Enanta Pharmaceuticals Inc (ENTA)

[steveporsche]

Benjamin Graham is rolling over in his grave. IMO the current enterprise value just does not make sense even assuming a very conservative forecast of royalty income over the next few years (especially given ENTA's current modest overall business expense structure). ABBV's guidance would need to be off by a mile for the current valuation to make sense. IMO ABBV is too big a company to make such a large error on guidance even though its still early in the launch. Also, IMO they have nothing to gain by lying about guidance.

The market for whatever reason seems to be disinterested in royalty based companies.

I always thought ENTA would need to put up good numbers to reach my next hoped for level of share price. I never thought a month ago that they would need to put up good numbers from a low $30s share price. Certainly is frustrating, especially when other biotechs I am interested in acquiring a significantly larger position are starting to run away from me.