Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

ENTA reports FY3Q24* financials—EDP-323 “challenge-study” data_due_Sep_2024 (study complete)—Zelicapavir RSVPEDs phase-2 data due calendar 4Q24:

https://ir.enanta.com/news-releases/news-release-details/enanta-pharmaceuticals-reports-financial-results-its-fiscal-40

• 6/30/24 cash = $272.6M, a decrease of $27.7M from the cash balance at 3/31/24.

• FY2Q24 royalty revenue was $18.0M, +5% QoQ and -5% YoY. Note: 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 $28.7M, slightly below the quarterly run rate of the lower bound of ENTA’s FY2024 guidance of $125-145M given three months ago.

• FY1Q24 SG&A expenses were $13.4M, consistent with ENTA’s FY2024 guidance of $50-60M given three months ago. 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 until 6/30/27 (end of FY3Q27).

*ENTA’s fiscal year ends on September 30.