Replies to post #3100 on Enanta Pharmaceuticals Inc (ENTA)

[mouton29]

I agree. Focusing on the “shareholder equity” line on the GASP balance counts the royalty stream obligation as a liability but fails to include any value for the royalty stream — that may be the proper GAAP treatment but seems especially wrong from an economic standpoint where the “liability” is nonrecourse and secured by only 54 percent of the royalties.