Biotech Values

[DewDiligence]

Re: ENTA’s pro forma enterprise value

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.