Enanta Pharmaceuticals Inc (ENTA)

[willyw]

Storm clouds are gathering.

We are seeing states threaten to limit the number of treatments, and to prioritize who receives HCV treatment.

It is uncertain whether the congress can make a company change the prices of their drugs or regimens, but states or payors have their own ways of pushing back.

If things get tight.... it will create a restriction in the number of people who get treated, it will change the demographics of who gets treated (probably the sickest and hardest to cure being the first to be approved), and extend the treatment tail into a longer than anticipated period of years.

If this happens it will impact on potential earnings near term, and it may mean sharing the HCV space with other players as they gain approvals for their HCV therapies.

http://www.natap.org/2014/HCV/080514_01.htm