Enanta Pharmaceuticals(ENTA) - 2026 Q1 - Quarterly Report

Financial Position - The company reported $241.9 million in cash, cash equivalents, and marketable securities as of December 31, 2025, which is expected to fund operations into fiscal 2029[71]. - As of December 31, 2025, the company had cash and cash equivalents and marketable securities totaling $241.9 million[113]. - The company received a $200.0 million cash payment in April 2023 from a royalty sale agreement, which will be recognized as a liability and reduced by payments made to OMERS over the agreement term[84]. - The fair value of the outstanding Series 1 nonconvertible preferred stock as of December 31, 2025, was $1.3 million, representing less than 10% of total liabilities[127]. - Total estimated minimum lease payments for the next five years and thereafter amount to $5.7 million for 2026, $8.7 million in 2027, $9.0 million in 2028, $9.3 million in 2029, $9.5 million in 2030, and $41.1 million thereafter[124]. - The company does not engage in off-balance sheet financing activities and has no interests in variable interest entities[119]. - The company’s future capital requirements will depend on various factors, including R&D programs, clinical trial costs, and potential collaborations[118]. Revenue and Expenses - Revenue for the three months ended December 31, 2025, was $18.6 million, an increase of $1.7 million compared to $16.9 million in the same period of 2024, primarily due to higher reported HCV sales by AbbVie[100]. - Research and development expenses decreased by $6.8 million to $20.9 million for the three months ended December 31, 2025, compared to $27.7 million in 2024[104]. - General and administrative expenses decreased by $3.8 million to $9.0 million for the three months ended December 31, 2025, compared to $12.8 million in 2024[108]. - Interest expense increased by $1.1 million for the three months ended December 31, 2025, due to increased royalties from AbbVie's product sales[109]. - Cash used in operating activities decreased by $5.1 million to $11.7 million for the three months ended December 31, 2025, compared to $16.8 million for the same period in 2024[114]. - Cash used in investing activities increased by $116.2 million to $47.3 million for the three months ended December 31, 2025, compared to cash provided of $68.9 million for the same period in 2024[115]. - Cash provided by financing activities increased by $69.1 million to $64.1 million for the three months ended December 31, 2025, compared to cash used of $5.0 million for the same period in 2024[116]. Clinical Development - The company has two clinical-stage candidates for respiratory syncytial virus (RSV): zelicapavir and EDP-323, both of which have demonstrated significant antiviral activity and favorable safety profiles in clinical studies[73][74]. - Zelicapavir has shown statistically significant reductions in RSV viral load and symptoms in a Phase 2 human challenge model, with positive topline results announced for high-risk adults and pediatric patients[76]. - EDP-323 has demonstrated sub-nanomolar potency in vitro and has shown potential for post-exposure prophylaxis against RSV infection[76]. - The company is on track to file an Investigational New Drug application for EDP-978, a KIT inhibitor for chronic spontaneous urticaria (CSU), in the first quarter of 2026, with topline Phase 1 data expected in the fourth quarter of 2026[77][81]. - The company is developing oral inhibitors targeting STAT6 for type 2 immune-driven diseases, with EPS-3903 as the lead candidate showing nanomolar potency and in vivo efficacy comparable to existing treatments[81]. - The company has a preclinical program targeting MRGPRX2 for type 2 immune-driven diseases, with prototype inhibitors demonstrating nanomolar potency and favorable pharmacokinetic properties[81]. Market Overview - The market for atopic dermatitis (AD) is projected to reach approximately $30 billion by 2030, while the combined market for asthma, chronic obstructive pulmonary disease (COPD), chronic rhinosinusitis with nasal polyps (CRSwNP), and prurigo nodularis (PN) is estimated at $35 billion[68]. - The company anticipates that its royalty revenues will depend on AbbVie's HCV market share and pricing of the MAVYRET/MAVIRET regimen[101]. - The company has not generated any revenue from its own product sales and does not expect to do so for at least the next several years[90]. - The company will continue to record 100% of HCV royalties earned under the AbbVie agreement as royalty revenue in its consolidated statements of operations[102]. Collaboration and Partnerships - The company’s collaboration with AbbVie has generated royalty revenue from the commercialization of glecaprevir, a protease inhibitor for hepatitis C virus (HCV) treatment[82]. - The company entered into a royalty sale agreement in April 2023, receiving $200.0 million for 54.5% of future quarterly royalty payments on MAVYRET/MAVIRET sales through June 30, 2032[125].