Replies to post #237045 on Biotech Values

[DewDiligence]

ENTA new corporate slide set:

https://s22.q4cdn.com/306858242/files/doc_presentations/2021/02/Enanta-Corporate-Presentation-2.8.21-FINAL.pdf

[DewDiligence]

ENTA’s CC had many more analyst questions than any of the company’s prior CCs. Not sure why, but I suppose it’s a good sign. (I’ve listened to every ENTA CC since the 2013 IPO.)

CC transcript:
https://finance.yahoo.com/m/9d9f7e29-6d00-3518-93e7-d65594b4895d/enanta-pharmaceuticals-inc.html

[DewDiligence]

ENTA FY2Q21 results—royalty_revenue=$20.1M—3/31/21_cash=$400M:

https://www.enanta.com/investors/news-releases/press-release/2021/Enanta-Pharmaceuticals-Reports-Financial-Results-for-its-Fiscal-Second-Quarter-Ended-March-31-2021-with-Webcast-and-Conference-Call-Today-at-430-p.m.-ET/default.aspx

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. The royalty tiers reset at the start of each calendar year (like tax brackets), so ENTA’s royalty rate is highest in the fourth calendar quarter (ENTA’s fiscal* Q1) and is lowest during the first calendar quarter (ENTA’s fiscal* Q2—the quarter just reported).

During calendar 1Q21 (ENTA’s FY2Q21*), ABBV sold $415M of Mavyret. ABBV has issued calendar-2021 guidance for Mavyret sales of $2.0B (#msg-163517997), expecting Mavyret sales to pick up as the COVID pandemic recedes, which will enable more backlogged HCV patients to seek treatment.

ENTA’s 3/31/21 cash balance of $400M was down $5M from 12/31/20 (#msg-161624309).

ENTA previously issued FY2021* guidance for gross operating expenses (including non-cash components such as stock-based compensation): $145-165M for R&D; and $27-33M for G&A. The FY2Q21 numbers ($41.5M for R&D; $8.3M for G&A) were consistent with the prior guidance.

*ENTA’s fiscal year ends on September 30.