Enanta Pharmaceuticals Inc (ENTA)

[Armstrong2]

I am having some difficulty to understand why the stock of ENTA drops that much, more than 10% with no negative news other than IBB and Nasdaq had undergone some corrections now.

ENTA to me is never a momentum stock. The biotech hedge fund doesn't like a royalty based biotech which often limits its upside. I always view ENTA as a value stock in the biotech.

Even with headlines on the negative pricing of GILD's drug, I don't think pricing will be a big issue unless the drug industry one day will be regulated. ABT/ENTA's first generation has some disadvantages than GILD's solution, that said, with all phase III data already know and the size of hcv market, the combo should be able to generate at least 2B revenue.

With about 5 years, ENTA will have more cashs at hand than its current stock valuation at less than 700M cap. So who is selling today other than the stock so far has not undergone a major correction?