Â
- One of the top stock in the IPO Leaders of biotechnology industry group.
- Positive views of analysts.
- Profitable company in its first quarter unlike other biochemical companies.
- Progress in the large and growing HCV market.
- Well-financed company by 2017
Enanta Pharmaceuticals (ENTA) recently was among the stocks in the IPO Leaders screen of the biotechnology industry group, which remains one of the year's hottest.
The company shares have shown gains of 41% in the past 52 weeks. The 50-day moving average is $39.64, and the 200-day moving average is recorded at $40.76.
Looking further ahead at the long-term growth estimates for the firm, analysts are anticipating earnings per share of $0.94 for the current year. The most bullish analyst estimates earnings per share of $1.9, while the most bearish is estimating EPS of $0.53 for the year.
Here in below we take your attention to some strong reasons that caused the company to have all these positive views.
The company in a short period of time has seen its first product progress after it found the solution to create small molecule drugs for viral infections in liver diseases and also ENTA recently got a $50 million payment from AbbVie (ABBV) for Viekirax, the drug that, for certain types of hepatitis C, has won regulatory approval in Europe.
ENTA has a strong foundation for them to fuel their progress because it has approximately $227 million in cash and liquid investments. In its first quarter revenue soared more than 2,500% to $57.4 million, compared to the same quarter of a year ago. Even so the company reported $1.49 earnings per share for the quarter, missing the analysts’ consensus estimate of $1.80 by $0.31 but unlike most development-stage biotechs, Enanta has been profitable in its first quarter. The net income for its first quarter was $28.8 million compared to a net loss of $5.2 million of the quarter closed one year back.
Forward looking
In order to participate in the large and growing market the company made a strategic decision to work with pharmaceutical partners, a market that would be difficult for a small biotech to compete in alone but will be profitable if more companies join together their efforts.
When the next hepatitis C virus rival treatment will come to the market (within the end of 2017), the company will be well financed and ready to fight the new competitor’s product without compromising its cash.
Enanta is also expecting approval in Japan after a positive Phase 3 trial. However, the HCV field is intensely competitive, and it may takes time to gauge the product's performance.
About the company
Enanta Pharmaceuticals, Inc. is a research and development-focused biotechnology company which uses its chemistry-driven approach and drug discovery capabilities to create small molecule drugs primarily in the infectious disease field The company is developing novel protease, NS5A, cyclophilin and nucleotide polymerase inhibitors targeted against the hepatitis C virus. Additionally, it has created a new class of macrolide antibiotics known as Bicyclolides that overcomes bacterial resistance. In addition, the company has a bicyclolide antibiotic in early clinical development with the National Institute of Allergy and Infectious Diseases (NIAID) for the treatment of multi-drug resistant bacterial infections.
