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Enanta Pharmaceuticals (ENTA)
NASDAQ:ENTA
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Enanta Pharmaceuticals
(NASDAQ:ENTA)
Rating:53Neutral
Price Target:
$6.00
▼(-2.60%Downside)
Positive Factors
Financial performance
Enanta received a $33.8M federal income tax refund, strengthening their balance sheet.
Immunology franchise
Enanta highlighted their emerging immunology franchise including KIT inhibitor EPS-1421 for chronic spontaneous urticaria and their new STAT6 program targeting Type 2 immune diseases.
Negative Factors
Patent litigation
Enanta filed an opening brief with the United States Court of Appeals for the Federal Circuit in their patent infringement lawsuit against Pfizer regarding Paxlovid.
Stock performance
Enanta shares have settled near multi-year lows with a lack of late-stage catalysts and visibility to approvals/market.
Enanta Pharmaceuticals (ENTA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$124.41M
Dividend YieldN/A
Average Volume (3M)149.47K
Price to Earnings (P/E)―
Beta (1Y)1.49
Revenue Growth-11.55%
EPS Growth27.32%
CountryUS
Employees131
SectorHealthcare
Sector Strength40
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.06
Shares Outstanding21,376,581
10 Day Avg. Volume94,592
30 Day Avg. Volume149,474
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)1.34
Price to Sales (P/S)0.00
P/FCF Ratio-1.53
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit1.92
Enterprise Value/Ebitda-0.32
Forecast
1Y Price Target
$16.67Price Target Upside170.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 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 Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q2-2024)
| % Change Since: 10.99%|
Next Earnings Date:Aug 11, 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 experiencing financial difficulties with declining revenue, negative profitability, and cash flow challenges. Despite a high gross profit margin and a stable equity ratio, the company struggles with operating inefficiencies and high expenses relative to revenue.Income Statement
Enanta Pharmaceuticals has been experiencing declining revenue with a negative growth rate over recent periods. The company is facing significant challenges in terms of profitability, as evidenced by negative net profit and EBIT margins. However, the gross profit margin is high, indicating that the cost of revenue is well-managed.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, suggesting balanced leverage. However, the return on equity is negative due to consistent net losses. The equity ratio is relatively stable, indicating that a fair portion of the company's assets are financed by equity.55
Neutral
Cash Flow
Operating cash flow and free cash flow remain negative, reflecting ongoing operational challenges and capital spending. Despite this, the company's ability to maintain cash reserves is noted, although cash generation from operations is a concern.50
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 64.46M | 67.64M | 79.20M | 86.16M | 97.07M | 122.47M | Gross Profit |
| 64.46M | 67.64M | 79.20M | 83.19M | 97.07M | 122.47M | EBIT |
| -102.11M | -121.69M | -137.21M | -123.84M | -109.57M | -41.64M | EBITDA |
| -87.12M | -104.51M | -123.48M | -119.22M | -104.25M | -37.99M | Net Income Common Stockholders |
| -96.42M | -116.05M | -133.82M | -121.75M | -79.00M | -36.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 193.38M | 248.19M | 369.91M | 249.23M | 244.00M | 386.65M | Total Assets |
| 322.99M | 376.65M | 462.27M | 375.41M | 438.79M | 486.13M | Total Debt |
| 58.73M | 55.47M | 26.51M | 25.26M | 5.33M | 8.10M | Net Debt |
| -1.48M | 18.23M | -58.88M | -18.73M | -51.88M | -79.03M | Total Liabilities |
| 229.46M | 247.84M | 245.54M | 54.08M | 39.36M | 30.55M | Stockholders Equity |
| 93.54M | 128.81M | 216.74M | 321.33M | 399.43M | 455.58M |
| Cash Flow | Free Cash Flow | ||||
| -82.24M | -96.71M | -112.21M | -86.91M | -70.75M | 5.64M | Operating Cash Flow |
| -55.46M | -78.76M | -103.15M | -84.78M | -70.00M | 7.09M | Investing Cash Flow |
| 77.26M | 58.23M | -53.58M | 54.90M | 36.99M | 19.83M | Financing Cash Flow |
| -25.73M | -27.63M | 198.13M | 20.03M | 3.08M | 8.98M |
Enanta Pharmaceuticals Technical Analysis
Positive
6.16
Price Trends
5.50
Positive
5.86
Positive
8.12
Negative
Market Momentum
0.12
Negative
61.14
Neutral
81.45
Negative
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 6.16 is above the 20-day moving average (MA) of 5.62, above the 50-day MA of 5.50, and below the 200-day MA of 8.12, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 61.14 is Neutral, neither overbought nor oversold. The STOCH value of 81.45 is Negative, 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 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 2 New Risks
1.
We are a smaller reporting company, and any decision on our part to comply only with reduced reporting and disclosure requirements applicable to such companies could make our common stock less attractive to investors. Q3, 2024
2.
We maintain our cash at financial institutions, often in balances that exceed federally insured limits. Q3, 2024
Enanta Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
53 Neutral | $124.41M | ― | -74.26% | ― | -11.55% | 27.32% | |
53 Neutral | $5.19B | 3.33 | -45.04% | 2.83% | 17.58% | -0.66% | |
49 Neutral | $82.82M | 13.28 | 376.84% | ― | 19.03% | ― | |
43 Neutral | $192.57M | ― | -144.90% | ― | ― | 60.51% | |
| $90.24M | ― | -20.53% | ― | ― | ― | ||
42 Neutral | $63.14M | ― | -3758.21% | ― | -100.00% | -7.66% | |
34 Underperform | $158.78M | ― | -44.50% | ― | ― | 52.54% |
* Healthcare Sector Average
Performance Comparison
ENTA
Enanta Pharmaceuticals
5.87
-6.13
-51.08%
SLS
SELLAS Life Sciences Group
1.71
0.31
22.14%
XBIT
XBiotech
2.86
-4.63
-61.82%
MCRB
Seres Therapeutics
7.05
-12.43
-63.81%
CSBR
Champions Oncology
6.18
1.68
37.33%
TIL
Instil Bio
30.35
19.31
174.91%
Enanta Pharmaceuticals Corporate Events
Executive/Board ChangesShareholder Meetings
Enanta Pharmaceuticals Stockholders Approve Key Proposals in 2025
Neutral
Mar 17, 2025
At the Annual Meeting on March 13, 2025, Enanta Pharmaceuticals’ stockholders voted on several key proposals. They re-elected two Class III directors, approved an amendment to the 2019 Equity Incentive Plan to increase shares by 800,000, decided to hold an annual advisory vote on executive compensation, approved the executive compensation, and ratified PricewaterhouseCoopers LLP as the independent auditor for the 2025 fiscal year.
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.