Replies to post #3077 on Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

ENTA’s fully-diluted share count @6/30/24=27.04M—unchanged since 3/31/24.

The 27.04M figure consists of: 21.18 basic shares on the 6/30/24 balance sheet (https://www.sec.gov/ix?doc=/Archives/edgar/data/0001177648/000095017024092714/enta-20240630.htm p.3); and 5.86M options and unvested restricted-stock shares and equivalents (whether or not exercisable) (ibid, p.9).

[Rocky3]

excluding balance-sheet “debt” relating to ENTA’s deferred-royalty obligations, which is a GAAP artifact rather than an actual debt instrument.*

GAAP artifact? I would still disagree. It has to be paid (out of the receipts from the royalty payments). Shareholder equity is down to $149MM. That is the real number to me (and under GAAP rules). That would change your numbers significantly. And I think most potential or current investors should look at it the same (though it is clear that many, if not most, posters here agree with you and not me).

JMO.

[DewDiligence]

ENTA’s pro forma net cash @9/30/24=$276.8M—excluding balance-sheet “debt” relating to ENTA’s deferred-royalty obligations, which is a GAAP artifact rather than an actual debt instrument.*

The $276.8M figure, which declined $26.3M since 6/30/24, consists of the net current assets on the 9/30/24 balance sheet (https://www.sec.gov/ix?doc=/Archives/edgar/data/0001177648/000095017024131260/enta-20240930.htm page F-4), after excluding the $34.5M line under Current Liabilities called, “Liability related to the sale of future royalties.” * (There were no non-current marketable securities on the 9/30/24 balance sheet).

*The GAAP treatment for ENTA’s deferred-royalty obligations is described in #msg-172603887.