Enanta Pharmaceuticals Inc (ENTA)

[dewophile]

yes semantics, except that rocky feels this is the correct way to look at the financial health of the company

Shareholder equity is down to $149MM

IF ENTA were to get bought or liquidate today they in fact have 270M in cash, plus say 100M of an asset in the remaining royalty stream, an income tax credit of 30M or so, and if you ascribe zero to the pipeline and flush it down the toilet (of course you have some responsitility to complete ongoing trials but simplifying here), you end up with 400M or so of cash and cash equivalent, not 149M. The 200M of debt is simply handled by transferring over the 54% royalty stream to whoever is buying the company