Replies to post #225805 on Biotech Values

[DewDiligence]

ENTA...any reason for the weakness?

Some investors may be skittish about the phase-2a data for EDP-305 in NASH that are due any day (#msg-145935658), and may be reported in conjunction with ENTA’s quarterly financials tomorrow after the close.

The concern with EDP-305 (an FXR agonist) is a potential safety problem (#msg-146937904). ENTA’s phase-2a trial won’t give much of a read on efficacy because there are no biopsies and the primary endpoint is change in ALT. The main point of the phase-2a trial is to select the dose(s) to advance in phase-2b.

…do you think [ENTA is]…attractively valued?

Yes, I do. ENTA’s pipeline and Mavyret-royalty stream gives it considerable buyout vig, IMO.