Replies to post #4849 on Enanta Pharmaceuticals Inc (ENTA)

[alertmeipp]

>> When you plug in 5M royalty for 6 years you get a NPV of just under 22M


So today’s move under appreciated the actual worth of the news.

As the market cap increased only about half of that.

I guess then again, the market didnt really ascribe any value to the royalty to begin with

[DewDiligence]

Re: Knock-on effects of today’s approval

There could be a halo effect to chronic HCV segment though as prescribers will get more used to prescribing Mavyret if their go-to now is GILD's products…

…if some insurers contract only w GILD they will now have to offer Mavyret and some Mavyret Rx for chronic patients would sneak through w coverage.

I would submit that these “knock-on” effects will likely be more consequential than you (and other investors) seem to think. From a medical standpoint, there is no longer a valid reason for a physician to prescribe GILD’s Epclusa to any patient—acute or chronic. (GILD’s sales of Harvoni and Vosevi are already de minimis.)

[DewDiligence]

Nitpick—ENTA's Mavyret royalties run for another seven years (not six years).