Enanta Pharmaceuticals Inc (ENTA)

[Rocky3]

Glad we now agree :)

That may be a little premature.😀

cash on hand to cover that burn after the transaction

By definition, there will be LESS cash after the transaction is over. The terms of the deal is that $200MM was received (really borrowed) and $284MM will be paid back. The company will have $84MM less cash at the end of the deal than if they had not done the deal. The only way that that does not happen is if the royalties are insufficient for the 9 year term to satisfy the deal (or if the income from the cash exceeds the imputed interest on the cash advance), in which case ENTA has less retained income than planned. As I said before, ENTA needs other receipts before the end of this deal in order for this deal to make sense.