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Enanta Pharmaceuticals Reports Financial Results for its Fiscal Third Quarter Ended June 30, 2022 With Webcast and Conference Call Today at 4:30 p.m. ET

WATERTOWN, Mass.–(BUSINESS WIRE)–Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA), a clinical-stage biotechnology company dedicated to creating small molecule drugs for viral infections and liver diseases, today reported financial results for its fiscal third quarter ended June 30, 2022.

“Currently approved COVID-19 vaccines offer less protection against infection from new SARS-CoV-2 variants, especially BA.5, and we continue to see the need for an easily accessible, once-daily oral antiviral for the treatment of COVID-19. EDP-235, as demonstrated by its positive safety, tolerability, and pharmacokinetic properties, is positioned to fill this need and to be an important tool in the global fight against this virus. We look forward to initiating a Phase 2 study in the fourth quarter of this year,” said Jay R. Luly, Ph.D., President and Chief Executive Officer of Enanta Pharmaceuticals. “We also continue to advance the rest of our pipeline, with our ongoing and planned RSV studies, including EDP-323, our L-protein inhibitor, in Phase 1 and EDP-938 in a new Phase 2 study in high-risk adults, starting in the fourth quarter of this year. Meanwhile, we remain committed to identifying a third mechanism to combine with EDP-514 and a nucleoside reverse transcriptase inhibitor (NUC), for the treatment of patients with chronic hepatitis B virus infection.”

Fiscal Third Quarter Ended June 30, 2022 Financial Results

Total revenue of $19.5 million for the three months ended June 30, 2022 consisted of royalty revenue derived primarily from worldwide net sales of AbbVie’s hepatitis C virus (HCV) regimen MAVYRET®/MAVIRET®. This compared to total revenue of $21.6 million for the three months ended June 30, 2021, which also consisted of royalty revenue from AbbVie.

Research and development expenses totaled $39.1 million for the three months ended June 30, 2022, compared to $47.0 million for the three months ended June 30, 2021. The decrease was due to the timing of activities in the company’s virology and liver disease programs year over year.

General and administrative expenses totaled $12.9 million for the three months ended June 30, 2022, compared to $8.5 million for the three months ended June 30, 2021. The increase was due to an increase in headcount and related compensation expense.

Enanta recorded an income tax benefit of $0.4 million for the three months ended June 30, 2022 due to the release of a state tax reserve during the period, compared to an income tax benefit of $9.4 million for the three months ended June 30, 2021, which was driven by a federal net loss carryback available in fiscal 2021 under the CARES Act of 2020. Enanta is still due a refund of $28.7 million for the tax losses carried back in 2021 to offset taxable income in prior years.

The net loss for the three months ended June 30, 2022 was $31.7 million, or a loss of $1.53 per diluted common share, compared to a net loss of $24.0 million, or a loss of $1.19 per diluted common share, for the corresponding period in 2021.

Enanta’s cash, cash equivalents and marketable securities totaled $292.7 million at June 30, 2022. Enanta expects that its current cash, cash equivalents and short-term and long-term marketable securities, as well as its continuing royalty revenue, will continue to be sufficient to meet the anticipated cash requirements of its existing business and development programs for the next two years.

Pipeline Update and Business Review

Respiratory Virology

COVID-19 (SARS-CoV-2)

RSV

Human Metapneumovirus (hMPV)

Liver Virology

Hepatitis B Virus (HBV)

Corporate

Upcoming Events and Presentations

Conference Call and Webcast Information

Enanta will host a conference call and webcast today at 4:30 p.m. ET. To participate in the live conference call, please dial 833-634-1237 in the U.S. or 412-317-5277 for international callers. No conference identification number is needed for the live call. A replay of the conference call will be available starting at approximately 7:30 p.m. ET on August 8, 2022, through 11:59 p.m. ET on August 22, 2022, by dialing 877-344-7529 in the U.S. or 412-317-0088 for international callers. The access code for the replay is 2895171. A live audio webcast of the call and replay can be accessed by visiting the “Events and Presentations” section on the “Investors” page of Enanta’s website at www.enanta.com.

About Enanta Pharmaceuticals, Inc.

Enanta is using its robust, chemistry-driven approach and drug discovery capabilities to become a leader in the discovery and development of small molecule drugs for the treatment of viral infections and liver diseases. Enanta’s research and development programs include clinical candidates currently in development for the following disease targets: respiratory syncytial virus (RSV), SARS-CoV-2 (COVID-19) and hepatitis B virus (HBV). Enanta is also conducting research in human metapneumovirus (hMPV).

Enanta’s research and development activities are funded by royalties from hepatitis C virus (HCV) products developed under its collaboration with AbbVie. Glecaprevir, a protease inhibitor discovered by Enanta, is part of one of the leading treatment regimens for curing chronic HCV infection and is sold by AbbVie in numerous countries under the tradenames MAVYRET® (U.S.) and MAVIRET® (ex-U.S.) (glecaprevir/pibrentasvir). Please visit www.enanta.com for more information.

Forward Looking Statements

This press release contains forward-looking statements, including statements with respect to the prospects for advancement of Enanta’s clinical programs in RSV, SARS-CoV-2 and HBV and its preclinical program in hMPV. Statements that are not historical facts are based on management’s current expectations, estimates, forecasts and projections about Enanta’s business and the industry in which it operates and management’s beliefs and assumptions. The statements contained in this release are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. Important factors and risks that may affect actual results include: the impact of development, regulatory and marketing efforts of others with respect to competitive treatments for RSV, SARS-CoV-2 and HBV; the discovery and development risks of Enanta’s programs in RSV, SARS-CoV-2, HBV and hMPV; the competitive impact of development, regulatory and marketing efforts of others in those disease areas; any continuing impact of the COVID-19 pandemic on business operations and clinical trials; Enanta’s lack of clinical development experience; Enanta’s need to attract and retain senior management and key research and development personnel; Enanta’s need to obtain and maintain patent protection for its product candidates and avoid potential infringement of the intellectual property rights of others; and other risk factors described or referred to in “Risk Factors” in Enanta’s Form 10-Q for the fiscal quarter ended March 31, 2022, and any other periodic reports filed more recently with the Securities and Exchange Commission. Enanta cautions investors not to place undue reliance on the forward-looking statements contained in this release. These statements speak only as of the date of this release, and Enanta undertakes no obligation to update or revise these statements, except as may be required by law.

Tables to Follow

ENANTA PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(in thousands, except per share amounts)
 
 

Three Months Ended

 

Nine Months Ended

June 30,

 

June 30,

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 
Revenue

$

19,479

 

$

21,624

 

$

65,843

 

$

73,499

 

Operating expenses
Research and development

 

39,090

 

 

46,994

 

 

129,726

 

 

125,165

 

General and administrative

 

12,929

 

 

8,477

 

 

32,913

 

 

24,180

 

Total operating expenses

 

52,019

 

 

55,471

 

 

162,639

 

 

149,345

 

Loss from operations

 

(32,540

)

 

(33,847

)

 

(96,796

)

 

(75,846

)

Other income, net

 

393

 

 

439

 

 

942

 

 

1,661

 

Loss before income taxes

 

(32,147

)

 

(33,408

)

 

(95,854

)

 

(74,185

)

Income tax benefit

 

447

 

 

9,384

 

 

447

 

 

19,788

 

Net loss

$

(31,700

)

$

(24,024

)

$

(95,407

)

$

(54,397

)

Net loss per share
Basic

$

(1.53

)

$

(1.19

)

$

(4.64

)

$

(2.70

)

Diluted

$

(1.53

)

$

(1.19

)

$

(4.64

)

$

(2.70

)

Weighted average common shares outstanding
Basic

 

20,710

 

 

20,201

 

 

20,552

 

 

20,155

 

Diluted

 

20,710

 

 

20,201

 

 

20,552

 

 

20,155

 

ENANTA PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands)
 

June 30,

 

September 30,

2022

 

2021

Assets
Current assets
Cash and cash equivalents

$

28,367

$

57,206

Short-term marketable securities

 

224,921

 

186,796

Accounts receivable

 

19,479

 

23,576

Prepaid expenses and other current assets

 

11,540

 

14,188

Income tax receivable

 

28,728

 

37,255

Total current assets

 

313,035

 

319,021

Long-term marketable securities

 

39,427

 

108,416

Property and equipment, net

 

4,588

 

5,943

Operating lease, right-of-use assets

 

23,493

 

4,711

Restricted cash

 

3,968

 

608

Other long-term assets

 

703

 

92

Total assets

$

385,214

$

438,791

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable

$

1,245

$

9,540

Accrued expenses and other current liabilities

 

19,191

 

22,429

Operating lease liabilities

 

2,599

 

4,203

Total current liabilities

 

23,035

 

36,172

Operating lease liabilities, net of current portion

 

22,209

 

1,126

Series 1 nonconvertible preferred stock

 

1,506

 

1,506

Other long-term liabilities

 

441

 

558

Total liabilities

 

47,191

 

39,362

Total stockholders’ equity

 

338,023

 

399,429

Total liabilities and stockholders’ equity

$

385,214

$

438,791

 

Contacts

Media and Investor Contact:
Jennifer Viera

617-744-3848

jviera@enanta.com

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