Replies to post #2637 on Enanta Pharmaceuticals Inc (ENTA)

[vinmantoo]

pursuant to which the Company was paid a $200,000 cash purchase price in exchange for 54.5% of future quarterly royalty payments on net sales of MAVYRET/MAVIRET, after June 30, 2023, through June 30, 2032, subject to a cap on aggregate payments equal to 1.42 times the purchase price.

There is a typo in there as ENTA got $200 million ($200,000,000) not $200,000.

[DC15]

Thank you. Is the impetus for this accounting method tax efficiency?

Is it likely that the general market does not understand the accounting method being used, or is otherwise using this accounting method as an excuse to knock Enanta a little harder?

Does this accounting benefit Enanta through other mechanisms such as retaining eligibility for some government and oversight programs?

Thank you again!