Biotech Values

[DewDiligence]

Is ENTA still a buy?

...if you did not hold any ENTA at this moment, would you buy the stock at the current price point?

Yes; however, if I were buying ENTA de novo it would be a somewhat smaller position than what I currently own (at an average price in the teens).

Mavyret is going to be a big-selling product in the US, EU, and Japan, ensuring ENTA’s profitability for several years to come despite the relatively modest royalty rate ENTA gets from ABBV.

The new 21% US tax rate will considerably boost ENTA's profits insofar as Mavyret royalties are considered US income regardless of the geographic source of ABBV’s in-market sales.

At ENTA’s current valuation, the EDP-305 program in NASH/PBC—and the earlier-stage programs in RSV and HBV—are essentially free.

Despite your skepticism regarding FXR agonists, you should consider EDP-305 on its own merits. I posted some new info about the EDP-305 dosing in #msg-137556634.