Enanta Pharmaceuticals(US:ENTA)2020-05-07 09:24Financial Data and Key Metrics Changes - Total revenue for Q2 2020 was $27.6 million, a decrease from $39.6 million in Q2 2019, attributed to lower HCV sales due to a decline in treated patient volumes and increased competition [31][32] - Net loss for the quarter was $6 million, or a loss of $0.30 per diluted common share, compared to a net income of $4.1 million, or $0.20 per diluted common share for the same period in 2019 [35] - The company ended the quarter with approximately $435 million in cash and marketable securities, an increase of about $35 million from the previous fiscal year-end balance of $400 million [36] Business Line Data and Key Metrics Changes - Research and development expenses totaled $32.6 million, down from $34.2 million in Q2 2019, primarily due to decreased clinical trial expenses [33] - General and administrative expenses were $6.9 million, slightly up from $6.8 million in the comparable quarter of 2019 [33] Market Data and Key Metrics Changes - AbbVie expects its calendar 2020 HCV sales to be approximately $2.3 billion, impacted by lower new patient volumes due to COVID-19 [27] Company Strategy and Development Direction - The company is focusing on advancing its pipeline of novel therapies for respiratory viruses and liver diseases, leveraging its strong balance sheet and ongoing royalty revenue [28] - Enanta is prioritizing its COVID-19 antiviral drug discovery efforts, utilizing its expertise in virology and respiratory diseases [6][7] - The company plans to initiate several clinical studies, including a Phase 1b study of EDP-514 in viremic hepatitis B patients and two Phase II studies in pediatric and adult transplant patients for RSV [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the COVID-19 pandemic but expressed confidence in the company's ability to execute its business plans and advance its pipeline [28] - The company is optimistic about its ongoing studies and expects to have data from the RSVP study in the third calendar quarter of 2021 [29] Other Important Information - The company is modifying its RSV study protocols to exclude COVID-19 in potentially eligible patients [10] - Enanta is also developing a discovery program for human metapneumovirus (hMPV), which poses significant health challenges [13] Q&A Session Summary Question: Why did the INTREPID study miss its primary endpoint? - Management noted that the choice of endpoint was a high bar and that a higher placebo effect and a lack of power in the study contributed to missing the endpoint [42][43] Question: Update on antiviral development against SARS-CoV-2? - Management confirmed that efforts are ongoing, focusing on both testing existing compounds and discovering new candidates, particularly protease inhibitors [41] Question: How does the company view the outlook for entering clinical development for COVID-19? - Management emphasized the importance of early diagnosis and treatment, aiming to manage COVID-19 similarly to RSV in the future [46] Question: Comparison of monotherapy approach to combination approaches for RSV? - Management explained that while combination approaches may be beneficial, their current monotherapy with EDP-938 has a high barrier to resistance, making it a strong candidate [51] Question: Thoughts on targeting protease in COVID-19? - Management acknowledged the potential of protease inhibitors as important targets and expressed interest in exploring various direct-acting antiviral targets [53]