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 (NASDAQ: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 (NASDAQ:ENTA) 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.
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.
Looking Ahead
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.
As Enanta Pharmaceuticals Inc (NASDAQ:ENTA) continues to navigate the challenges of drug development and patent litigation, the company remains committed to its strategic focus on RSV treatments and other viral infections. With a solid cash position and a plan to reduce spending, Enanta is poised to continue its research and development efforts through fiscal 2027.
For more detailed information on Enanta Pharmaceuticals Inc (NASDAQ:ENTA)'s financial results and operational updates, investors and interested parties can access the full earnings report and listen to the webcast of the conference call on the company's website.
Explore the complete 8-K earnings release (here) from Enanta Pharmaceuticals Inc for further details.
This article first appeared on GuruFocus.
