Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

ENTA reports FY1Q24* results:

https://ir.enanta.com/news-releases/news-release-details/enanta-pharmaceuticals-reports-financial-results-its-fiscal-38

• 12/31/23 cash = $337M, a decrease of $33M relative to 9/30/23..

• FY1Q24 royalty revenue was $18.0M, -5% QoQ and –20% YoY. 54.5% of ENTA’s Mavyret royalties are payable to OMERS (Canada’s largest pension fund), and this amount is treated for accounting purposes as an amortization of debt (see discussion in #msg-172603887).

• FY1Q24 R&D expenses were $36.4M, somewhat above the quarterly run rate of ENTA’s FY2024* guidance of $100-120M.

• FY1Q24 SG&A expenses were $16.5M, somewhat above the quarterly run rate of ENTA’s FY2024* guidance of $45-50M.

• Legal expenses for the Paxlovid lawsuit against PFE were a material portion of the SG&A expenses for the quarter.

• ENTA reiterated that its cash and expected royalty revenue are sufficient to fund operations through the end of FY2027.

*ENTA’s fiscal years end on September 30.