Biotech Values

[DewDiligence]

ENTA FY4Q21* financials—royalty_revenue=$23.6M—9/30/21_cash=$352.4M—(down from $372.5M at 6/30/21):

https://www.enanta.com/investors/news-releases/press-release/2021/Enanta-Pharmaceuticals-Reports-Financial-Results-for-its-Fiscal-Fourth-Quarter-and-Year-Ended-September-30-2021-with-Webcast-and-Conference-Call-Today-at-430-p.m.-ET/default.aspx

ENTA issued new FY2022* guidance for gross operating expenses (including non-cash components such as stock-based compensation): $150-170M for R&D (down from $174.1M actual in FY2021); and $35-41M for G&A (up from $32.5M actual in FY2021).

How ENTA’s Mavyret royalty is calculated

ENTA’s royalty rate on Mavyret sales from ABBV is tiered, as shown in the table in #msg-142808661. The royalty rate is applied to the 50% Glecaprevir component of Mavyret (a 2-drug combination). The royalty tiers reset at the start of each calendar year (like tax brackets), so ENTA’s royalty rate is highest in the fourth calendar quarter (ENTA’s fiscal* Q1) and is lowest during the first calendar quarter (ENTA’s fiscal* Q2).

During calendar 3Q21 (ENTA’s FY4Q21*), ABBV sold $426M of Mavyret (#msg-166561274), biting that HCV new-patient starts were still below pre-pandemic levels. ABBV has issued calendar-2021 guidance for Mavyret sales of $1.7B, implying 4Q21 Mavyret sales roughly equal to the 3Q21 amount.

*ENTA’s fiscal year ends on September 30.