Replies to post #2483 on Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

ENTA’s partial monetization of the Mavyret royalty stream is a wise move (IMO), although they probably should have done it sooner. I commented on this in #msg-166883690.

[Jake2234]

Running out of $. Need to keep that cash burning fire bright!

[vinmantoo]

This was a smart and prudent move by ENTA. That should be obvious to anyone with a functional brain, which leaves out our friend Jake. ENTA was going to have to raise cash in a year or so, and with big rise in interest rates over the last year, if they didn't do this they were facing either dilutive financing or a loan on less favorable terms than in a long while. No worries about cash for a while now. All attention shifts to the phase 2 trial data which is due on a few weeks. While ENTA investors hope for, or expect the data to be very good, there is no guarantees. That is why this deal for ~54% of future MAVYRET revenues and placing a cap on revenues sold, were a smart prudent move. By keeping half of the revenues, ENTA will still benefit in MAVYRET revenues rise post-Covid.