Replies to post #1875 on Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

ENTA discontinues EDP-305 for PBC indication following phase-2 miss on primary endpoint:

https://www.enanta.com/investors/news-releases/press-release/2020/Enanta-Announces-Results-of-INTREPID-Study-of-EDP-305-for-the-Treatment-of-Primary-Biliary-Cholangitis/default.aspx

PBC is a small indication and EDP-305 is a bad drug, so ENTA’s discontinuing this program is entirely justifiable.

[DewDiligence]

New corporate slide set:

https://s22.q4cdn.com/306858242/files/doc_financials/quarterly/2020/q2/Enanta-Corporate-Presentation-May-6-2020-FINAL.pdf

[DewDiligence]

ENTA FY2Q20 CC transcript:

https://finance.yahoo.com/news/edited-transcript-enta-earnings-conference-053758804.html

[DewDiligence]

ENTA FY3Q20* results—royalty revenue=$18.6M—GAAP EPS=($0.71):

https://www.enanta.com/investors/news-releases/press-release/2020/Enanta-Pharmaceuticals-Reports-Financial-Results-for-its-Fiscal-Third-Quarter-Ended-June-30-2020-with-Webcast-and-Conference-Call-Today-at-430-p.m.-ET/default.aspx

ENTA’s FY3Q20 royalty revenue of $18.6M was sharply down from the $27.6M in FY2Q20 because ABBV’s sales of Mavyret in calendar 2Q20 (ENTA’s FY3Q20) suffered materially from the COVID-19 pandemic (#msg-157282636). The good news is that ABBV’s is guiding for a significant pickup in Mavyret sales during 2H20 (ibid).

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).

ENTA’s 6/30/20 cash balance was $435M, unchanged from 3/31/20.

*ENTA’s fiscal year 2020 ends on 9/30/20.