Replies to post #211152 on Biotech Values

[DewDiligence]

ENTA’s had $300.4M pro forma cash @3/31/17—including near-term milestones:

Inasmuch as G/P* is likely to receive regulatory approval in the US, EU, and Japan during 2017, it’s reasonable to include ENTA’s $80M of regulatory milestones from these approvals on an after-tax basis. ENTA’s guidance for its 2017 tax rate is 33%, so the $80M of pre-tax milestone payments will generate $53.6M of after-tax proceeds.

At 3/31/17, ENTA had $181.4M of net current assets and $65.3M of non-current marketable securities (US treasury notes maturing in more than one year); summing these items gives $246.8M (https://www.sec.gov/Archives/edgar/data/1177648/000156459017010224/enta-10q_20170331.htm#CONSOLIDATED_BALANCE_SHEETS ).

Adding the $246.8M of balance-sheet items and the $53.6 of taxed milestone payments gives $300.4M.

*ABBV/ENTA’s pan-genotypic 2-DAA HCV regimen.