Replies to post #1821 on Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

ENTA’s follow-on FXR agonist is called EDP-297. Phase-1 is expected to start in mid 2020.

[DewDiligence]

ENTA FY4Q19 CC transcript:

https://finance.yahoo.com/news/edited-transcript-enta-earnings-conference-223913413.html

[DewDiligence]

ENTA’s fully-diluted* share count @9/30/19=22.7M—unchanged since 6/30/19 (#msg-150437998).

The 22.7M figure above consists of: 19.7M basic shares on the 9/30/19 balance sheet (https://www.sec.gov/ix?doc=/Archives/edgar/data/1177648/000156459019044729/enta-10k_20190930.htm#CONSOLIDATED_BALANCE_SHEETS ); and 3.0M options outstanding (whether or not exercisable) (ibid, page F-23).

*Non-treasury method.

[DewDiligence]

ENTA’s pro forma cash @9/30/19=$444.2M—an increase of $13.4M since 6/30/19 (#msg-150437994).

The $444.2M figure consists of: $379.2M of net current assets on the 9/30/19 balance sheet (https://www.sec.gov/ix?doc=/Archives/edgar/data/1177648/000156459019044729/enta-10k_20190930.htm#CONSOLIDATED_BALANCE_SHEETS ); and $65.0M of marketable securities on the 9/30/19 balance sheet designated as non-current (e.g. bonds with a time to maturity greater than one year).

[DewDiligence]

ENTA's enterprise value at the current share price ($65.47) is approximately $1.04B, based on 22.7M fully-diluted shares (#msg-152977518) and pro forma cash of $444.2M (#msg-152977520).

See #msg-151399889 for related info.

[DewDiligence]

ENTA FY1Q20* results:

https://www.enanta.com/investors/news-releases/press-release/2020/Enanta-Pharmaceuticals-Reports-Financial-Results-for-its-Fiscal-First-Quarter-and-Three-Months-Ended-December-31-2019/default.aspx

FY1Q20 royalty revenue=52.6M, up slightly from $51.3M in FY4Q19.

ENTA’s royalty rate from ABBV is tiered, as shown in the table in #msg-142808661. The royalty rate is applied to the 50% Glecaprevir component of Mavyret (a 2-drug combination).

During ENTA’s FY1Q20, the royalty rate was 17% (the second-highest tier in the table), which equates to 8.5% when applied to ABBV’s actual Mavyret sales.

Based on this known royalty rate and ENTA’s reported FY1Q20 royalty income, we can infer that ABBV’s worldwide Mavyret sales during calendar 4Q19 were approximately $619M.

ENTA’s 12/31/19 cash=$415M (up from $400M on 9/30/19).

FY1Q20 GAAP EPS=$0.65.

*ENTA fiscal year 2020 ends 9/30/20.