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Enanta Pharmaceuticals (ENTA)
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Enanta Pharmaceuticals (ENTA) AI Stock Analysis

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ENTA

Enanta Pharmaceuticals

(NASDAQ:ENTA)

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Neutral 47 (OpenAI - 4o)
Rating:47Neutral
Price Target:
$11.00
▲(0.09% Upside)
Enanta Pharmaceuticals' overall stock score is primarily impacted by its poor financial performance, characterized by significant losses and cash flow issues. While technical analysis shows some positive momentum, the negative valuation metrics further weigh down the score. The absence of earnings call insights and corporate events leaves the financial and technical aspects as the primary determinants of the score.
Positive Factors
Innovative Drug Development
Enanta's focus on developing innovative therapeutics for viral infections positions it well in the biotech industry, leveraging cutting-edge research to address significant health challenges, which can drive long-term growth and market relevance.
Positive Clinical Trial Results
The positive results from the Phase 2b trial for zelicapavir indicate a promising pipeline, enhancing the company's potential for future revenue streams and strengthening its competitive position in the antiviral market.
Strategic Partnerships
Collaborations with major pharmaceutical companies like AbbVie provide Enanta with financial support through royalties and milestone payments, bolstering its financial stability and enabling continued investment in R&D.
Negative Factors
Financial Health Challenges
Ongoing financial challenges, including consistent losses and cash flow issues, threaten Enanta's ability to sustain operations and invest in future growth, potentially limiting its long-term viability.
High Leverage
A high debt-to-equity ratio indicates reliance on debt financing, which can strain cash flow and limit financial flexibility, posing risks to Enanta's long-term financial health and operational stability.
Negative Profit Margins
Persistently negative profit margins reflect operational inefficiencies and hinder Enanta's ability to generate sustainable profits, impacting its capacity to reinvest in business development and innovation.

Enanta Pharmaceuticals (ENTA) vs. SPDR S&P 500 ETF (SPY)

Enanta Pharmaceuticals Business Overview & Revenue Model

Company DescriptionEnanta Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs for the treatment of viral infections and liver diseases. Its research and development disease targets include respiratory syncytial virus, SARS-CoV-2, human metapneumovirus, and hepatitis B virus. The company has a collaborative development and license agreement with Abbott Laboratories to identify, develop, and commercialize HCV NS3 and NS3/4A protease inhibitor compounds, including paritaprevir and glecaprevir for the treatment of chronic hepatitis C virus. Enanta Pharmaceuticals, Inc. was founded in 1995 and is headquartered in Watertown, Massachusetts.
How the Company Makes MoneyEnanta Pharmaceuticals generates revenue through various streams, primarily including royalties, collaborations, and licensing agreements. The company earns royalties from its partnerships with larger pharmaceutical companies, particularly from the sales of its antiviral treatments. Enanta has established significant collaborations, such as with AbbVie for the development of HBV therapies, which provide upfront payments and potential milestone payments tied to clinical progress. Additionally, the company seeks to monetize its research and development through licensing deals that allow other companies to develop and commercialize its drug candidates, thereby generating revenue from these agreements as well.

Enanta Pharmaceuticals Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q2-2024)
|
% Change Since: |
Next Earnings Date:Nov 17, 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.
Q2-2024 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview

Summary
Enanta Pharmaceuticals is facing significant financial challenges, with consistent losses and declining financial health. The company has high leverage, negative profitability, and cash flow issues, which pose risks to its financial stability. Despite a temporary increase in revenue, the overall trajectory remains concerning.
Income Statement
35
Negative
Enanta Pharmaceuticals has experienced a significant decline in revenue over the past few years, with a TTM revenue growth rate of 53.2% being an anomaly compared to previous negative growth rates. The company consistently reports negative net profit margins, with the TTM net profit margin at -141.98%, indicating ongoing profitability challenges. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.
Balance Sheet
40
Negative
The company's debt-to-equity ratio has increased significantly to 2.61 in the TTM period, indicating a higher reliance on debt financing. The return on equity is negative, suggesting that the company is not generating sufficient returns on shareholder investments. The equity ratio has decreased over time, reflecting a weakening financial position.
Cash Flow
30
Negative
Enanta Pharmaceuticals has negative operating and free cash flows, with a TTM free cash flow growth rate of -47.02%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some efficiency in converting net income to free cash flow, but overall cash flow health is poor.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue64.81M67.64M79.20M86.16M97.07M122.47M
Gross Profit64.81M67.64M79.20M86.16M97.07M122.47M
EBITDA-82.41M-104.51M-123.48M-119.22M-104.25M-37.99M
Net Income-92.01M-116.05M-133.82M-121.75M-79.00M-36.17M
Balance Sheet
Total Assets301.03M376.65M462.27M375.41M438.79M486.13M
Cash, Cash Equivalents and Short-Term Investments204.11M248.19M369.91M249.23M244.00M386.65M
Total Debt207.10M226.06M26.51M25.26M5.33M9.58M
Total Liabilities221.75M247.84M245.54M54.08M39.36M30.55M
Stockholders Equity79.28M128.81M216.74M321.33M399.43M455.58M
Cash Flow
Free Cash Flow-43.57M-96.71M-112.21M-86.91M-70.75M5.64M
Operating Cash Flow-23.18M-78.76M-103.15M-84.78M-70.00M7.09M
Investing Cash Flow57.12M58.23M-53.58M54.90M36.99M19.83M
Financing Cash Flow-25.51M-27.63M198.13M20.03M3.08M8.98M

Enanta Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.99
Price Trends
50DMA
9.92
Positive
100DMA
8.76
Positive
200DMA
7.44
Positive
Market Momentum
MACD
0.21
Positive
RSI
54.91
Neutral
STOCH
53.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENTA, the sentiment is Positive. The current price of 10.99 is above the 20-day moving average (MA) of 10.90, above the 50-day MA of 9.92, and above the 200-day MA of 7.44, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 54.91 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENTA.

Enanta Pharmaceuticals Risk Analysis

Enanta Pharmaceuticals disclosed 50 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
50
Neutral
$214.86M6.6648.34%
47
Neutral
$317.09M-80.64%-9.94%20.81%
42
Neutral
$361.60M-5.02-32.21%60.40%
41
Neutral
$232.98M-54.43%-100.00%37.10%
39
Underperform
$293.64M-0.30-38.06%26.12%72.33%
33
Underperform
$451.83M-1.78-104.35%20.71%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ENTA
Enanta Pharmaceuticals
10.99
0.12
1.10%
ABEO
Abeona Therapeutics
4.20
-2.23
-34.68%
TECX
Tectonic Therapeutic
19.32
-26.75
-58.06%
ALLO
Allogene Therapeutics
1.18
-1.91
-61.81%
JBIO
Jade Biosciences
9.19
-0.43
-4.47%
NMRA
Neumora Therapeutics, Inc.
2.56
-11.08
-81.23%

Enanta Pharmaceuticals Corporate Events

Private Placements and Financing
Enanta Pharmaceuticals Announces Public Stock Offering
Neutral
Oct 1, 2025

On September 30, 2025, Enanta Pharmaceuticals announced a public offering of 6,500,000 shares of its common stock at $10.00 per share, with an option for underwriters to purchase an additional 975,000 shares. The expected net proceeds of approximately $60.6 million will support the company’s operations, with the offering set to close on October 2, 2025, subject to customary conditions.

The most recent analyst rating on (ENTA) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Enanta Pharmaceuticals stock, see the ENTA Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Enanta Pharmaceuticals Announces Positive Phase 2b Results
Positive
Sep 29, 2025

On September 29, 2025, Enanta Pharmaceuticals announced positive topline results from its Phase 2b study of zelicapavir in high-risk adults for the treatment of respiratory syncytial virus (RSV). The study demonstrated a clinically meaningful reduction in symptom duration, supporting further development towards a Phase 3 trial. This advancement positions Enanta strategically in the RSV treatment market, potentially addressing significant unmet needs for high-risk populations, including older adults and those with chronic heart or lung diseases.

The most recent analyst rating on (ENTA) stock is a Sell with a $7.00 price target. To see the full list of analyst forecasts on Enanta Pharmaceuticals stock, see the ENTA Stock Forecast page.

Product-Related Announcements
Enanta Pharmaceuticals Announces Positive Phase 2b RSV Study Results
Positive
Sep 29, 2025

On September 29, 2025, Enanta Pharmaceuticals announced positive topline data from its Phase 2b study of zelicapavir for treating respiratory syncytial virus (RSV) in high-risk adults. The study showed that zelicapavir, a novel N-protein inhibitor, significantly improved the time to complete resolution of RSV symptoms and demonstrated a favorable safety profile. The results suggest potential for zelicapavir as a first-in-class RSV treatment, reducing symptom duration and hospitalization rates in high-risk adults.

The most recent analyst rating on (ENTA) stock is a Sell with a $7.00 price target. To see the full list of analyst forecasts on Enanta Pharmaceuticals stock, see the ENTA Stock Forecast page.

Executive/Board Changes
Enanta Pharmaceuticals Appoints Interim Financial Officers
Neutral
Aug 27, 2025

On August 26, 2025, Enanta Pharmaceuticals appointed Harry R. Trout, III as interim principal financial officer and Kathleen S. Capps as interim principal accounting officer during the medical leave of Paul J. Mellett, the Chief Financial and Administrative Officer. This interim leadership change ensures continuity in the company’s financial operations, with both appointees having extensive experience within the company and the industry.

The most recent analyst rating on (ENTA) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Enanta Pharmaceuticals stock, see the ENTA Stock Forecast page.

Legal Proceedings
Enanta Pharmaceuticals Sues Pfizer Over Patent Infringement
Negative
Aug 20, 2025

On August 20, 2025, Enanta Pharmaceuticals announced it filed a patent infringement lawsuit against Pfizer Inc. in the Unified Patent Court of the European Union. The suit seeks to determine liability for the use and infringement of Enanta’s European Patent No. EP 4 051 265 in relation to Pfizer’s COVID-19 antiviral, Paxlovid™, across 18 EU countries. This legal action follows the recent grant of the patent by the European Patent Office and parallels ongoing U.S. litigation concerning a related patent. The outcome of this case could significantly impact Enanta’s market position and financial performance, as well as influence its reputation and stock market valuation.

The most recent analyst rating on (ENTA) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Enanta Pharmaceuticals stock, see the ENTA Stock Forecast page.

Enanta Pharmaceuticals Reports Steady Progress in Q3 2025
Aug 12, 2025

Enanta Pharmaceuticals, Inc. is a clinical-stage biotechnology company focused on developing small molecule drugs for viral infections and immunological diseases, with a robust pipeline targeting respiratory syncytial virus (RSV) and inflammatory diseases.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 23, 2025