Enanta Pharmaceuticals Inc (ENTA) Reports Fiscal Q4 and Full-Year Earnings Amid R&D Focus
- Total revenue for Q4 decreased to $18.9 million from $20.3 million in the same quarter last year.
- Net loss widened to $28.1 million in Q4, with a full-year net loss of $133.8 million.
- Enanta Pharmaceuticals Inc (ENTA) expects to extend its cash runway through fiscal 2027 with current assets.
- Company initiates Phase 2a Challenge Study of EDP-323 for RSV, with data expected in Q3 2024.
On November 20, 2023, Enanta Pharmaceuticals Inc (
ENTA, Financial) released its 8-K filing, detailing the financial results for its fiscal fourth quarter and year ended September 30, 2023. The company, which specializes in small molecule drugs for viral infections, reported a decrease in total revenue for the quarter to $18.9 million, down from $20.3 million in the same period last year. This decline was attributed to reduced sales of AbbVie's hepatitis C virus regimen MAVYRET/MAVIRET, from which Enanta derives royalty revenue.
Fiscal Year 2023 Financial Highlights
For the fiscal year, Enanta's total revenue was $79.2 million, a decrease from the previous year's $86.2 million. The company's R&D expenses for the quarter slightly increased to $36.2 million, while G&A expenses rose to $13.8 million due to higher legal fees associated with a patent infringement suit against Pfizer. Despite these increases, Enanta has streamlined its business operations and provided guidance for significantly lower R&D and G&A spending for fiscal 2024, aiming to support ongoing operations and extend its cash runway through fiscal 2027.
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Operational and Pipeline Developments
Enanta's President and CEO, Jay R. Luly, Ph.D., highlighted the company's focus on advancing its RSV clinical stage programs and the initiation of a Phase 2a challenge study of EDP-323, an oral treatment for RSV. The company also reported progress in its Phase 2 trials of EDP-938, another RSV treatment, with data expected in Q3 2024. Additionally, Enanta is exploring new non-virology programs and expects to announce new therapeutic programs early in 2024.
Financial Tables Summary
The condensed consolidated statements of operations reveal a net loss of $28.1 million for Q4, with a loss per diluted common share of $1.33. The full-year net loss amounted to $133.8 million, or $6.38 per diluted common share. The balance sheet shows that Enanta's cash, cash equivalents, and marketable securities totaled $370.0 million as of September 30, 2023.
Enanta provided financial guidance for fiscal year 2024, projecting R&D expenses between $100 million to $120 million and G&A expenses between $45 million to $50 million. These projections represent a reduction from the actual expenses in 2023 and include an anticipated increase in legal fees.
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