Replies to post #2765 on Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

“The company will announce new therapeutic programs beginning in early 2024.”

“Early 2024” probably means the JPM conference, where ENTA is presenting on Jan 10.

[vinmantoo]

• EDP-938 (RSV N-protein inhibitor): ENTA expects to report data from the phase-2b RSVPEDs (pediatric) and the phase-2b RSVHR (high-risk adults) trials in calendar 3Q23, assuming there is a normal RSV season in the Northern Hemisphere.

• EDP-323 (RSV L-protein inhibitor): ENTA just started a phase-2a “challenge” study; data expected in calendar 3Q23.

Dew, the data for both RSV drugs is expected in Q3 2024 not 2023.

[DewDiligence]

Correction—The references to "calendar 3Q23" for the data readout of ENTA's RSV trials should be "calendar 3Q24." (h/t vinmantoo)

[DewDiligence]

ENTA FY4Q23 CC transcript:

https://finance.yahoo.com/news/q4-2023-enanta-pharmaceuticals-inc-121858027.html

[Rocky3]

One of the things from your summary of the quarter that is missing is the annual decrease in shareholder equity - down to $216,735K from $321,334K last year. With the decreased expenses projected next year, the reduction should be less, but if the loss from operations is still $80M, instead of $133M, net worth might be ~$135M after 09/24.

I still think net worth is much more important than cash to analyze financial health. The "debt" has to be paid back. It will be paid (out of the future cash flow), just like any kind of other borrowing.

I took yesterday's rally as an opportunity to sell 1/2 my position (obviously should have sold all). Other people's tax selling may hold down the price for the next 5-6 weeks.

[DewDiligence]

ENTA’s new non-virology program is in immunology:

https://finance.yahoo.com/news/enanta-pharmaceuticals-updates-research-development-120000343.html

Today, Enanta announced its expansion into immunology with its first program in chronic spontaneous urticaria (CSU), a severely debilitating, chronic inflammatory skin disease. CSU is estimated to affect 0.5% to 1% of the global population, and there is a substantial unmet need for an efficacious oral agent. Currently, approximately half of patients are not controlled with antihistamines, and a minority of those patients are treated with one indicated biologic.

Enanta’s approach is to treat CSU by depleting mast cells through KIT inhibition, addressing a primary driver of the disease. The company has developed novel, potent and selective oral inhibitors of KIT, which are now being optimized in preclinical development. Enanta’s prototype inhibitors potently inhibit activity in both binding and cellular function assays and are highly selective for KIT versus other kinases. These inhibitors also demonstrate strong in vitro and in vivo ADME* properties.

More details on ENTA's JPM webcast next week.

*Absorption, distribution, metabolism and excretion.

[DewDiligence]

ENTA reports FY1Q24* results:

https://ir.enanta.com/news-releases/news-release-details/enanta-pharmaceuticals-reports-financial-results-its-fiscal-38

• 12/31/23 cash = $337M, a decrease of $33M relative to 9/30/23..

• FY1Q24 royalty revenue was $18.0M, -5% QoQ and –20% YoY. 54.5% of ENTA’s Mavyret royalties are payable to OMERS (Canada’s largest pension fund), and this amount is treated for accounting purposes as an amortization of debt (see discussion in #msg-172603887).

• FY1Q24 R&D expenses were $36.4M, somewhat above the quarterly run rate of ENTA’s FY2024* guidance of $100-120M.

• FY1Q24 SG&A expenses were $16.5M, somewhat above the quarterly run rate of ENTA’s FY2024* guidance of $45-50M.

• Legal expenses for the Paxlovid lawsuit against PFE were a material portion of the SG&A expenses for the quarter.

• ENTA reiterated that its cash and expected royalty revenue are sufficient to fund operations through the end of FY2027.

*ENTA’s fiscal years end on September 30.