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A Look at Enanta Pharmaceuticals’ Financial Performance

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Top line

In 1Q18, Enanta Pharmaceuticals (ENTA) generated total revenues of $38.1 million compared with $10.4 million in 1Q17. The company derives revenues from royalties and milestone payments under its collaboration agreement with AbbVie (ABBV).

Enanta’s royalty revenues increased from $10.4 million in fiscal 1Q17 to $23.1 million in fiscal 1Q18.[1. fiscal 1Q18 ended December 2017] These royalties were on the sales of AbbVie’s Mavyret in the US and Maviret outside the US. It generated $15.0 million from milestone payments in fiscal 1Q18. 

In fiscal 1Q17, the company didn’t receive any milestone payments. This milestone payment of $15.0 million was earned on the commercialization regulatory approval of Maviret in Japan. 

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Operating expenses

In fiscal 1Q18, Enanta Pharmaceuticals incurred research and development expenses of $17.9 million compared with $12.5 million in fiscal 1Q17. The increase in research and development expenses was primarily attributable to the progression of Enanta’s preclinical and clinical activities in liver disease and virology programs. 

The company’s general and administrative expenses also increased from $4.9 million in fiscal 1Q17 to $5.7 million in fiscal 1Q18. As a result of the jump in revenues, Enanta Pharmaceuticals generated operating income of $14.3 million in fiscal 1Q18 compared with an operating loss of $7.0 million in fiscal 1Q17.

Bottom line

Enanta Pharmaceuticals incurred income tax expenses of $3.6 million in fiscal 1Q18 compared with an income tax benefit of $1.5 million in fiscal1Q17. The company generated net income of $11.6 million in fiscal1Q18 compared with a net loss of $4.9 million in fiscal1Q17. This translated into net income of $0.59 per share in fiscal 1Q18 compared with a net loss of $0.26 per share in fiscal 1Q17.

Cash flows

Enanta Pharmaceuticals generated $4.4 million from operating activities in fiscal 1Q18 compared with $3.1 million in fiscal 1Q17. The company used $2.4 million in investing activities in fiscal 1Q18. In comparison, it had generated $865,000 from investing activities in fiscal 1Q17.

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