On Tuesday, Leerink Partners adjusted its price target for Enanta Pharmaceuticals (NASDAQ:ENTA), increasing it to $12.00 from the previous $10.00, while retaining a Market Perform rating on the stock. The firm's decision follows Enanta's fiscal fourth-quarter and full-year 2024 financial report which showed royalty revenues of approximately $14.6 million from Mavyret in the hepatitis C virus (HCV) market. This figure was about 25% lower than Leerink's estimate of $19.4 million and roughly 19% below the FactSet consensus of around $18 million.
Despite the lower-than-expected royalty revenues, Leerink anticipates that investors will likely shift their attention to upcoming events. These include the expected December release of Phase 2 RSVPEDs trial data for zelicapavir (zeli) and the progress of Enanta's EDP-323 respiratory syncytial virus (RSV) antiviral following encouraging top-line Phase 2 challenge study results disclosed in September.
Enanta has completed the enrollment for its RSVPEDs trial involving hospitalized and non-hospitalized RSV patients aged 28 days to 3 years, with top-line data expected in December. The company is also continuing enrollment for another Phase 2 study, RSVHR, targeting high-risk adults, which is anticipated to be completed during the current Northern Hemisphere RSV season.
Furthermore, Enanta nominated EPS-1421 ('1421) as the development candidate for its KIT inhibitor program. The candidate has demonstrated nanomolar potency and high selectivity in preclinical studies and is being positioned for chronic spontaneous urticaria (CSU) and other mast cell-driven diseases. Additionally, Enanta introduced a new STAT6 inhibitor discovery program aimed at type 2 immune diseases such as atopic dermatitis and possibly other conditions like asthma.
As of the end of the fourth fiscal quarter of 2024, Enanta reported a cash position of approximately $248 million. According to management, this amount is expected to fund the company's operations into fiscal year 2027. Following the recent financial report, Leerink has updated its model, which resulted in the revised price target.
In other recent news, Enanta Pharmaceuticals' stock price target was reduced to $20 from $26 by Baird, which maintained an Outperform rating on the stock. This followed a recent earnings report and in anticipation of upcoming clinical trial results. The fourth fiscal quarter results for Enanta were as expected, with significant focus now placed on the RSVPEDs trial results due in December. The trial is expected to be a critical factor in determining the future potential of Enanta's respiratory syncytial virus (RSV) drug candidate, zelicapavir.
Enanta Pharmaceuticals also reported promising results from its Phase 2a study of EDP-323, a treatment candidate for RSV. The study demonstrated significant reductions in viral load and clinical symptoms, suggesting a favorable safety profile for the drug. Baird and JMP Securities maintained their Outperform and Market Outperform ratings respectively for Enanta, following Pfizer (NYSE:PFE)'s decision to halt the development of its fusion inhibitor sisunatovir.
H.C. Wainwright reiterated its Buy rating on Enanta shares, emphasizing the company's proficiency in developing impactful antiviral therapies. The market is now looking forward to the results from the RSVPEDs study, which is testing zelicapavir in a pediatric patient population, expected in the fourth quarter of 2024. The study outcomes could be a pivotal milestone for Enanta, potentially advancing zelicapavir into a Phase 3 registration program.
InvestingPro Insights
To complement Leerink Partners' analysis of Enanta Pharmaceuticals (NASDAQ:ENTA), recent data from InvestingPro provides additional context for investors. The company's market capitalization stands at $180.31 million, reflecting its current position in the biotech sector. InvestingPro Tips highlight that Enanta is trading near its 52-week low and operates with a moderate level of debt, which could be significant given the company's focus on research and development.
The revenue for the last twelve months as of Q4 2024 was $67.64 million, with a concerning revenue growth of -14.61% over the same period. This aligns with the InvestingPro Tip suggesting that analysts anticipate a sales decline in the current year. Despite these challenges, it's worth noting that Enanta's liquid assets exceed its short-term obligations, potentially providing some financial flexibility as it advances its pipeline.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide valuable insights into Enanta's financial health and market position. These additional tips could be particularly relevant given the company's upcoming data releases and pipeline developments mentioned in the article.
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