Replies to post #5135 on Enanta Pharmaceuticals Inc (ENTA)

[dewophile]

re preclinical spend

I'm reading the 10k now, and I find it curious that the spend on Kit was higher in the comparable quarter last year when they were in the thick of lead optimization versus IND-enabling, and also that the spend on stat6 now (lead optimization) is a tad higher than KIT (scale up and IND)
It's usually the reverse where preclinical costs accelerate once you head into IND-enabling stage. The relative cost per se is trivial in the scheme of things, but just an observation that ENTA seems to really put resources into that "apple polishing" as Jay Luly likes to call it

[DewDiligence]

ENTA’s pro forma net cash @10/2/25=$256.7M—excluding balance-sheet “debt” relating to ENTA’s deferred-royalty obligations, which is a GAAP artifact rather than an actual debt instrument.*

The $256.7M figure consists of:

• $186.5M net current assets on the 9/30/25 balance sheet (https://www.sec.gov/ix?doc=/Archives/edgar/data/0001177648/000119312525288121/enta-20250930.htm#consolidated_balance_sheets ) after excluding the $30.7M line under Current Liabilities called, “Liability related to the sale of future royalties”*; and

• $70.3M net proceeds from the public offering that closed on 10/2/25.

NOTE: My calculation of pro forma net cash is intentionally conservative for calculating enterprise value. I do not count the cash that will be received by the company when existing options are exercised even though I count all options in the fully-diluted share count.

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