Replies to post #819 on Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

Good news and bad news in that arithmetic. Bad: The "0.4" fraction should be "0.3"—i.e. ENTA's royalties are based on 30% of ABBV's sales, which is the portion ascribed by agreement to ABT-450. Good: The 12% royalty rate (applied to the 30% of ABBV's sales) is the lowest tier; when sales exceed specified (undisclosed) thresholds, the 12% rate rises to as much as 20%.