Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

ENTA reports FY2Q24* results—raises FY2024 expense guidance:

https://ir.enanta.com/news-releases/news-release-details/enanta-pharmaceuticals-reports-financial-results-its-fiscal-39

• 3/31/24 cash = $300.3M, a decrease of $37M relative to 12/31/23.

• FY2Q24 royalty revenue was $17.1M, -10% QoQ and -4% 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).

• FY2Q24 R&D expenses were $35.6M, consistent with ENTA’s updated fiscal-year guidance of $125-145M (raised from the $100-120M guidance given in Nov 2023).

• FY1Q24 SG&A expenses were $14.2M, consistent with ENTA’s updated guidance of $50-60M (raised from the $45-50M guidance given in Nov 2023). Legal expenses for the Paxlovid lawsuit against PFE were a material portion of the SG&A expenses for the quarter.

• ENTA says its cash and expected royalty revenue are sufficient to fund operations through the end of FY3Q27, which is one quarter earlier than the prior guidance of end of FY2027.

*ENTA’s fiscal year ends on September 30.