Replies to post #2164 on Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

ENTA FY1Q22 CC transcript:

https://www.fool.com/earnings/call-transcripts/2022/02/09/enanta-pharmaceuticals-enta-q1-2022-earnings-call/

[DewDiligence]

ENTA FY2Q22* financials—royalty_revenue=$18.7M—3/31/22_cash=$322.5M (down from $347.7M at 12/31/21):

https://ir.enanta.com/news-releases/news-release-details/enanta-pharmaceuticals-reports-financial-results-its-fiscal-31

FY2Q22 R&D expenses were $42.1M, inline with prior guidance of $150-170M for FY2022; FY2Q22 SG&A expenses were $10.5M, very slightly above the annualized run rate of prior guidance of $35-41M for FY2022 (#msg-166871344).

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How ENTA’s Mavyret royalty is calculated

ENTA’s royalty rate on Mavyret sales 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).

During calendar 1Q22 (ENTA’s FY2Q22*), ABBV sold $380M of Mavyret (#msg-168696795), noting that HCV new-patient starts were still below pre-pandemic levels. In Feb 2022, ABBV issued calendar-2022 guidance for Mavyret sales of $1.7B (#msg-167728327). ABBV left this guidance unchanged in May 2022 after reporting 1Q22 results.

*ENTA’s fiscal year ends on September 30.