MNTA - Here's Why Momenta Pharmaceuticals Dropped 13.5% Today
Without any meaningful revenue, Momenta Pharmaceuticals' (NASDAQ: MNTA) second-quarter report was rather uneventful, so it's a little surprising to see shares down 13.5% today without any significant news.But perhaps the lack of news is what's making short-term investors head for the exits.
Momenta recorded $6.6 million in product revenue from sales of Novartis' Glatopa, a generic version of multiple sclerosis treatment Copaxone. That was double the same period a year ago, but nothing to get excited about considering the company lost $57 million during the quarter.
Despite having helped create a couple of drugs, Momenta is essentially still a development-stage biotech, so its cash runway is a lot more important than revenue and earnings. Fortunately, Momenta ended the quarter with over $450 million in the bank, so the drugmaker is in no danger of running out of money in the near term.