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Enanta Pharmaceuticals (ENTA)
:ENTA
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Enanta Pharmaceuticals
(NASDAQ:ENTA)
53Neutral
Positive Factors
Clinical Trials
Zelicapavir successfully met the study's primary virology endpoint in the pooled efficacy population, with a peak viral load reduction compared to placebo.
Financial Performance
Enanta ended with cash and marketable securities of $216.7M, which should fund operations into fiscal 2028, providing runway to achieve multiple milestones across their virology and immunology efforts.
Negative Factors
Regulatory Challenges
Clarity is needed for symptom improvement with zelicapavir, as there are no regulatory-approved symptom assessment tools for pediatric RSV currently.
Enanta Pharmaceuticals (ENTA) vs. S&P 500 (SPY)
Market Cap
$154.23M
Dividend YieldN/A
Average Volume (3M)449.83K
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth-9.55%
EPS Growth24.57%
CountryUS
Employees131
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-4.95
Shares Outstanding21,332,544
10 Day Avg. Volume266,400
30 Day Avg. Volume449,826
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.20
Price to Cash Flow (P/CF)-2.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.40Price Target Upside98.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Enanta Pharmaceuticals Business Overview & Revenue Model
Company DescriptionEnanta Pharmaceuticals, Inc. (ENTA) is a biotechnology company that specializes in the discovery and development of small molecule drugs, primarily focused on antiviral and liver disease treatments. The company is engaged in research and development activities aimed at creating therapies for diseases such as hepatitis B virus (HBV), respiratory syncytial virus (RSV), and non-alcoholic steatohepatitis (NASH), among others. Enanta's core products focus on leveraging its expertise in chemistry and virology to address unmet medical needs in the infectious disease and hepatology sectors.
How the Company Makes MoneyEnanta Pharmaceuticals generates revenue primarily through strategic partnerships and collaborations with larger pharmaceutical companies. These partnerships often involve research and development collaborations, licensing agreements, and milestone payments for achieving certain development stages. Additionally, the company may receive royalties on sales of products developed in collaboration with partners. Enanta's financial model relies heavily on its ability to innovate and successfully partner with other entities to bring its drug candidates to market, thus translating its research and development efforts into revenue streams.
Enanta Pharmaceuticals Financial Statement Overview
Summary
Enanta Pharmaceuticals is facing declining revenues and persistent net losses, impacting overall profitability and cash flow. Despite a strong gross profit margin, operational inefficiencies and high net losses undermine financial performance. The balance sheet shows manageable leverage, but negative cash flows are concerning, indicating ongoing financial challenges.Income Statement
Enanta Pharmaceuticals shows a declining revenue trend, with TTM revenue decreasing from $79.2M in 2023 to $66.6M in 2024. The gross profit margin remains high at 99.1%, indicating strong control over cost of goods. However, the net profit margin is negative due to consistent net losses, reflecting ongoing profitability challenges. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has increased slightly, indicating higher leverage, yet remains manageable given the industry. The equity ratio stands at 32.1%, showing a moderate level of financial stability. However, return on equity is negative due to net losses, reflecting unproductive equity utilization. Overall, the balance sheet reflects adequate liquidity but persistent profitability issues.55
Neutral
Cash Flow
Enanta's free cash flow remains negative, with a slight growth from -$112.2M in 2023 to -$96.5M TTM 2024, indicating some improvement in cash management. The operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting earnings into cash flow. Free cash flow remains a concern, highlighting the need for better capital management strategies.50
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 66.59M | 67.64M | 79.20M | 86.16M | 97.07M | 122.47M | Gross Profit |
| 65.97M | 67.64M | 79.20M | 83.19M | 97.07M | 122.47M | EBIT |
| -110.35M | -121.69M | -137.21M | -123.84M | -109.57M | -41.64M | EBITDA |
| -94.42M | -104.51M | -123.48M | -119.22M | -104.25M | -37.99M | Net Income Common Stockholders |
| -104.93M | -116.05M | -133.82M | -121.75M | -79.00M | -36.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 216.69M | 248.19M | 369.91M | 249.23M | 244.00M | 386.65M | Total Assets |
| 348.64M | 376.65M | 462.27M | 375.41M | 438.79M | 486.13M | Total Debt |
| 57.46M | 55.47M | 26.51M | 25.26M | 5.33M | 8.10M | Net Debt |
| -26.89M | 18.23M | -58.88M | -18.73M | -51.88M | -79.03M | Total Liabilities |
| 236.83M | 247.84M | 245.54M | 54.08M | 39.36M | 30.55M | Stockholders Equity |
| 111.82M | 128.81M | 216.74M | 321.33M | 399.43M | 455.58M |
| Cash Flow | Free Cash Flow | ||||
| -96.48M | -96.71M | -112.21M | -86.91M | -70.75M | 5.64M | Operating Cash Flow |
| -70.58M | -78.76M | -103.15M | -84.78M | -70.00M | 7.09M | Investing Cash Flow |
| 140.25M | 58.23M | -53.58M | 54.90M | 36.99M | 19.83M | Financing Cash Flow |
| -25.26M | -27.63M | 198.13M | 20.03M | 3.08M | 8.98M |
Enanta Pharmaceuticals Technical Analysis
Neutral
7.27
Price Trends
6.16
Positive
7.81
Negative
10.26
Negative
Market Momentum
0.25
Positive
54.05
Neutral
35.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENTA, the sentiment is Neutral. The current price of 7.27 is below the 20-day moving average (MA) of 7.53, above the 50-day MA of 6.16, and below the 200-day MA of 10.26, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 54.05 is Neutral, neither overbought nor oversold. The STOCH value of 35.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ENTA.
Enanta Pharmaceuticals Risk Analysis
Enanta Pharmaceuticals disclosed 49 risk factors in its most recent earnings report. Enanta Pharmaceuticals reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enanta Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $142.50B | 306.43 | 2.28% | 2.69% | 6.16% | -91.54% | |
71 Outperform | $239.29B | 14.06 | 40.81% | 3.29% | 6.85% | 4577.79% | |
71 Outperform | $377.06B | 89.36 | 61.94% | 2.94% | 3.71% | -12.14% | |
64 Neutral | $125.40B | ― | -3.15% | ― | 11.64% | -114.72% | |
60 Neutral | $124.82B | ― | -39.10% | 3.93% | 7.32% | -214.24% | |
53 Neutral | $154.23M | ― | -69.10% | ― | -9.55% | 24.57% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% |
* Healthcare Sector Average
Performance Comparison
ENTA
Enanta Pharmaceuticals
7.27
-7.17
-49.65%
BMY
Bristol-Myers Squibb
59.81
9.67
19.29%
GILD
Gilead Sciences
113.99
41.03
56.24%
MRK
Merck & Company
93.35
-25.56
-21.50%
VRTX
Vertex Pharmaceuticals
495.42
82.22
19.90%
ABBV
AbbVie
212.06
38.52
22.20%
Enanta Pharmaceuticals Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: 48.37% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with significant advancements in the RSV and immunology programs and a stable financial position. However, it also highlighted challenges with a decline in revenue, increased net loss, and slower enrollment in the RSVPEDs study.Highlights
RSV Program Advancements
Progress in developing the first oral antiviral treatment for RSV, with two Phase II studies (RSVPEDs and RSVHR) ongoing and anticipation of reporting data in the second half of 2024.
Successful EDP-323 Development
EDP-323 is in a Phase IIa challenge study with anticipated data in Q3 2024, supported by positive Phase I results demonstrating favorable safety and pharmacokinetics.
Pipeline Expansion into Immunology
Introduction of a new immunology program targeting chronic spontaneous urticaria (CSU) with a goal to select a development candidate by Q4 2024.
Stable Financial Position
Enanta ended the quarter with approximately $300 million in cash and marketable securities, projecting sufficient funds to meet anticipated needs through Q3 2027.
Lowlights
Revenue Decline
Total revenue for the quarter decreased to $17.1 million from $17.8 million in the same period in 2023, primarily due to lower royalty rates.
Increased Net Loss
Net loss for the quarter was $31.2 million compared to $37.7 million in the same period in 2023, driven by increased R&D expenses and interest expenses from a previous royalty sale transaction.
Challenges in RSVPEDs Enrollment
Enrollment in the last age cohort of the RSVPEDs study is slower due to a narrower eligible population, requiring continued recruitment in the Southern Hemisphere.
Company Guidance
During the earnings call for Enanta Pharmaceuticals' fiscal second quarter of 2024, the company provided guidance on several key metrics. For the quarter, total revenue was reported at $17.1 million, primarily from royalty revenue tied to AbbVie's MAVYRET sales. The company updated its expense guidance, projecting research and development expenses to range between $125 million and $145 million, reflecting increased investment in its RSV and new immunology programs. General and administrative expenses are expected to be between $50 million and $60 million, influenced by additional stock compensation and legal costs. Enanta concluded the quarter with approximately $300 million in cash and marketable securities, anticipating this will support its existing operations through the third quarter of fiscal 2027. The company is also advancing its RSV and CSU programs, with milestones including data readouts expected in the second half of 2024 and the introduction of a second immunology program.Enanta Pharmaceuticals Corporate Events
Product-Related Announcements
Enanta Pharmaceuticals Reports Promising Results for Pediatric RSV Drug
Positive
Dec 9, 2024
Enanta Pharmaceuticals announced promising topline results from their Phase 2 pediatric study of zelicapavir, a novel oral treatment for RSV, showing significant antiviral effects and a favorable safety profile. The study involved children aged 28 days to 36 months and demonstrated a notable reduction in viral load, especially in those treated within three days of symptom onset. These results highlight zelicapavir’s potential as an effective treatment for RSV, supporting further clinical evaluation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.