Biotech Values

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Rare Discovery: A Value in the Biotech World

Falling hepatitis C revenue has dented giants such as AbbVie and Gilead but created a rare bargain in biotech Enanta

Biotech and value investing don’t traditionally go together. Enanta Pharmaceuticals is an exception to that rule.

Enanta is a development stage biotech focused on liver disease treatments. The company’s first compound to hit the market is a key ingredient in AbbVie’s hepatitis C treatment, Viekira Pak. Enanta’s principal source of current revenue is royalty payments based on Viekira sales.

Companies focused on hepatitis C, once the darling of the biotech sector, have fallen out of favor as competition and pricing pressure pull revenues lower industrywide. Enanta hasn’t been immune to this effect—its shares are down by more than 40% from their 2015 peak. Gilead Sciences, the market leader in hepatitis C, has experienced a similar decline.


https://www.wsj.com/articles/rare-discovery-a-value-in-the-biotech-world-1490202736?mod=yahoo_hs