Replies to post #3104 on Enanta Pharmaceuticals Inc (ENTA)

[dewophile]

If you think the proper definition of real cash is 149M (your take) and they burn around 100M a year then they have 6 quarters in which to do something.
The company states they have cash for about 12 more quarters.
That’s quite the disconnect
Every small biotech has to “win” (in court or in the pipeline) before cash runs out

[mouton29]

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

If the expenses and resulting loss were related to the income stream, i.e., were a cost of producing that stream, I would agree. But here the income stream is a royalty stream with no associated costs. Instead, the losses are associated with development of new products. However, I agree that you can’t assume the liquidation value will be realized, an investor needs to believe that the cash and other assets will be successfully invested.