With 21.0M fully-diluted* shares, $242M in cash at 9/30/16 (#msg-126720369), no debt, and minuscule cash burn (so we may ignore the change since 9/30/16), ENTA’s enterprise value at today’s closing price of $30.07 is $390M.
If we further presume that ENTA will earn the $80M in milestones that ABBV must pay for regulatory approval of Glecaprevir/Pibrentasvir in the US, EU, and Japan, ENTA’s pro forma EV is only $310M. That’s cheap!
*Non-treasury method.
“The efficient-market hypothesis may be the foremost piece of B.S. ever promulgated in any area of human knowledge!”
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