Buy Rating for Enanta Pharmaceuticals Driven by Promising RSV Drug Pipeline and Market Potential

Enanta Pharmaceuticals (ENTA) has received a new Buy rating, initiated by J.P. Morgan analyst, Anupam Rama.

Anupam Rama has given his Buy rating due to a combination of factors related to Enanta Pharmaceuticals’ promising developments in their drug pipeline. The recent phase 2b clinical trial results for zelicapavir, an N-Protein inhibitor targeting Respiratory Syncytial Virus (RSV), have shown significant potential. The data indicated faster symptom reduction in high-risk adult populations compared to placebo, with no major safety concerns, which positions the drug favorably for future phase 3 trials.
Additionally, Rama anticipates substantial market potential for zelicapavir, estimating peak sales to exceed $1.5 billion worldwide, with a significant portion coming from the U.S. market. The strategic attractiveness of zelicapavir is further enhanced by Enanta’s potential to partner the product, providing a source of non-dilutive financing. Rama’s valuation approach, primarily based on discounted cash flow analysis, supports a price target of $17 by December 2026, factoring in the expected global partnership and existing revenue streams from their Hepatitis C franchise.