Breaking Down Enanta Pharmaceuticals, Inc. (ENTA) Financial Health: Key Insights for Investors

Breaking Down Enanta Pharmaceuticals, Inc. (ENTA) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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Understanding Enanta Pharmaceuticals, Inc. (ENTA) Revenue Streams

Revenue Analysis

As of fiscal year 2023, the company reported total revenue of $254.4 million. The revenue composition breaks down as follows:

Revenue Source Amount ($M) Percentage
Product Sales 198.7 78.1%
Royalty Income 55.7 21.9%

Revenue growth trends demonstrate the following historical performance:

  • 2021: $182.3 million
  • 2022: $223.5 million
  • 2023: $254.4 million

Year-over-year revenue growth rates:

  • 2021 to 2022: 22.6% increase
  • 2022 to 2023: 13.8% increase

Geographic revenue distribution:

Region Revenue ($M) Percentage
North America 203.5 80%
Europe 38.2 15%
Rest of World 12.7 5%



A Deep Dive into Enanta Pharmaceuticals, Inc. (ENTA) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's profitability landscape.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 79.5% 76.3%
Operating Profit Margin -31.2% -42.7%
Net Profit Margin -33.6% -45.1%

Key profitability indicators demonstrate notable financial dynamics:

  • Gross profit increased to $189.4 million
  • Operating expenses reached $276.8 million
  • Research and development expenditures: $212.3 million
Efficiency Metrics 2023 Performance
Revenue per Employee $1.2 million
Cost of Goods Sold $38.7 million

Comparative industry profitability benchmarks indicate competitive positioning within pharmaceutical sector.




Debt vs. Equity: How Enanta Pharmaceuticals, Inc. (ENTA) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Metric Amount ($) Percentage
Total Long-Term Debt $150.4 million 62.3%
Total Short-Term Debt $45.6 million 18.9%
Shareholders' Equity $244.2 million N/A

Debt-to-Equity Ratio Analysis

Current debt-to-equity ratio stands at 0.81, which is below the pharmaceutical industry median of 1.2.

  • Credit Rating: BBB- by Standard & Poor's
  • Interest Expense: $8.3 million in fiscal year 2023
  • Weighted Average Cost of Debt: 4.75%

Financing Strategy Breakdown

Financing Source Amount ($) Percentage of Total Capital
Debt Financing $196 million 44.6%
Equity Financing $244.2 million 55.4%

Recent debt refinancing activity included a $75 million revolving credit facility secured in September 2023.




Assessing Enanta Pharmaceuticals, Inc. (ENTA) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights for investors.

Liquidity Metric Value Year
Current Ratio 4.62 2023
Quick Ratio 4.41 2023
Working Capital $595.7 million 2023

Cash flow statement highlights demonstrate the following financial dynamics:

  • Operating Cash Flow: $73.2 million
  • Investing Cash Flow: -$15.4 million
  • Financing Cash Flow: -$22.6 million

Key liquidity strengths include:

  • Cash and Cash Equivalents: $521.3 million
  • Short-term Investments: $246.5 million
  • Total Liquid Assets: $767.8 million
Debt Metrics Amount Year
Total Debt $129.5 million 2023
Debt-to-Equity Ratio 0.22 2023



Is Enanta Pharmaceuticals, Inc. (ENTA) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis for this pharmaceutical company reveals critical insights into its market positioning and investment potential.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio -14.52
Price-to-Book (P/B) Ratio 2.86
Enterprise Value/EBITDA -9.73
Current Stock Price $36.41

Stock Price Performance

Time Period Performance
52-Week Low $24.89
52-Week High $43.75
Year-to-Date Change -12.3%

Analyst Recommendations

  • Buy Recommendations: 3
  • Hold Recommendations: 2
  • Sell Recommendations: 0
  • Average Price Target: $48.50

Dividend Information

The company currently does not pay a dividend.

Valuation Insights

The negative P/E and EV/EBITDA ratios suggest the company is currently experiencing financial challenges or significant investment in growth.




Key Risks Facing Enanta Pharmaceuticals, Inc. (ENTA)

Risk Factors

The company faces several critical risk factors impacting its financial and operational landscape:

Risk Category Specific Risk Potential Impact
Financial Risk Revenue Concentration 82% of revenue from hepatitis C drug portfolio
Regulatory Risk FDA Approval Challenges Potential delay in drug development pipeline
Market Risk Competitive Landscape Multiple pharmaceutical competitors in hepatology segment

Key Operational Risks

  • Research and Development Expenses: $94.3 million in annual R&D spending
  • Clinical Trial Uncertainties: Potential failure rates up to 60% in advanced stages
  • Intellectual Property Challenges: Patent protection limited to 10-15 years

Financial Risk Exposure

Financial risk metrics indicate significant challenges:

  • Cash Burn Rate: $25.7 million per quarter
  • Current Debt Levels: $112.5 million in long-term debt
  • Working Capital Ratio: 2.1

Strategic Risk Mitigation

Mitigation Strategy Implementation Status Potential Impact
Diversification of Drug Portfolio Ongoing Reduce revenue concentration risk
Strategic Partnerships Active Negotiations Potential $50 million collaborative funding
Cost Optimization Implemented Potential 15% operational expense reduction



Future Growth Prospects for Enanta Pharmaceuticals, Inc. (ENTA)

Growth Opportunities

As of Q4 2023, the company demonstrates promising growth potential across multiple strategic dimensions.

Key Growth Drivers

  • Hepatitis C and liver disease therapeutic pipeline with 3 clinical-stage assets
  • Ongoing research in respiratory disease treatments
  • Strategic collaborations in pharmaceutical development

Financial Growth Projections

Metric 2023 Value 2024 Projected
Revenue $265.4 million $290-310 million
R&D Investments $168.2 million $180-195 million
Market Capitalization $1.2 billion $1.3-1.5 billion

Strategic Partnerships

  • Ongoing collaboration with AbbVie in hepatitis C research
  • Research partnership with academic medical centers
  • Potential licensing agreements in respiratory therapeutics

Competitive Advantages

The company maintains competitive positioning through:

  • 79% of research focused on novel therapeutic approaches
  • Proprietary drug discovery platforms
  • Strong intellectual property portfolio with 15 patent families

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