Replies to post #2031 on Enanta Pharmaceuticals Inc (ENTA)

[vinmantoo]

Enanta has always been well funded as a research boutique. But to go it alone on some of these products would require a massive investment in personnel in regulatory, manufacturing, commercial, supply chain, etc. and I never had a strong feeling that they were committed to that....

I am just playing a hunch as to why Enanta may be able to change strategic direction more easily with respect to their business as a whole.

I still don't understand you reasoning. While it indeed will take a massive amount of resources, positive data from any of these programs, HSV, HepB, NASH or Covid fronts will jack up the stock price and make it easier to raise massive amounts of cash if ENTAS tires to go it alone. Of course, ENTA will be in the catbird seat to make a deal with a company which does have massive resources and experience. However, ENTA will be able to negotiate from a position of strength unlike what happened with Hep-C and ABBV. I expect a partnership on favorable terms for ENTA or a buyout as some time. I prefer a partnership but what I prefer doesn't matter.

[DewDiligence]

…to go it alone on some of these products would require a massive investment in personnel in regulatory, manufacturing, commercial, supply chain, etc.

ENTA is certainly not going to build its own manufacturing facility. The commercialization plan for each program has to be considered separately.

In NASH, ENTA wants to out-license EDP-305 if it looks viable following the interim analysis in the phase-2b trial. ENTA will also presumably seek to out-license EDP-297 after generating more clinical data.

In RSV, ENTA seeks to commercialize EDP-938 in the US and will seek a partner for international markets. The number of RSV prescribers in the US is small enough to make this a reasonable proposition, IMO.

In HBV, ENTA will seek a partner for international markets and may also seek a partner for the US. The approach taken will depend on whether ENTA is able to develop a functional-cure regimen consisting of EDP-514, EDP-721, and generic nuke… or whether ENTA will need to incorporate an agent being developed by another company.

In COVID-19, it’s too early to say what ENTA’s business approach will be, but the RSV program may provide a template if EDP-235 is potent enough to work as monotherapy.