Enanta Pharmaceuticals Inc (ENTA) 옵션

It defies explanation. Trailing the index and totally unloved all morning and now someone’s got a hardon for the stock in late day trading.

I just sold 10%-20% of all of my individual stock holdings, which are all biotech stocks except for NFLX which I bought during the pandemic. If things go south, which I expect, people will watch TV instead of going out.


I'm taking a different approach, adding presently a little at a time, specifically with ENTA.

Good luck to you. I hope it works out as I kept 90% of my ENTA so it will work out for me. I will revisit ENTA and other stocks I sold in a month or so.

I'm taking a different approach, adding presently a little at a time, specifically with ENTA.

Actually, this deal was announced yesterday:

https://www.prnewswire.com/news-releases/abl-bio-announces-grabody-b-brain-delivery-platform-license-agreement-with-gsk-to-develop-novel-medicines-for-neurodegenerative-diseases-302421544.html

Approximately $100M in up-front/near-term cash; $2.5B total biobucks.

Looks like a small deal with maybe a well downstream payoff for GSK to me. I am growing way more pessimistic about the market so will trim more positions today.

This market is NUTS!

Actually, this deal was announced yesterday:

https://www.prnewswire.com/news-releases/abl-bio-announces-grabody-b-brain-delivery-platform-license-agreement-with-gsk-to-develop-novel-medicines-for-neurodegenerative-diseases-302421544.html

Approximately $100M in up-front/near-term cash; $2.5B total biobucks.

Unfortunately there are no deals being done in this space with all the trashing of the economy from the tariff fiasco..

Enanta Pharmaceuticals Announces Respiratory Syncytial Virus Data Presentation at ESCMID Global 2025
Apr 08, 2025

......today announced that data from the Company’s Phase 2a human challenge study of EDP-323 in healthy adults infected with respiratory syncytial virus (RSV) has been accepted for an oral presentation as an ePoster at the European Society of Clinical Microbiology & Infectious Diseases Global 2025 (ESCMID, formerly ECCMID) being held April 11-15, 2025 in Vienna, Austria.

The oral ePoster presentation will include results from a Phase 2a human challenge study of EDP-323, a first-in-class, oral, non-nucleoside small-molecule inhibitor of the RSV polymerase (L-protein), which were announced in September 2024 and highlight new data on respiratory mucus production.

ePoster Title: “EDP-323, a First-in-Class, Oral, RSV L-Protein Inhibitor Reduces Disease Severity (Respiratory Mucus Production) and Accelerates Viral Clearance in a Human Viral Challenge Study”
ePoster Number: E0289
Abstract Number: 04019
Date and Time: April 13, 2025, 8:30 a.m. CEST/ 2:30 a.m. EDT
Session Location: Arena 1
Session Title: Novel Approaches to Antiviral Therapy
Presenter: John P. DeVincenzo, M.D.

https://ir.enanta.com/news-releases/news-release-details/enanta-pharmaceuticals-announces-respiratory-syncytial-virus

Your best guess - When would RSV deal come?

My bet is between May and early July ;)

If not, then probably will have to be near year end or early next year after the adult data.

FWIW, I added today…

How can you not able to foresee Trump will do all these crazy tariff moves?! ;) /s

I'm removing this post from a yellow sticky. Mea culpa.

ENTA uses various contract manufacturers, including some in China, but there are no new tariffs (yet) on pharmaceuticals (#msg-176012189). All told, the effect of tariffs on ENTA is likely to be negligible, IMO.

From ENTA's most recent 10-K (p.30): We do not have our own manufacturing capabilities, except with respect to limited amounts of active pharmaceutical ingredients needed for preclinical development. To date, we have relied on third-party manufacturers, including manufacturers in China, for supply of active pharmaceutical ingredients and ingredients for use in clinical trials of our product candidates. We also expect that in the future we will rely on such manufacturers to produce commercial quantities of any product candidates that we commercialize ourselves. Manufacturing for glecaprevir is conducted by AbbVie. Wherever possible, we seek to identify multiple suppliers for raw materials and key intermediaries to be used in our manufacturing process.

Manufacturing of study drug in China and TCJA. I do not know how the TCJA research and development tax write-off interacts with off-shore investigative drug manufacturing (a type of research and development). I also do not know if tariffs come into play on this type of off-shore R&D service expenditure.

Enanta disclosed that a portion of their investigative manufacturing occurs in China.

Any thoughts will be appreciated.

Yes nobody will be immune to this short term shock, and potentially long term adjustment period.

But ENTA got to be one of the least impacted by tariff in the investment universe.

I can see some upside as now US big pharms might become less keen to partner up with Chinese firms .

I agree that ENTA is a strong buy. However, let’s hope the uncertainty that has gripped the market is resolved in the short term as the current climate reduces the likelihood of a positive partnership deal.

Agreed. Also, in theory, RFK's position on vaccines could enhance the appeal of ENTA's oral RSV program.

And yet, we are below $5 here.

$ENTA fits that description to a tee. A lower interest rate also boosts the NPV of ENTA's Mavyret royalty stream from $ABBV (which runs to 2033).— Roy Friedman (@DewDiligence) April 5, 2025

Not now, no way they would take 300mm or even 400mm

300mm is lower than cash plus royalty value
400mm assumes almost zero value for the pipeline

BUT if they continue to drag their feet and burn their cash without RSV partnership and no success in their new business line for a couple years, then
300mm will become the bull case ;)

Not a perfectly relevant study, but here it is...
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Thanks meipp.
Questions follow:
1) Does the royalty license transfer to the acquiring company?
2) Thought there was a potential debt component to the royalty. Is that accounted for?
3) Do you think the board would even consider an unsolicited offer of $300-$400 million?

The value is here. Reiterating here.

Sums of parts

— Cash 230mm (account for 20mm cash burn)
— Royalty 130mm (conservative)
— RSV 100mm (even more conservative)
— Immunology and other IPs 0mm (again, conservative here)

$20pps and we all know RSV should fetch more and immunology would be another level if it works out.

Happy weekend!

I held my nose and added more today. The results of their earnest pursuit of RSV Partnership news cannot come soon enough.
GLTA.

Back below 5. Could not believe we will see this price again.

LOL...

There is nothing funny about a broad deep stock market downturn due to the reckless actions of a self-proclaimed "stable genius".

LOL...

Pharmaceuticals exempted from new tariffs—at least for now:

https://www.cnbc.com/video/2025/04/02/white-house-gold-copper-pharma-semiconductors-and-lumber-exempt-from-tariffs.html

You would think but the headlines remain ominous and this news has barely registered in the press

One can hope.....😊

Maybe some relief on Wednesday?

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=176006293

BBC and XBI made 12-month lows today, FWIW.

My point was that as far as we know Enanta has never pursued a veterinary use for any of their products.

I remember when scientists were telling us that dogs, cats, horses, deer were all becoming infected with COVID.

What is your point? Are you claiming that animals can't get infected?

Thanks I didn't know about that program - looks like it was during the days when ENTA was focused on liver disease and that pathway looked like a good target. Your point is well taken kinase inhibition for Enanta is nothing new and they have had those capabilities for a long time
I think one overlooked strength of the company is the discovery engine. Many programs didn't progress but they were able to design drugs to hit targets with good potency and safety but they just happened to make poor choices in hindsight (FXR, hep b core, etc.). STAT6 for example was considered undruggable for a small molecule according to recludix and now ENTA is right behind them

Preclinical data and the immunology program. I do not think Enanta's foray into immunology is so new. Enanta had an ASK1 inhibitor program which just sort of vanished. I often wonder why some of the programs did not get pushed into a veterinary market. I am seeing a lot of commercials for Apoquel; seems like Enanta could have done something.

I remember when scientists were telling us that dogs, cats, horses, deer were all becoming infected with COVID.

>> The data is promising but not yet good

Agree - just that we have seen others with somewhat less advanced, less promising data, less optionality, got bought out/partnership at price multiple times ENTA's current market cap :) Here, we are at negative EV. 😓

Covid data wasn’t bad, and we got nothing for it.

Agreed. If ENTA had more cash they could have pushed it forward.

RSV is good and so far crickets on partnership front

The data is promising but not yet good. We will see whether the high risk adult data looks really good later this year.

Tell me the price and I will let you know if you are right or I am ;)

Thanks for your post. To be transparent, I disagree with selling the company anytime soon.  My thoughts are to wait.  Let them execute on RSV partnership, expand their immunology programs and allow things to develop.  I'm happy to wait 3-5 more years for this to all play out according.  But alas, that's my simpleton approach.  Best to you....

Agree, just that I think we have seen some interesting deals with preclinical assets too

So who knows

I think Jay and co must be pretty pissed about the share price by now and they probably are close to accept that the best way to realize asset values is to sell the company to highest bidder.

It’s preclinical so doesn’t mean much yet. Just look at THRD with their disastrous phase 1 after touting strong preclinical data.
If ENTA can report comparable phase 1 to BPMC in a year that would be excellent we clearly know it’s no slam dunk and that at doses high enough to get good tryptase suppression hematological toxicity is a concern

I would assume many would be looking at ENTA now, if the data is indeed close to BPMC

We can all hope.

That is interesting. Hopefully good data will translate to good return for shareholders this time.

Covid data wasn’t bad, and we got nothing for it.
RSV is good and so far crickets on partnership front

I think the preclinical data is public so they can disclose. They had a slide that I think has since been removed comparing the selectivity of their candidates versus THRD for example (kinomescan)

Thank you for the note on the KIT inhibitor asset.  I have to admit I'm surprised they would disclose this. I tend to think this type of information is more or less confidential. Clearly I'm off base.

In likely unrelated news I heard back from the company today about their preclinical assets. They think their kit inhibitor may be more selective while maintaining equal potency to BPMC based on preclinical profiles

ENTA had decent support today considering that BBC* was -6%.

*BBC is the Virtus LifeSci Biotech Clinical Trials ETF, which tracks clinical-stage biotechs. BBC is the closest ticker to the “old” XBI, before XBI was reconfigured to increase the weigthing of large-cap biotech stocks.

so what do you think about a company that would benefit from less vaccine uptake (say for RSV) like enanta?

With RFKjr around, anything to do with companies associated with vaccines makes for an uninvestable space.. Doesn't matter the discount from reason..

Can we have a week or two that we don’t go down? Pls…