Replies to post #2777 on Enanta Pharmaceuticals Inc (ENTA)

[DC15]

I remember a time of great discontent upon any declaration of information which was readily accessible from the day's chart, alas there is recognition that recapitulation of the otherwise obvious can help one to persevere.

Welcome to table.

[dewophile]

The move yesterday didn't make much sense, the move today doesn't either - it ends up as a wash as the traders have fun with this
I do think the rationale for trading below cash has to be mitigated bc of the low burn, which will further decrease substantially as the phase 2s wrap up. At that point ENTA will still have way more cash than the current market cap, and either good data to then ramp up to phase 3, partner, etc. (and they can then monetize the remainer of the royalty and have more cash in one years time than they have now even), or the data is a dud and spending drops to a crawl with no clinical drugs to progress. It also appears the lawsuit will be at a critical juncture by then too
so between now and 9-12 months from now the traders can have their fun
I find it a stretch to think preclinical candidates to be announced early next year can move things much but you never know every now and then you can get excitement for a very early stage drug but that is unusual (e.g. BMY paying 800M for a preclinical IDO)