Enanta Pharmaceuticals(ENTA) - 2022 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $27.6 million, down from$31.7 million in the same period of 2021, entirely consisting of royalty revenue from AbbVie's HCV product sales of $427 million [27][28]. - Net loss for the quarter was$30.1 million, or a loss of $1.48 per diluted share, compared to a net loss of$8.3 million, or a loss of $0.41 per diluted share in Q1 2021 [33]. Business Line Data and Key Metrics Changes - Research and development expenses increased to$48.5 million from $36.7 million in the same period last year, primarily due to the timing of manufacturing for clinical studies [30]. - General and administrative expenses rose to$9.5 million from $7.4 million, attributed to increased headcount and compensation [31]. Market Data and Key Metrics Changes - AbbVie reported global HCV sales of$1.7 billion for calendar 2021 and guided to the same amount for 2022, indicating a flat year due to COVID-19 impacts [30][72]. Company Strategy and Development Direction - The company is focused on developing antiviral treatments for respiratory syncytial virus (RSV), COVID-19, and hepatitis B, with multiple clinical programs underway [5][22]. - Enanta aims to establish itself as a leader in the development of treatments for respiratory viruses, with a strong emphasis on high-risk patient populations for RSV and COVID-19 [16][20]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of their antiviral candidates, particularly EDP-938 for RSV and EDP-235 for COVID-19, highlighting their robust clinical data and safety profiles [11][19]. - The company expects to report top-line data from the RSVP study of EDP-938 in the next quarter and plans to initiate a Phase 1 study for EDP-323, an RSV L-inhibitor, in the second half of the year [25][16]. Other Important Information - Enanta ended the quarter with 347.7 million in cash and marketable securities, which is expected to be sufficient for at least the next two years [33]. - The company is committed to evaluating internal and external opportunities for additional compounds to enhance its hepatitis B treatment regimen [24]. Q&A Session Summary Question: What are the competitive opportunities for EDP-235? - Management indicated that the Phase 1 study is about to begin and they plan to share safety and pharmacokinetic data in the first half of the year. They believe EDP-235 has advantages in terms of pharmacokinetics and tissue targeting [35][36]. Question: How severe are RSV symptoms this season compared to previous seasons? - Management noted that they have not observed any worsening of symptoms in current studies, and the median age of participants is expected to be around 50 [39][41]. Question: What is the strategy for the L-protein inhibitor? - The company plans to target high-risk populations for the L-protein inhibitor and is exploring various ways to position the drug in combination with other agents [46][48]. Question: How will the RSVP study inform future trials? - Management stated that the RSVP study will help de-risk future studies in high-risk populations, and they are focused on targeting pediatric and transplant patients [53][80]. Question: What is the outlook for Mavyret revenues? - The company expects AbbVie's guidance of 1.7 billion in 2022 to support ongoing royalty revenues, which will help sustain operations for at least the next two years [72][76].