Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

ENTA’s pro forma net cash @6/30/24=$303.2M—excluding balance-sheet “debt” relating to ENTA’s deferred-royalty obligations, which is a GAAP artifact rather than an actual debt instrument.*

The $303.2M figure, which declined $26.9M since 3/31/24, consists of:

• $260.6M net current assets on the 6/30/24 balance sheet (https://www.sec.gov/ix?doc=/Archives/edgar/data/0001177648/000095017024092714/enta-20240630.htm p.3), after excluding the $32.3M line under Current Liabilities called, “Liability related to the sale of future royalties.” *

• $42.5M of marketable securities on the 6/30/24 balance sheet (ibid) designated as long term (e.g. T-notes and bonds with a time to maturity greater than one year).

*The GAAP treatment for ENTA’s deferred-royalty “debt” is described in #msg-172603887.