Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

On yesterday’s CC Jay Luly was asked if ENTA would consider monetizing the Mavyret royalty stream. He replied that now would not be a good time to do such a deal insofar as Mavyret sales can be expected to rise as the COVID pandemic fades and new-patient starts return to pre-pandemic levels.

I’m not sure I agree with Luly. Why not let a third party gamble on when—and whether—Mavyret sales will rebound to pre-pandemic levels?

Moreover, the royalty stream will be worth less if real (adjusted for inflation) interest rates rise.