Enanta Pharmaceuticals, Inc. (NASDAQ: ENTA), a clinical-stage biotechnology firm specializing in small molecule drugs within virology and immunology, has released its financial results for the fiscal first quarter ending December 31, 2023.
The company’s President and Chief Executive Officer, Jay R. Luly, Ph.D., expressed enthusiasm for the upcoming year, highlighting plans for significant progress and value creation across Enanta’s operations. He outlined key milestones, including the anticipated release of topline data from the RSVPEDs Phase 2 study of zelicapavir for Respiratory Syncytial Virus (RSV) and the Phase 2a challenge study of EDP-323, both scheduled for the third quarter of 2024. Dr. Luly also underscored the expansion into immunology, specifically targeting Chronic Spontaneous Urticaria (CSU), a chronic inflammatory skin condition, with the development of KIT inhibitors.
Financially, Enanta reported total revenue of $18.0 million for the quarter, primarily driven by royalty revenue from worldwide sales of MAVYRET®/MAVIRET®, AbbVie’s treatment for chronic hepatitis C virus (HCV). This marked a decrease from the previous year’s revenue of $23.6 million, attributable in part to a royalty sale transaction with OMERS, resulting in interest expenses of $3.4 million. Research and development expenses decreased to $36.4 million, primarily due to reduced costs related to the COVID-19 program. General and administrative expenses increased to $16.5 million, driven by higher stock compensation expenses and legal fees associated with a patent infringement suit against Pfizer.
Enanta recorded a net loss of $33.4 million for the quarter, compared to $29.0 million in the corresponding period in 2022. However, the company maintains a solid financial position, with cash, cash equivalents, and short-term marketable securities totaling $337.2 million as of December 31, 2023. Enanta anticipates that its current financial resources, combined with future royalty revenue, will be sufficient to support its operations and development programs through fiscal year 2027.
In virology, Enanta continues its focus on RSV treatment, with ongoing studies of zelicapavir and EDP-323, targeting both pediatric and adult populations at high risk for severe RSV outcomes. In immunology, the company’s entry into CSU treatment with KIT inhibitors demonstrates a commitment to addressing unmet medical needs in chronic inflammatory diseases. Preclinical optimization of these inhibitors is ongoing, with plans to select a development candidate by late 2024 and to introduce a second immunology program within the same timeframe.
