Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

ENTA reports FY4Q23* results and pipeline update:

https://ir.enanta.com/news-releases/news-release-details/enanta-pharmaceuticals-reports-financial-results-its-fiscal-37

FY4Q23 royalty revenue was $18.9M, unchanged from the prior quarter. 54.5% of ENTA’s Mavyret royalties are payable to OMERS†, and this amount is treated for accounting purposes as an amortization of debt (see discussion in #msg-172603887).

9/30/23 cash = $370M, a decrease of $23M relative to 6/30/23.

Today, ENTA issued FY2024* guidance as follows:

• R&D expense of $100-120M, down sharply from $163.5M in FY2023.

• SG&A expense of $45-50M, down modestly from $52M in FY2023.

Based on the reduced operating expenses described above, ENTA says its cash and expected royalty revenue are sufficient to fund operations for the next four years—i.e. through the end of FY2027.

Pipeline

• EDP-938 (RSV N-protein inhibitor): ENTA expects to report data from the phase-2b RSVPEDs (pediatric) and the phase-2b RSVHR (high-risk adults) trials in calendar 3Q23, assuming there is a normal RSV season in the Northern Hemisphere.

• EDP-323 (RSV L-protein inhibitor): ENTA just started a phase-2a “challenge” study; data expected in calendar 3Q23.

• The preclinical program for single-agent dual inhibition of RSV and hMPV has been terminated.

• EDP-235 (COVID protease inhibitor): If a partnership is secured for a phase-3 trial, the population tested will be standard-risk patients with a primary endpoint based on symptom relief.

• Non-virology: “The company will announce new therapeutic programs beginning in early 2024.” An analyst on today’s CC asked if one of these programs was GLP-1, but ENTA declined to answer.

*ENTA’s fiscal years end on September 30

†Ontario Municipal Employees Retirements System (Canada’s largest pension fund)