Replies to post #162887 on Biotech Values

[DewDiligence]

Re: ENTA’s partnership economics

On ABT-450, ENTA is eligible to receive $195M in pre-commercialization milestones (of which an undisclosed portion is for NDA filings and the rest is for regulatory approvals) and a double-digit royalty on worldwide sales. (ENTA already received $57M up-front and $55M in clinical-development milestones from ABBV.) ABBV funds all clinical development and commercialization expenses for ABT-450 worldwide.

On ABT-493, the economics are similar to ABT-450 except that ENTA has the option to co-fund development and thereby earn a profit share rather than a royalty in the US market.

On EDP-239, ENTA is theoretically eligible to receive $395M in pre-commercial milestones and $160M in commercial milestones from NVS, as well as a double-digit royalty on worldwide sales. (ENTA already received $34M up-front and $11M in clinical milestones from NVS.) NVS funds all development and commercialization expenses worldwide. I used the word theoretically at the beginning of this paragraph because the EDP-239 program appears to be in the slow lane; I’m not convinced it will amount to anything since NVS appears to have pulled away from the HCV arena.

[DewDiligence]

Do you think ENTA is a compelling play at these levels?

With the sell-off since the end of May, I’m giving it another look.