Replies to post #3102 on Enanta Pharmaceuticals Inc (ENTA)

[DewDiligence]

The $174.2M figure can also be derived by summing the current ($32.3M) and non-current ($141.9M) balance-sheet lines for, "Liability related to the sale of future royalties" on the 6/30/24 balance sheet.

[Rocky3]

If you believe that 54.5 percent of the royalty stream is worth at least $174 as of 6/30, the remaining unemcumbered 45.5 is worth at least $145.

Agreed. And that gives no value to the residuary 100% stream after the deal is over. But, if you start to capitalize the income stream, you should also capitalize the ongoing annual loss from operations (which have been very significant) as a liability. Probably both are wrong. I think the best way is to focus on "real" cash. Clearly I have a very definition of "real" cash than many here (if not most). Regardless, the company cannot afford to continue to burn $100MM (my view) - to $125MM (others' view) for several more years. It needs to win the lawsuit, have another source of income, or sell more stock soon.

JMO.