the drug. Additionally, Momenta's lack of commercial manufacturing capabilities requires it to rely on partnerships to bring its products to market. Stewardship Karen Andersen, Analyst, 15 January 2020 We give Momenta a Standard stewardship rating. As a high-risk small biotech, Momenta's capital-allocation decisions are commensurate with its peers. We generally like management's history of shared profit agreements with Novartis and Mylan, which have allowed Momenta to share in greater risk and rewards from these partnerships. Craig Wheeler has been CEO since 2006, and he also has a seat on the board. Wheeler was previously the president of Chiron Biopharmaceuticals and also a senior member at Boston Consulting Group. Anthony Manning is chief scientific officer, and brings previous research experience from Biogen and Roche. Bruce Downey is the chairman of the board, a role he has held since 2018. We appreciate that the chairman and CEO roles were separated in 2005 and that management ceased paying consulting fees to board members, which helps bolster board independence. Executive compensation, which is largely in the form of stock options (common for small biotechs), is tied largely to development goals for drugs in the company's pipeline. ? © Morningstar 2020. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report. Morningstar Equity Analyst Report |Page 4 of 13 Momenta Pharmaceuticals Inc MNTA (XNAS) Morningstar Rating Last Price Fair Value Estimate Price/Fair Value Trailing Dividend Yield % Forward Dividend Yield % Market Cap (Bil) Industry Stewardship QQQQ 32.99 USD 41.00 USD 0.80 — 0.00 3.88 Drug Manufacturers Standard 07 Aug 2020 07 Aug 2020 15 Jun 2020 07 Aug 2020 07 Aug 2020 07 Aug 2020 - Specialty & Generic 21:42, UTC 22:08, UTC value estimate based on first-quarter results, and we Analyst Notes Archive continue to model a $23.50 per share stand-alone valuation combined with a 50% probability that Momenta Maintaining Momenta's Fair Value Following Q4 is acquired at four times 2029 sales, or $46 per share. In Results; Bullish on Upcoming 2020 Catalysts the quarter, Momenta's portion of revenue from Novartis' Karen Andersen, Analyst, 26 February 2020 Copaxone biosimilar, Glatopa, increased significantly to We're maintaining our fair value estimate for Momenta $8.7 million, driven by demand. However, operating Pharmaceuticals after fourth-quarter results that put expenses are the main driver of Momenta's financials, as full-year performance slightly ahead of our estimates and the firm is building its own proprietary pipeline in FactSet consensus on the top line but slightly below on immunology. Momenta expects non-GAAP operating the bottom line, largely due to a December legal expense expenses to be lower than the $220 million-$240 million of $35 million. The firm's guidance for non-GAAP guidance for full-year 2020 released in February, due to operating expenses of $220 million-$240 million in 2020 slower clinical trial progress tied to the pandemic, but is manageable, particularly given the $545 million in cash management doesn't plan to quantify the range until its remaining at the end of 2019, boosted by a December second-quarter call (we now assume roughly $205 million 2019 equity issuance of $244 million. Management did for the year). We slightly lowered our Momenta fair value not provide any additional data updates, and we're estimate in mid-April after assuming delays in pipeline sticking with our $38 fair value estimate, which progress due to the pandemic, but overall the firm's key incorporates a 50% chance that Momenta is acquired ($26 programs are either moving forward as planned or per share stand-alone valuation in our DCF model). While experiencing roughly one-quarter delays. While the firm Momenta will see significant net losses over the next is in a key part of its development ramp and is burning several years and does not have an economic moat, we through cash, we think it has a good buffer, with $488 think the firm's advancing pipeline supports a positive million in cash at the end of the quarter expected to last moat trend. at least through third-quarter 2021. While Momenta will see significant net losses over the next several years and The pipeline has several catalysts over the remainder of has not locked in an economic moat, we think the firm's 2020, on the heels of very promising data for advancing pipeline supports a positive moat trend. hypersialylated (high potency) immunoglobulin M254 in ITP (bleeding disorder) released in January, and updated Raising Our Fair Value Estimate for Momenta to $41 data from this study should be ready in the second quarter. Following Positive Nipocalimab Data Momenta is also launching a phase 2 study of the drug in Karen Andersen, Analyst, 15 June 2020 CIDP, one of the largest potential autoimmune indications, We're raising our Momenta fair value estimate to $41 per in the fourth quarter. We continue to see this program as share from $35 following positive data from the phase 2 promising, given the potential for it to become a more study of FcRn antibody nipocalimab in myasthenia gravis. convenient subcutaneous competitor to plasma-derived We've raised both our estimates for the potential FcRn treatments and relieve supply constraints on this $6 billion market and Momenta's share of this market, although market, as well as efficacy that could surpass that of we're maintaining our probability of approval at 50% as Fc-RN drugs (evidenced by recent data from UCB and the firm continues to work through phase 2 data and Argenx). We continue to think that Momenta will be able finalize phase 3 plans later this year. Our valuation to source the immunoglobulin it needs to manufacture includes a $29.50 stand-alone valuation (up from $23.50) M254 from either a small or large plasma player, but that and a 50% probability that Momenta is acquired at four plasma firms and immunology-focused biotech/pharma times 2029 sales, or $52 per share (up from our prior firms could be interested in acquiring Momenta outright, assumption of $46 per share). While Momenta will see as well. We model a 50% probability of approval for M254. significant net losses over the next several years and has not locked in an economic moat, we think the firm's Maintaining $35 FVE for Momenta Following Steady advancing pipeline supports a positive moat trend. 1Q, Only Slight Delays for Key Clinical Programs Karen Andersen, Analyst, 08 May 2020 Momenta's FcRn antibody nipocalimab is in a competitive We're not making any changes to our $35 per share fair class of therapies, with several other FcRn antibodies in ? © Morningstar 2020. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report. Morningstar Equity Analyst Report |Page 5 of 13 Momenta Pharmaceuticals Inc MNTA (XNAS) Morningstar Rating Last Price Fair Value Estimate Price/Fair Value Trailing Dividend Yield % Forward Dividend Yield % Market Cap (Bil) Industry Stewardship QQQQ 32.99 USD 41.00 USD 0.80 — 0.00 3.88 Drug Manufacturers Standard 07 Aug 2020 07 Aug 2020 15 Jun 2020 07 Aug 2020 07 Aug 2020 07 Aug 2020 - Specialty & Generic 21:42, UTC 22:08, UTC development in myasthenia gravis, although today's data before a potential additional equity raise or collaboration improves Momenta's competitive positioning. Argenx deal. leads the pack, with phase 3 data for efgartigimod in May 2020 showing a response (based on MG-ADL score) in 68% of treated patients and 30% of placebo patients for this once-weekly infusion. Momenta's nipocalimab so far has shown a similar placebo-adjusted response on MG-ADL of (52% response on nipo versus 15% for placebo), but with infusions poised to be once monthly or less frequent. Argenx is filing for approval later in 2020, with approval expected in 2021, perhaps two years ahead of Momenta. Both Momenta and Argenx are using bridging studies to bring subcutaneous versions to the market, to enhance convenience. While cross-trial comparisons are difficult, we think nipo's efficacy so far looks similar to efgartigimod's, but we expect nipo could have a convenience benefit due to longer duration of activity. We expect more phase 2 data from nipo in the fourth quarter, as well as more information on phase 3 trial design. Maintaining $41 Fair Value Estimate for Momenta Despite Pandemic-Related Trial Delays Karen Andersen, Analyst, 10 August 2020 We're maintaining our $41 Momenta fair value estimate following in line second-quarter results. While pandemic-related trial delays have slightly pushed back some of the firm's timelines for data readouts, management has also reduced operating expense guidance for the year (lower research and development expenses), and this had no significant impact on our valuation. We continue to assume a 50% probability of approval for Momenta's FcRN antibody nipocalimab, which had positive phase 2 data in myasthenia gravis in June, and the firm plans to start phase 3 in the first quarter of 2021 following final data readouts and FDA meetings later this year. Momenta expects proof of concept data in two other indications beyond this, including hemolytic disease of the fetus and newborn (2021) and warm hemolytic anemia (end of 2022). Our valuation includes a $29.50 stand-alone valuation and a 50% probability that Momenta is acquired at four times 2029 sales, or $52 per share. While Momenta will see significant net losses over the next several years and has not locked in an economic moat, we think the firm's advancing pipeline supports a positive moat trend. Momenta has enough cash to last through at least the third quarter of 2021, giving it time to generate more data for nipocalimab and mid-stage pipeline candidate and potential IVIG replacement M254 ? © Morningstar 2020. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report. Quantitative Equity Report | Release: 10 Aug 2020, 11:23 UTC | Reporting Currency: USD | Trading Currency: USD | Exchange:XNAS Page Page 6 of1 13 of 1 Momenta Pharmaceuticals Inc MNTA QQQQ 10 Aug 2020 02:00 UTC Last Close Fair ValueQ Market Cap Sector Industry Country of Domicile 07 Aug 2020 10 Aug 2020 02:00 UTC 07 Aug 2020 32.99 33.81 3,880.9 Mil d Healthcare Drug Manufacturers - USA United States Specialty & Generic There is no one analyst in which a Quantitative Fair Value Estimate and Quantitative Star Rating are attributed to; however, Mr. Lee Davidson, Head of Quantitative Price vs. Quantitative Fair Value Research for Morningstar, Inc., is responsible for overseeing the methodology that 2016 2017 2018 2019 2020 2021 Quantitative Fair Value Estimate supports the quantitative fair value. As an employee of Morningstar, Inc., Mr. Total Return Davidson is guided by Morningstar, Inc.’s Code of Ethics and Personal Securities Trading Policy in carrying out his responsibilities. For information regarding Conflicts Sales/Share 60 of Interests, visit http://global.morningstar.com/equitydisclosures Forecast Range Forcasted Price 48 Dividend Company Profile Split Momenta is a biotechnology company focused on the Momentum: Positive 36 characterization and development of innovative drugs in Standard Deviation: 60.71 autoimmune diseases. Its legacy business includes complex Liquidity: High 24 generic versions of MS drug Copaxone and anticoagulant Lovenox, and it receives royalties for these products through a 11.29 52-Wk 39.88 partnership with Novartis. While a biosimilar version of Eylea 12 is in the pipeline, Momenta terminated future development in 7.86 5-Yr 39.88 generics/biosimilars in 2018. Several innovative drugs, 1.4 -7.3 -20.9 78.7 67.2 Total Return % including nipocalimab, M254, and M230, are in development -11.0 -28.8 -15.8 47.5 62.1 +/– Market (Morningstar US Index) Quantitative Scores Scores — — — — — Trailing Dividend Yield % All Rel Sector Rel Country — — — — — Forward Dividend Yield % Quantitative Moat None 1 1 1 -11.1 -17.5 -5.5 -9.3 -11.8 Price/Earnings Valuation Fairly Valued 19 34 25 10.5 9.2 8.6 31.8 119.9 Price/Revenue Quantitative Uncertainty High 84 81 88 Morningstar RatingQ Financial Health Moderate 81 58 81 QQQQQ QQQQ QQQ MNTA QQ Q d USA 2015 2016 2017 2018 2019 TTM Financials (Fiscal Year in K) Undervalued Fairly Valued Overvalued 89,650 109,619 138,882 75,589 23,868 28,644 Revenue Source: Morningstar Equity Research 71.6 22.3 26.7 -45.6 -68.4 20.0 % Change -84,434 -74,727 -92,551 -163,520 -311,701 -304,304 Operating Income — — — — — — % Change Valuation Sector Country Current 5-Yr Avg Median Median -83,313 -21,003 -88,096 -176,061 -290,055 -284,767 Net Income Price/Quant Fair Value 0.98 0.98 0.82 0.83 -71,515 7,888 -30,356 -155,590 -204,802 -231,825 Operating Cash Flow Price/Earnings — — 26.5 20.1 -4,068 -5,609 -17,127 -9,019 -1,776 -2,496 Capital Spending Forward P/E -4.7 — 11.3 13.9 -75,583 2,279 -47,483 -164,609 -206,578 -234,321 Free Cash Flow Price/Cash Flow — 39.4 18.4 13.1 -84.3 2.1 -34.2 -217.8 -865.5 -818.0 % Sales Price/Free Cash Flow — 99.8 27.3 19.5 -1.32 -0.31 -1.20 -2.26 -2.92 -2.80 EPS Trailing Dividend Yield % — — 1.50 2.35 — — — — — — % Change Price/Book 9.1 3.7 3.4 2.4 -0.90 -0.97 0.56 -2.31 -2.15 -2.25 Free Cash Flow/Share Price/Sales 119.9 12.6 4.2 2.4 — — — — — — Dividends/Share 5.69 4.58 4.72 2.53 2.37 3.64 Book Value/Share Profitability Sector Country 69,077 71,076 76,355 98,464 116,460 117,639 Shares Outstanding (K) Current 5-Yr Avg Median Median Profitability Return on Equity % -66.9 -32.7 12.4 12.9 -28.9 -5.7 -23.6 -42.2 -63.4 -66.9 Return on Equity % Return on Assets % -50.5 -26.8 6.2 5.2 -24.6 -4.7 -18.8 -35.5 -50.5 -50.5 Return on Assets % Revenue/Employee (K) 242.7 400.5 309.2 325.9 -92.9 -19.2 -63.4 -232.9 -1,215.3 -994.2 Net Margin % 0.26 0.24 0.30 0.15 0.04 0.05 Asset Turnover Financial Health Sector Country Current 5-Yr Avg Median Median 1.1 1.3 1.2 1.2 1.4 1.3 Financial Leverage Distance to Default 0.6 0.7 0.6 0.5 -40.6 -9.4 -7.5 -64.1 -505.6 -426.4 Gross Margin % Solvency Score — — 494.6 552.4 -94.2 -68.2 -66.6 -216.3 -1,305.9 -1,062.4 Operating Margin % Assets/Equity 1.4 1.2 1.4 1.7 — — — — — — Long-Term Debt Long-Term Debt/Equity — — 0.1 0.4 369,976 371,908 374,154 461,008 454,460 428,193 Total Equity 3.8 5.1 5.5 3.0 1.5 0.4 Fixed Asset Turns Growth Per Share Quarterly Revenue & EPS Revenue Growth Year On Year % 1-Year 3-Year 5-Year 10-Year Revenue (Mil) Mar Jun Sep Dec Total 116.1 Revenue % -68.4 -39.8 -14.5 1.7 2020 8.9 — — — — Operating Income % — — — — 2019 4.1 5.2 6.4 8.2 23.9 Earnings % — — — — 2018 4.9 13.0 14.9 42.8 75.6 Dividends % — — — — 2017 26.6 23.6 24.1 64.6 138.9 Book Value % -16.7 -9.3 0.6 6.3 Earnings Per Share () -15.2 2020 -0.34 — — — — -38.2 -33.7 Stock Total Return % 179.1 26.6 8.4 6.2 -44.7 -60.2 -57.1 2019 -0.46 -1.16 -0.45 -0.85 -2.92 -80.9 -81.8 2018 -0.63 -0.91 -0.65 -0.10 -2.26 2018 2019 2020 2017 -0.46 -0.50 -0.44 0.18 -1.20 © Morningstar 2020. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and ® opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore is not an offer to buy or sell a security; are not warranted to be correct, complete or accurate; and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, ß analyses or opinions or their use. The information herein may not be reproduced, in any manner without the prior written consent of Morningstar. Please see important disclosures at the end of this report. Morningstar Equity Analyst Report |Page 7 of 13 Research Methodology for Valuing Companies Qualitative Equity Research Overview intangible assets, switching costs, network effect, cost Our model is divided into three distinct stages: At the heart of our valuation system is a detailed projection advantage, and efficient scale. of a company's future cash flows, resulting from our Stage I: Explicit Forecast analysts' research. Analysts create custom industry and Companies with a narrow moat are those we believe In this stage, which can last five to 10 years, analysts company assumptions to feed income statement, balance are more likely than not to achieve normalized excess make full financial statement forecasts, including items sheet, and capital investment assumptions into our globally returns for at least the next 10 years. Wide-moat such as revenue, profit margins, tax rates, changes in standardized, proprietary discounted cash flow, or DCF, companies are those in which we have very high working-capital accounts, and capital spending. Based modeling templates. We use scenario analysis, in-depth confidence that excess returns will remain for 10 years, on these projections, we calculate earnings before competitive advantage analysis, and a variety of other with excess returns more likely than not to remain for at interest, after taxes, or EBI, and the net new analytical tools to augment this process. We believe this least 20 years. The longer a firm generates economic investment, or NNI, to derive our annual free cash flow bottom-up, long-term, fundamentally based approach profits, the higher its intrinsic value. We believe low- forecast. allows our analysts to focus on long-term business drivers, quality no-moat companies will see their normalized which have the greatest valuation impact, rather than short- returns gravitate toward the firm's cost of capital more Stage II: Fade term market noise. quickly than companies with moats. The second stage of our model is the period it will take the company's return on new invested capital—the Morningstar's equity research group (“we," "our") believes To assess the direction of the underlying competitive return on capital of the next dollar invested ("RONIC")— that a company's intrinsic worth results from the future advantages, analysts perform ongoing assessments of to decline (or rise) to its cost of capital. During the Stage cash flows it can generate. The Morningstar Rating for the moat trend. A firm's moat trend is positive in cases II period, we use a formula to approximate cash flows in stocks identifies stocks trading at an uncertainty-adjusted where we think its sources of competitive advantage lieu of explicitly modeling the income statement, discount or premium to their intrinsic worth—or fair value are growing stronger; stable where we don't anticipate balance sheet, and cash flow statement as we do in estimate, in Morningstar terminology. Five-star stocks sell changes to competitive advantages over the next Stage I. The length of the second stage depends on the for the biggest risk-adjusted discount to their fair values several years; or negative when we see signs of strength of the company's economic moat. We forecast whereas 1-star stocks trade at premiums to their intrinsic deterioration. this period to last anywhere from one year (for worth. companies with no economic moat) to 10–15 years or All the moat and moat trend ratings undergo periodic more (for wide-moat companies). During this period, Four key components drive the Morningstar rating: (1) our review and any changes must be approved by the cash flows are forecast using four assumptions: an assessment of the firm's economic moat, (2) our estimate of Morningstar Economic Moat Committee, comprised of average growth rate for EBI over the period, a the stock's fair value, (3) our uncertainty around that fair senior members of Morningstar's equity research normalized investment rate, average return on new value estimate and (4) the current market price. This department. invested capital, or RONIC, and the number of years process ultimately culminates in our single-point star rating. until perpetuity, when excess returns cease. The 2. Estimated Fair Value investment rate and return on new invested capital 1. Economic Moat Combining our analysts' financial forecasts with the decline until the perpetuity stage is reached. In the case The concept of an economic moat plays a vital role not firm's economic moat helps us assess how long returns of firms that do not earn their cost of capital, we only in our qualitative assessment of a firm's long-term on invested capital are likely to exceed the firm's cost of assume marginal ROICs rise to the firm's cost of capital investment potential, but also in the actual calculation capital. Returns of firms with a wide economic moat (usually attributable to less reinvestment), and we may of our fair value estimates. An economic moat is a rating are assumed to fade to the perpetuity period over truncate the second stage. structural feature that allows a firm to sustain excess a longer period of time than the returns of narrow-moat profits over a long period of time. We define excess firms, and both will fade slower than no-moat firms, Stage III: Perpetuity economic profits as returns on invested capital (or ROIC) increasing our estimate of their intrinsic value. Once a company's marginal ROIC hits its cost of capital, over and above our estimate of a firm's cost of capital, we calculate a continuing value, using a standard or weighted average cost of capital (or WACC). Without perpetuity formula. At perpetuity, we assume that any a moat, profits are more susceptible to competition. We growth or decline or investment in the business neither have identified five sources of economic moats: creates nor destroys value and that any new investment provides a return in line with estimated WACC. Morningstar Research Methodology for Valuing Companies Because a dollar earned today is worth more than a dollar earned tomorrow, we discount our projections of cash flows in stages I, II, and III to arrive at a total present value of expected future cash flows. Because we are modeling free cash flow to the firm—representing cash available to provide a return to all capital providers—we discount future cash flows using the WACC, which is a weighted average of the costs of equity, debt, and preferred stock (and any other funding sources), using expected future proportionate long-term market-value weights. ? © Morningstar 2020. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report. Morningstar Equity Analyst Report |Page 8 of 13 Research Methodology for Valuing Companies 3. Uncertainty Around That Fair Value Estimate Morningstar Equity Research Star Rating Methodology Morningstar's Uncertainty Rating captures a range of likely potential intrinsic values for a company and uses it to assign the margin of safety required before investing, which in turn explicitly drives our stock star rating system. The Uncertainty Rating represents the analysts' ability to bound the estimated value of the shares in a company around the fair value estimate, based on the characteristics of the business underlying the stock, including operating and financial leverage, sales sensitivity to the overall economy, product concentration, pricing power, and other company-specific factors. Analysts consider at least two scenarios in addition to their base case: a bull case and a bear case. Assumptions are chosen such that the analyst believes there is a 25% probability that the company will perform better than the bull case, and a 25% probability that the company will perform worse than the bear case. The distance between the bull and bear cases is an important indicator of the uncertainty underlying the fair value estimate. Our recommended margin of safety widens as our uncertainty of the estimated value of the equity increases. The more uncertain we are about the estimated value of the equity, the greater the discount we require relative to our estimate of the value of the firm before we would recommend the purchase of the Morningstar Star Rating for Stocks The Morningstar Star Ratings for stocks are defined below: shares. In addition, the uncertainty rating provides Once we determine the fair value estimate of a stock, we guidance in portfolio construction based on risk compare it with the stock's current market price on a daily QQQQQ We believe appreciation beyond a fair risk- tolerance. basis, and the star rating is automatically re-calculated at adjusted return is highly likely over a multiyear time frame. the market close on every day the market on which the The current market price represents an excessively Our uncertainty ratings for our qualitative analysis are stock is listed is open. pessimistic outlook, limiting downside risk and maximizing low, medium, high, very high, and extreme. Please note, there is no predefined distribution of stars. upside potential. That is, the percentage of stocks that earn 5 stars can × Low–margin of safety for 5-star rating is a 20% discount fluctuate daily, so the star ratings, in the aggregate, can QQQQ We believe appreciation beyond a fair risk- and for 1-star rating is 25% premium. serve as a gauge of the broader market's valuation. When adjusted return is likely. × Medium–margin of safety for 5-star rating is a 30% there are many 5-star stocks, the stock market as a whole is discount and for 1-star rating is 35% premium. more undervalued, in our opinion, than when very few QQQ Indicates our belief that investors are likely to × High–margin of safety for 5-star rating is a 40% discount companies garner our highest rating. receive a fair risk-adjusted return (approximately cost of and for 1-star rating is 55% premium. equity). × Very High–margin of safety for 5-star rating is a 50% We expect that if our base-case assumptions are true the discount and for 1-star rating is 75% premium. market price will converge on our fair value estimate over QQ We believe investors are likely to receive a less than × Extreme–margin of safety for 5-star rating is a 75% time, generally within three years (although it is impossible fair risk-adjusted return. discount and for 1-star rating is 300% premium. to predict the exact time frame in which market prices may adjust). Q Indicates a high probability of undesirable risk-adjusted 4. Market Price returns from the current market price over a multiyear time The market prices used in this analysis and noted in the Our star ratings are guideposts to a broad audience and frame, based on our analysis. The market is pricing in an report come from exchange on which the stock is listed, individuals must consider their own specific investment excessively optimistic outlook, limiting upside potential and which we believe is a reliable source. goals, risk tolerance, tax situation, time horizon, income leaving the investor exposed to Capital loss. needs, and complete investment portfolio, among other For more details about our methodology, please go to factors. https://shareholders.morningstar.com. ? © Morningstar 2020. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report. Morningstar Equity Analyst Report |Page 9 of 13 Research Methodology for Valuing Companies Other Definitions quantitative report and the quantitative ratings, there is no Value Estimate, current market price, and the Quantitative one analyst in which a given report is attributed to; Uncertainty Rating. The rating is expressed as 1-Star, 2-Star, Last Price: Price of the stock as of the close of the market however, Mr. Lee Davidson, Head of Quantitative Research 3-Star, 4-Star, and 5-Star. of the last trading day before date of the report. for Morningstar, Inc., is responsible for overseeing the methodology that supports the quantitative equity ratings Q: the stock is overvalued with a reasonable margin of Stewardship Rating: Represents our assessment of used in this report. As an employee of Morningstar, Inc., safety. management's stewardship of shareholder capital, with Mr. Davidson is guided by Morningstar, Inc.'s Code of Ethics Log (Quant FVE/Price)<–1*Quantitative Uncertainty particular emphasis on capital allocation decisions. Analysts and Personal Securities Trading Policy in carrying out his consider companies' investment strategy and valuation, responsibilities. QQ: the stock is somewhat overvalued. financial leverage, dividend and share buyback policies, Log (Quant FVE/Price) between (–1*Quantitative execution, compensation, related party transactions, and Quantitative Equity Ratings Uncertainty, –0.5*Quantitative Uncertainty) accounting practices. Corporate governance practices are Morningstar's quantitative equity ratings consist of: only considered if they've had a demonstrated impact on (i) Quantitative Fair Value Estimate QQQ: the stock is approximately fairly valued. shareholder value. Analysts assign one of three ratings: (ii) Quantitative Star Rating Log (Quant FVE/Price) between (–0.5*Quantitative "Exemplary," "Standard," and "Poor." Analysts judge (iii) Quantitative Uncertainty Uncertainty, 0.5*Quantitative Uncertainty) stewardship from an equity holder's perspective. Ratings (iv) Quantitative Economic Moat are determined on an absolute basis. Most companies will (v) Quantitative Financial Health QQQQ: the stock is somewhat undervalued. receive a Standard rating, and this is the default rating in (collectively the "Quantitative Ratings"). Log (Quant FVE/Price) between (0.5*Quantitative the absence of evidence that managers have made Uncertainty, 1*Quantitative Uncertainty) exceptionally strong or poor capital allocation decisions. The Quantitative Ratings are calculated daily and derived from the analyst-driven ratings of a company's peers as QQQQQ: the stock is undervalued with a reasonable Quantitative Valuation: Using the below terms, intended to determined by statistical algorithms. Morningstar, Inc. margin of safety. Log (Quant FVE/Price) >1*Quantitative denote the relationship between the security's Last Price ("“Morningstar," "we," "our") calculates Quantitative Uncertainty and Morningstar's quantitative fair value estimate for that Ratings for companies whether it already provides analyst security. ratings and qualitative coverage. In some cases, the Quantitative Uncertainty: Intended to represent Quantitative Ratings may differ from the analyst ratings Morningstar's level of uncertainty about the accuracy of the × Undervalued: Last Price is below Morningstar's because a company's analyst-driven ratings can quantitative fair value estimate. Generally, the lower the quantitative fair value estimate. significantly differ from other companies in its peer group. quantitative Uncertainty, the narrower the potential range × Fairly Valued: Last Price is in line with Morningstar's of outcomes for that particular company. The rating is quantitative fair value estimate. Quantitative Fair Value Estimate: Intended to represent expressed as Low, Medium, High, Very High, and Extreme. × Overvalued: Last Price is above Morningstar's Morningstar's estimate of the per share dollar amount that quantitative fair value estimate. a company's equity is worth today. Morningstar calculates × Low: the interquartile range for possible fair values is less the quantitative fair value estimate using a statistical model than 10%. Risk Warning derived from the fair value estimate Morningstar's equity × Medium: the interquartile range for possible fair values is Please note that investments in securities are subject to analysts assign to companies. Please go to less than 15% but greater than 10%. market and other risks and there is no assurance or https://shareholders.morningstar.com for information about × High: the interquartile range for possible fair values is guarantee that the intended investment objectives will be fair value estimates Morningstar's equity analysts assign to less than 35% but greater than 15%. achieved. Past performance of a security may or may not be companies. × Very High: the interquartile range for possible fair values sustained in future and is no indication of future is less than 80% but greater than 35%. performance. A security investment return and an investor's Quantitative Economic Moat: Intended to describe the × Extreme: the interquartile range for possible fair values is principal value will fluctuate so that, when redeemed, an strength of a firm's competitive position. It is calculated greater than 80%. investor's shares may be worth more or less than their using an algorithm designed to predict the Economic Moat original cost. A security's current investment performance rating a Morningstar analyst would assign to the stock. The Quantitative Financial Health: Intended to reflect the may be lower or higher than the investment performance rating is expressed as Narrow, Wide, or None. probability that a firm will face financial distress in the near noted within the report. Morningstar's Uncertainty Rating future. The calculation uses a predictive model designed to serves as a useful data point with respect to sensitivity × Narrow: assigned when the probability of a stock anticipate when a company may default on its financial analysis of the assumptions used in our determining a fair receiving a "Wide Moat" rating by an analyst is greater obligations. The rating is expressed as Weak, Moderate, value price. than 70% but less than 99%. and Strong. × Wide: assigned when the probability of a stock receiving Quantitative Equity Reports Overview a "Wide Moat" rating by an analyst is greater than 99%. × Weak: assigned when Quantitative Financial Health <0.2 The quantitative report on equities consists of data, × None: assigned when the probability of an analyst × Moderate: assigned when Quantitative Financial Health statistics and quantitative equity ratings on equity receiving a "Wide Moat" rating by an analyst is less than is between 0.2 and 0.7 securities. Morningstar, Inc.'s quantitative equity ratings are 70%. × Strong: assigned when Quantitative Financial Health >0.7 forward looking and are generated by a statistical model that is based on Morningstar Inc.'s analyst-driven equity Quantitative Star Rating: Intended to be the summary ratings and quantitative statistics. Given the nature of the rating based on the combination of our Quantitative Fair ? © Morningstar 2020. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report. Morningstar Equity Analyst Report |Page 10 of 13 Research Methodology for Valuing Companies Other Definitions Last Close: Price of the stock as of the close of the market of the last trading day before date of the report. Quantitative Valuation: Using the below terms, intended to denote the relationship between the security's Last Price and Morningstar's quantitative fair value estimate for that security. × Undervalued: Last Price is below Morningstar's quantitative fair value estimate. × Fairly Valued: Last Price is in line with Morningstar's quantitative fair value estimate. × Overvalued: Last Price is above Morningstar's quantitative fair value estimate. This Report has not been made available to the issuer of the security prior to publication. Risk Warning Please note that investments in securities are subject to market and other risks and there is no assurance or guarantee that the intended investment objectives will be achieved. Past performance of a security may or may not be sustained in future and is no indication of future performance. A security investment return and an investor's principal value will fluctuate so that, when redeemed, an investor's shares may be worth more or less than their original cost. A security's current investment performance may be lower or higher than the investment performance noted within the report. The quantitative equity ratings are not statements of fact. Morningstar does not guarantee the completeness or accuracy of the assumptions or models used in determining the quantitative equity ratings. In addition, there is the risk that the price target will not be met due to such things as unforeseen changes in demand for the company's products, changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, and tax rate. For investments in foreign markets there are further risks, generally based on exchange rate changes or changes in political and social conditions. A change in the fundamental factors underlying the quantitative equity ratings can mean that the valuation is subsequently no longer accurate. For more information about Morningstar's quantitative methodology, please visit http://global.morningstar.com/equitydisclosures. ? © Morningstar 2020. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at the end of this report. Morningstar Equity Analyst Report |Page 11 of 13 Momenta Pharmaceuticals Inc MNTA (XNAS) Morningstar Rating Last Price Fair Value Estimate Price/Fair Value Trailing Dividend Yield % Forward Dividend Yield % Market Cap (Bil) Industry Stewardship QQQQ 32.99 USD 41.00 USD 0.80 — 0.00 3.88 Drug Manufacturers Standard 07 Aug 2020 07 Aug 2020 15 Jun 2020 07 Aug 2020 07 Aug 2020 07 Aug 2020 - Specialty & Generic 21:42, UTC 22:08, UTC General Disclosure The analysis within this report is prepared by the person (s) noted in their capacity as an analyst for Morningstar’s equity research group. The equity research group consists of various Morningstar, Inc. subsidiaries (“Equity Research Group)”. In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The opinions expressed within the report are given in good faith, are as of the date of the report and are subject to change without notice. Neither the analyst nor Equity Research Group commits themselves in advance to whether and in which intervals updates to the report are expected to be made. The written analysis and Morningstar Star Rating for stocks are statements the Report and are subject to change. While financial situation or particular needs of any specific of opinions; they are not statements of fact. Morningstar has obtained data, statistics and recipient. This publication is intended to provide information from sources it believes to be reliable, information to assist institutional investors in making The Equity Research Group believes its analysts make Morningstar does not perform an audit or seeks their own investment decisions, not to provide a reasonable effort to carefully research information independent verification of any of the data, statistics, investment advice to any specific investor. Therefore, contained in the analysis. The information on which the and information it receives. investments discussed and recommendations made analysis is based has been obtained from sources herein may not be suitable for all investors: recipients believed to be reliable such as, for example, the The quantitative equity ratings are not a market call, must exercise their own independent judgment as to company’s financial statements filed with a regulator, and do not replace the User or User’s clients from the suitability of such investments and recommendations company website, Bloomberg and any other the conducting their own due-diligence on the security. The in the light of their own investment objectives, relevant press sources. Only the information obtained quantitative equity rating is not a suitability experience, taxation status and financial position. from such sources is made available to the issuer who assessment; such assessments take into account may is the subject of the analysis, which is necessary to factors including a person’s investment objective, The information, data, analyses and opinions presented properly reconcile with the facts. Should this sharing of personal and financial situation, and risk tolerance all herein are not warranted to be accurate, correct, information result in considerable changes, a statement of which are factors the quantitative equity rating complete or timely. Unless otherwise provided in a of that fact will be noted within the report. While the statistical model does not and did not consider. separate agreement, neither Morningstar, Inc. or the Equity Research Group has obtained data, statistics and Equity Research Group represents that the report information from sources it believes to be reliable, Prices noted with the Report are the closing prices on contents meet all of the presentation and/or disclosure neither the Equity Research Group nor Morningstar, Inc. the last stock-market trading day before the publication standards applicable in the jurisdiction the recipient is performs an audit or seeks independent verification of date stated, unless another point in time is explicitly located. any of the data, statistics, and information it receives. stated. Except as otherwise required by law or provided for in General Quantitative Disclosure General Disclosure (applicable to both Quantitative a separate agreement, the analyst, Morningstar, Inc. The Quantitative Equity Report (“Report”) is derived and Qualitative Research) and the Equity Research Group and their officers, from data, statistics and information within Unless otherwise provided in a separate agreement, directors and employees shall not be responsible or Morningstar, Inc.’s database as of the date of the Report recipients accessing this report may only use it in the liable for any trading decisions, damages or other and is subject to change without notice. The Report is country in which the Morningstar distributor is based. losses resulting from, or related to, the information, for informational purposes only, intended for financial Unless stated otherwise, the original distributor of the data, analyses or opinions within the report. The Equity professionals and/or sophisticated investors (“Users”) report is Morningstar Research Services LLC, a U.S.A. 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To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Morningstar Equity Analyst Report |Page 12 of 13 Momenta Pharmaceuticals Inc MNTA (XNAS) Morningstar Rating Last Price Fair Value Estimate Price/Fair Value Trailing Dividend Yield % Forward Dividend Yield % Market Cap (Bil) Industry Stewardship QQQQ 32.99 USD 41.00 USD 0.80 — 0.00 3.88 Drug Manufacturers Standard 07 Aug 2020 07 Aug 2020 15 Jun 2020 07 Aug 2020 07 Aug 2020 07 Aug 2020 - Specialty & Generic 21:42, UTC 22:08, UTC investment decision and when deemed necessary, to currently covers and provides written analysis on seek the advice of a legal, tax, and/or accounting • Neither Morningstar, Inc. or the Equity Research please contact your local Morningstar office. In professional. 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Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Morningstar Equity Analyst Report |Page 13 of 13 Momenta Pharmaceuticals Inc MNTA (XNAS) Morningstar Rating Last Price Fair Value Estimate Price/Fair Value Trailing Dividend Yield % Forward Dividend Yield % Market Cap (Bil) Industry Stewardship QQQQ 32.99 USD 41.00 USD 0.80 — 0.00 3.88 Drug Manufacturers Standard 07 Aug 2020 07 Aug 2020 15 Jun 2020 07 Aug 2020 07 Aug 2020 07 Aug 2020 - Specialty & Generic 21:42, UTC 22:08, UTC SEBI or any other legal/regulatory body. Morningstar Investment Adviser India Private Limited is a wholly owned subsidiary of Morningstar Investment Management LLC. 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The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869.
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