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Enanta Pharmaceuticals Reports Financial Results for its Fiscal Second Quarter Ended
March 31, 2018

WATERTOWN, Mass., May 8, 2018 – Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA), a research and development-focused biotechnology company dedicated to creating small molecule drugs for viral infections and liver diseases, today reported financial results for its fiscal second quarter ended March 31, 2018.

Enanta’s results for the quarter benefited from $44 million of royalty revenue on AbbVie’s $919 million in sales of its HCV regimens that contain either of the two protease inhibitor products developed through Enanta’s collaboration with AbbVie. Enanta earns its annually tiered, per product royalties on a portion of AbbVie’s net sales allocated to Enanta’s protease inhibitor product in each HCV regimen. In the case of MAVYRET™ (U.S.)/ MAVIRET™ (ex-U.S.) (glecaprevir/pibrentasvir), Enanta’s royalty is based on 50% of AbbVie’s net sales of that combination.

“Our strong financial results this quarter were driven by royalty revenue earned on AbbVie’s sales of MAVYRET, which reached $850 million in sales in the quarter,” commented Jay R. Luly. Ph.D., President and Chief Executive Officer, Enanta. “This royalty revenue supports our three clinical-stage programs in NASH, PBC and RSV, all of which have now been granted Fast Track designation by the U.S. FDA. We are looking forward to having preliminary data from our Phase 1 study of EDP-938 next quarter and initiating our planned Phase 2 RSV challenge study of EDP-938 in the last quarter of calendar 2018. We also plan to designate a candidate compound for HBV later this year.”

Enanta’s cash, cash equivalents and short-term and long-term marketable securities totaled $288.9 million at March 31, 2018. This compares to a total of $293.7 million at September 30, 2017. Enanta expects that its current cash, cash equivalents and marketable securities, will be sufficient to meet the anticipated cash requirements of its existing business and development programs for the foreseeable future.

Total revenue for the three months ended March 31, 2018 was $44.0 million, compared to $9.0 million for the three months ended March 31, 2017. The increase in revenue was due to an increase in royalties earned on AbbVie’s worldwide net sales of HCV regimens as a result of the launch of MAVYRET™/MAVIRET™ in major markets in the second half of 2017. For the three months ended March 31, 2017, revenue consisted exclusively of royalties earned on AbbVie’s worldwide net sales of HCV regimens containing paritaprevir. Royalties have varied significantly from period to period, and that variability may continue in the future.

Research and development expenses totaled $21.5 million for the three months ended March 31, 2018, compared to $13.0 million for the three months ended March 31, 2017. The increase in research and development expenses was primarily due to increased preclinical and clinical costs associated with the progression of Enanta’s wholly-owned R&D programs in non-alcoholic steatohepatitis (NASH), primary biliary cholangitis (PBC), respiratory syncytial virus (RSV) and hepatitis B virus (HBV).

General and administrative expenses totaled $5.7 million for the three months ended March 31, 2018, which was consistent with the $5.5 million of such expenses for the three months ended March 31, 2017.

Enanta recorded income tax expense of $5.4 million for the three months ended March 31, 2018, compared to an income tax benefit of $3.6 million for the three months ended March 31, 2017. During the three months ended March 31, 2018, income tax expense reflected the significant increase in pre-tax income during the quarter as well as an increase in Enanta’s estimated annual effective tax rate for fiscal 2018. Enanta’s estimated annual effective tax rate for fiscal 2018 of 27.1 percent includes the impact of a non-cash revaluation charge against deferred tax assets to reflect the reduced federal corporate income tax rate as a result of the enactment of the U.S. Tax Cuts and Jobs Act.

Net income for the three months ended March 31, 2018 was $12.6 million, or $0.61 per diluted common share, compared to a net loss of $5.4 million, or $(0.28) per diluted common share, for the corresponding period in 2017.

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 (855) 840-0595 in the U.S. or (518) 444-4814 for international callers. A replay of the conference call will be available starting at approximately 7:30 p.m. ET on May 8, 2018, through 11:59 p.m. ET on May 11, 2018 by dialing (855) 859-2056 from the U.S. or (404) 537-3406 for international callers. The passcode for both the live call and the replay is 3238478. A live audio webcast of the call and replay can be accessed by visiting the “Events and Presentation” section on the “Investors” page of Enanta’s website at www.enanta.com.

About Enanta
Enanta Pharmaceuticals has used its robust, chemistry-driven approach and drug discovery capabilities to become a leader in the discovery of small molecule drugs for the treatment of viral infections and liver diseases. Two protease inhibitors, glecaprevir and paritaprevir, discovered and developed through Enanta’s collaboration with AbbVie, have now been approved in jurisdictions around the world as part of AbbVie’s direct-acting antiviral (DAA) regimens for the treatment of hepatitis C virus (HCV) infection, including the regimens marketed as MAVYRET™ (U.S.) and MAVIRET™ (ex-U.S.) (glecaprevir/pibrentasvir) and VIEKIRA PAK® (paritaprevir/ritonavir/ombitasvir/dasabuvir) (U.S.) and VIEKIRAX® (paritaprevir/ritonavir/ombitasvir) (ex-U.S.).

Royalties from the AbbVie collaboration are helping to fund Enanta’s research and development efforts, which are currently focused on the following disease targets: non-alcoholic steatohepatitis (NASH), primary biliary cholangitis (PBC), respiratory syncytial virus (RSV) and hepatitis B virus (HBV). 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 AbbVie’s MAVYRET/MAVIRET regimen in HCV and the prospects for advancement of Enanta’s earlier stage programs in NASH, PBC, RSV and HBV. 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: Enanta’s revenues are dependent upon the success of AbbVie’s continuing commercialization efforts for its HCV treatment regimens, primarily its new MAVYRET/MAVIRET regimen; competitive pricing, market acceptance and reimbursement rates for AbbVie’s HCV treatment regimens compared to competitive HCV products on the market; the discovery and development risks of early stage discovery efforts in other disease areas such as NASH, PBC, RSV and HBV; potential competition from the development efforts of others in those other disease areas; Enanta’s lack of clinical development experience; Enanta’s need to attract and retain senior management and key scientific 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 most recent Form 10-Q for the quarter ended December 31, 2017 and 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.

Media Contact
Kari Watson
MacDougall Biomedical Communications
781-235-3060
kwatson@macbiocom.com

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

		Three Months Ended						Six Months Ended
		March 31,						March 31,
		2018			2017			2018			2017
Revenue		$	44,049		$	8,959		$	82,158		$	19,376
Operating expenses
	Research and development		21,484			13,004			39,446			25,530
	General and administrative		5,706			5,461			11,476			10,398
	Total operating expenses		27,190			18,465			50,922			35,928
Income (loss) from operations			16,859			(9,506	)		31,236			(16,552	)
Other income, net			1,066			549			2,026			1,073
Income (loss) before income taxes			17,925			(8,957	)		33,262			(15,479	)
Income tax (expense) benefit			(5,370	)		3,565			(9,014	)		5,107
Net income (loss)		$	12,555		$	(5,392	)	$	24,248		$	(10,372	)

Net income (loss) per share
	Basic	$	0.65		$	(0.28	)	$	1.27		$	(0.54	)
	Diluted	$	0.61		$	(0.28	)	$	1.20		$	(0.54	)

Weighted average common shares outstanding
	Basic		19,206			19,047			19,167			19,042
	Diluted		20,601			19,047			20,256			19,042

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

			March 31,		September 30,
			2018		2017
Assets
Current assets
	Cash and cash equivalents		$	66,926	$	65,675
	Short-term marketable securities			189,797		157,994
	Accounts receivable			44,049		10,614
	Prepaid expenses and other current assets			4,905		3,536
		Total current assets		305,677		237,819
Long-term marketable securities				32,186		70,038
Property and equipment, net				8,616		8,049
Deferred tax assets				7,567		10,123
Restricted cash				608		608
		Total assets	$	354,654	$	326,637

Liabilities and Stockholders' Equity
Current liabilities
	Accounts payable		$	4,696	$	3,714
	Accrued expenses and other current liabilities			7,041		7,970
	Income taxes payable			5,380		9,298
		Total current liabilities		17,117		20,982
Warrant liability				-		807
Series 1 nonconvertible preferred stock				1,528		762
Other long-term liabilities				2,607		2,410
		Total liabilities		21,252		24,961
Total stockholders' equity				333,402		301,676
		Total liabilities and stockholders' equity	$	354,654	$	326,637