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Enanta Pharmaceuticals (ENTA)
NASDAQ:ENTA
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Enanta Pharmaceuticals
(NASDAQ:ENTA)
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Rating:55Neutral
Price Target:
$13.00
▲(3.09% Upside)
The overall stock score reflects significant financial challenges and valuation concerns, partially offset by positive technical indicators and promising corporate developments in RSV treatment. The financial performance remains the most critical factor, weighing heavily on the overall score.
Positive Factors
Strategic Positioning in RSV Market
Positive Phase 2b results for zelicapavir enhance Enanta's strategic position in the RSV market, potentially addressing unmet needs and driving future growth.
Innovative Drug Pipeline
Enanta's focus on HBV and NASH with innovative candidates like EDP-305 and EDP-514 highlights its commitment to addressing unmet medical needs, supporting long-term growth.
Revenue from Strategic Partnerships
Enanta's revenue model relies on strategic partnerships, providing financial stability and resources to advance its drug pipeline and sustain operations.
Negative Factors
Declining Revenue
Declining revenue indicates challenges in maintaining market share and product demand, potentially impacting long-term financial stability and growth prospects.
Negative Cash Flow
Negative cash flows suggest operational inefficiencies and cash management challenges, limiting Enanta's ability to invest in growth and innovation.
Increased Leverage
Increased leverage raises financial risk, potentially constraining Enanta's financial flexibility and ability to navigate economic uncertainties.
Enanta Pharmaceuticals (ENTA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$363.96M
Dividend YieldN/A
Average Volume (3M)342.64K
Price to Earnings (P/E)―
Beta (1Y)1.66
Revenue Growth-3.42%
EPS Growth30.03%
CountryUS
Employees131
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.87
Shares Outstanding28,862,600
10 Day Avg. Volume434,456
30 Day Avg. Volume342,637
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)3.95
Price to Sales (P/S)3.91
P/FCF Ratio-7.94
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue4.14
Enterprise Value/Gross Profit4.14
Enterprise Value/Ebitda-3.25
Forecast
1Y Price Target
$18.50Price Target Upside46.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 primarily through collaborations and partnerships with other pharmaceutical companies. The company engages in research and development agreements that often include upfront payments, milestone payments, and royalties on product sales. Significant partnerships, such as those with AbbVie for the development of antiviral therapies, play a crucial role in its revenue model. Additionally, Enanta may receive revenue from licensing agreements related to its drug candidates, further contributing to its overall earnings. The company's focus on advancing its pipeline and securing strategic collaborations is essential for maintaining and enhancing its revenue streams.
Enanta Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 06, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Feb 09, 2026
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 faces significant financial challenges, including declining revenue, negative profit margins, increased leverage, and negative cash flows. These factors indicate ongoing financial instability and operational inefficiencies.Income Statement
Enanta Pharmaceuticals has experienced declining revenue over the past few years, with a significant drop in revenue growth rate. The company has consistently reported negative net profit margins, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Despite a slight improvement in revenue growth in the most recent year, overall profitability remains a concern.35
Negative
Balance Sheet
The company's debt-to-equity ratio has increased significantly, indicating higher leverage and potential financial risk. Return on equity is negative, highlighting the company's inability to generate profit from shareholders' equity. The equity ratio has decreased, suggesting a declining proportion of equity financing. Overall, the balance sheet shows increasing financial risk and declining equity strength.40
Negative
Cash Flow
Enanta Pharmaceuticals has reported negative operating and free cash flows, indicating cash outflows from operations. The free cash flow growth rate is negative, suggesting deteriorating cash generation capability. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting income into cash. Overall, the cash flow position is weak, with significant cash management challenges.30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 64.81M | ― | 65.32M | 67.64M | 79.20M | 86.16M |
| Gross Profit | 64.81M | ― | 65.32M | 67.64M | 79.20M | 86.16M |
| EBITDA | -82.41M | ― | -70.78M | -104.51M | -123.48M | -119.22M |
| Net Income | -92.01M | ― | -81.89M | -116.05M | -133.82M | -121.75M |
Balance Sheet | ||||||
| Total Assets | 301.03M | ― | 280.73M | 376.65M | 462.27M | 380.59M |
| Cash, Cash Equivalents and Short-Term Investments | 204.11M | ― | 188.86M | 248.19M | 369.91M | 249.23M |
| Total Debt | 207.10M | ― | 201.06M | 226.06M | 222.44M | 26.69M |
| Total Liabilities | 221.75M | ― | 216.01M | 247.84M | 245.54M | 59.26M |
| Stockholders Equity | 79.28M | ― | 64.72M | 128.81M | 216.74M | 321.33M |
Cash Flow | ||||||
| Free Cash Flow | -43.57M | ― | -32.17M | -96.71M | -112.21M | -86.91M |
| Operating Cash Flow | -23.18M | ― | -19.27M | -78.76M | -103.15M | -84.78M |
| Investing Cash Flow | 57.12M | ― | 40.35M | 58.23M | -53.58M | 54.90M |
| Financing Cash Flow | -25.51M | ― | -26.62M | -27.63M | 198.13M | 20.03M |
Enanta Pharmaceuticals Technical Analysis
Negative
12.61
Price Trends
13.76
Negative
11.77
Positive
9.20
Positive
Market Momentum
-0.31
Positive
38.52
Neutral
27.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENTA, the sentiment is Negative. The current price of 12.61 is below the 20-day moving average (MA) of 14.58, below the 50-day MA of 13.76, and above the 200-day MA of 9.20, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 38.52 is Neutral, neither overbought nor oversold. The STOCH value of 27.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $284.50M | 4.51 | 75.90% | ― | ― | ― | |
55 Neutral | $363.96M | -3.29 | -84.63% | ― | -3.42% | 30.03% | |
55 Neutral | $351.87M | -4.88 | -32.21% | ― | ― | 60.40% | |
55 Neutral | $676.26M | -1.29 | -50.23% | 14.68% | ― | 89.16% | |
52 Neutral | $366.31M | -1.66 | -54.43% | ― | -100.00% | 37.10% | |
52 Neutral | $337.52M | -1.38 | -104.35% | ― | ― | 20.71% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ENTA
Enanta Pharmaceuticals
12.61
7.49
146.29%
ABEO
Abeona Therapeutics
5.25
0.06
1.16%
TECX
Tectonic Therapeutic
18.80
-22.58
-54.57%
ALLO
Allogene Therapeutics
1.63
-0.21
-11.41%
JBIO
Jade Biosciences
14.70
5.38
57.73%
NMRA
Neumora Therapeutics, Inc.
2.02
-0.04
-1.94%
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.