Enanta Pharmaceuticals Inc (ENTA)

[Rocky3]

You are reading it wrong as that is an accounting "trick". They have $400 million in cash and cash equivalents.

If they have to pay $200MM+ out of future revenue to a creditor and cannot use that money for other operations, I would say treating it as a debt is correct. They have sold ~50% of their future revenue (at least for the next ~3 years) and have to pay it back. It was clearly a loan agreement is substance. It is true that they don't have to use current assets, but the $200MM is not really theirs - it is borrowed money. The net worth of the company has not gone up - it has gone done by the quarterly burn. If you think otherwise, I would suggest that you read it again. As DD pointed out, it is the way that it should be accounted for.