Enanta Pharmaceuticals Reports Financial Results for its Fiscal Second Quarter Ended March 31, 2014

  Enanta Pharmaceuticals Reports Financial Results for its Fiscal Second
  Quarter Ended March 31, 2014

Business Wire

WATERTOWN, Mass. -- May 12, 2014

Enanta Pharmaceuticals, Inc., (NASDAQ:ENTA), a research and
development-focused biotechnology company dedicated to creating small molecule
drugs in the infectious disease field, today reported financial results for
its fiscal second quarter ended March 31, 2014.

Fiscal Second Quarter Ended March 31, 2014 Financial Results

Revenue for the three months ended March 31, 2014 was $2.2 million, compared
to $1.2 million for the three months ended March 31, 2013. For the six months
ended March 31, 2014, revenue was $3.1 million, compared to revenue of $29.1
million for the same period in 2013. The changes in revenue for the three and
six-month periods were primarily related to the timing and amount of milestone
and other payments from collaborations, which have varied significantly from
period to period and are expected to continue to do so.

Research and development expenses totaled $4.7 million for the three months
ended March 31, 2014, compared to $3.7 million for the three months ended
March 31, 2013. For the six months ended March 31, 2014, research and
development expenses were $9.0 million, compared to $8.5 million for the same
period in 2013. The increase in the three and six month periods is primarily
due to increased spending on Enanta’s proprietary research programs.

General and administrative expenses totaled $2.6 million for the three months
ended March 31, 2014, compared to $1.5 million for the three months ended
March 31, 2013. For the six months ended March 31, 2014, general and
administrative expenses totaled $4.7 million, compared to $2.6 million for the
same period in 2013. The increase in the three and six month periods is
primarily due to an increase in stock-based compensation expense as well as
additional expenses incurred as a result of operating as a public company.

Net loss for the three months ended March 31, 2014 was $5.2 million, compared
to a net loss of $3.7 million for the same period in 2013. For the six months
ended March 31 2014, net loss was $10.6 million, compared to net income of
$18.2 million for the same period in 2013.

Cash, cash equivalents and marketable securities totaled $102.0 million at
March 31, 2014. This compares to $112.2 million at September 30, 2013. Enanta
expects that its current cash, cash equivalents and marketable securities will
be sufficient to meet its anticipated cash requirements for at least the next
24 months.

“There have been significant developments in Enanta’s partnered and
proprietary programs for hepatitis C in recent months,” commented Jay R. Luly,
Ph.D. President and Chief Executive Officer. “The recent U.S. NDA and MAA
submissions by our partner AbbVie for its genotype 1 HCV regimen is an
important step toward Enanta being part of the first wave of all-oral,
interferon-free HCV treatments. In addition, our internal programs are
advancing and we continue to explore new infectious disease areas for which we
can apply our internal chemistry expertise.”

Program and Business Review

  *AbbVie submitted a New Drug Application (NDA) to the U.S. Food and Drug
    Administration in April and Marketing Authorization Applications (MAA) to
    the European Medicines Agency in May, for its hepatitis C virus (HCV)
    regimen containing the Enanta/AbbVie collaboration’s protease inhibitor
    ABT-450. Enanta earned a $20 million milestone payment for each
    submission.
  *This quarter, Enanta’s NS5A inhibitor EDP-239, is expected to advance into
    drug combination studies in healthy volunteers with alisporivir,
    Novartis’s cyclophilin inhibitor. EDP-239 is being studied in
    collaboration with Novartis on NS5A inhibitors for the treatment of HCV
    infection.
  *Detailed data from several phase 3 studies that include the Enanta/AbbVie
    collaboration’s protease inhibitor ABT-450 were presented at the
    International Liver Congress in London and at Digestive Disease Week in
    Chicago.
  *Pre-clinical data on ABT-493, a next-generation HCV NS3/4A protease
    inhibitor identified within the Enanta/AbbVie collaboration, was presented
    at the 21^st Conference on Retroviruses and Opportunistic Infections in
    Boston. The data demonstrates that ABT-493 has a substantially improved in
    vitro profile compared to earlier generation HCV NS3/4A protease
    inhibitors and displays potent and broad genotypic activity in genotypes
    1a, 1b, 2a, 3a, 4a and 6a.

Upcoming Events and Presentations

Enanta management will participate in the following upcoming investor
conferences:

  *Jefferies 2014 Global Healthcare Conference, June 2-5, 2014
  *Wells Fargo 2014 Healthcare Conference, June 17-18, 2014
  *JMP Securities Healthcare Conference, June 24-25, 2014

Conference Call and Webcast Information

Enanta will host a conference call and webcast today at 8:30 a.m. Eastern time
to discuss these results and provide an update on its research and development
pipeline. 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 11:30 a.m.
Eastern time on May 12, 2014, through 11:59 p.m. Eastern time on May 16, 2014
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 31914722. A
live audio webcast of the call and replay will be accessible on our website at
www.enanta.com. Please visit the Investor home page of our website and search
for calendar of events. A replay of the webcast will be available on
www.enanta.com approximately two hours following the live webcast.

About Enanta

Enanta Pharmaceuticals is a research and development-focused biotechnology
company that uses its robust chemistry-driven approach and drug discovery
capabilities to create small molecule drugs in the infectious disease field.
Enanta is discovering, and in some cases, developing novel inhibitors designed
for use against the hepatitis C virus (HCV). These inhibitors include members
of three direct acting antiviral (DAA) inhibitor classes – protease (partnered
with AbbVie), NS5A (partnered with Novartis) and nucleotide polymerase – as
well as a host-targeted antiviral (HTA) inhibitor class targeted against
cyclophilin. Additionally, Enanta has created a new class of antibiotics,
called Bicyclolides, for the treatment of multi-drug resistant bacteria, with
a focus on developing an intravenous and oral treatment for hospital and
community MRSA (methicillin-resistant Staphylococcus aureus) infections.

Forward Looking Statements Disclaimer

This press release contains forward-looking statements, including statements
with respect to the prospects for approval of AbbVie’s HCV treatment regimen
containing ABT-450 for use in the U.S., the prospects for EDP-239 and Enanta’s
internal programs, and the projected sufficiency of Enanta’s cash equivalent
resources. 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
reliance on AbbVie’s planned regulatory submissions and commercialization
efforts for its treatment regimens containing ABT-450 or any additional
collaboration protease inhibitor; regulatory actions affecting approval of
treatment regimens containing ABT-450 or any additional protease inhibitors;
clinical and commercial development of competitive product candidates of
others for HCV and other viruses; 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-K for the fiscal
year ended September 30, 2013 and other periodic reports filed 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.

ENANTA PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
                                                             
                                                                   
                           Three Months Ended        Six Months Ended
                           March 31,                 March 31,
                            2014       2013       2014        2013    
                                                                   
Revenue                    $ 2,160      $ 1,196      $ 3,053       $ 29,055
Operating expenses
       Research and          4,722        3,704        8,985         8,502
       development
       General and          2,565      1,493      4,652       2,645   
       administrative
             Total
             operating      7,287      5,197      13,637      11,147  
             expenses
Income (loss) from           (5,127 )     (4,001 )     (10,584 )     17,908
operations
Other income (expense),     (76    )    252        11          300     
net
Net income (loss)            (5,203 )     (3,749 )     (10,573 )     18,208
                                                                   
Accretion of redeemable
convertible
preferred stock to           -            (1,244 )     -             (2,526  )
redemption value
Net income attributable
to participating            -          -          -           (13,670 )
securities
Net income (loss)
attributable to common     $ (5,203 )   $ (4,993 )   $ (10,573 )   $ 2,012   
stockholders
                                                                   
                                                                   
Net income (loss) per
share attributable to
common stockholders
       Basic               $ (0.28  )   $ (2.28  )   $ (0.58   )   $ 1.21
       Diluted             $ (0.28  )   $ (2.28  )   $ (0.58   )   $ 1.09
Weighted average common
shares outstanding
       Basic                 18,354       2,192        18,149        1,670
       Diluted               18,354       2,192        18,149        3,084
                                                                             

ENANTA PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
                                                             
                                                     March 31,   September 30,
                                                      2014         2013
Assets
Current assets
     Cash and cash equivalents                       $ 18,101    $   8,859
     Short-term marketable securities                  76,669        92,621
     Accounts receivable                               998           808
     Unbilled receivables                              1,604         784
     Prepaid expenses and other current assets        1,977        1,641
        Total current assets                           99,349        104,713
Property and equipment, net                            1,377         1,121
Long-term marketable securities                        7,184         10,703
Restricted cash                                       436          436
        Total assets                                 $ 108,346   $   116,973
Liabilities, Preferred Stock and Stockholders'
Equity
Current liabilities
     Accounts payable                                $ 2,041     $   1,481
     Accrued expenses                                  2,327         3,035
     Deferred revenue                                 51           10
        Total current liabilities                      4,419         4,526
Warrant liability                                      1,617         1,620
Series 1 nonconvertible preferred stock                206           -
Other long-term liabilities                           389          359
        Total liabilities                             6,631        6,505
Total stockholders' equity                            101,715      110,468
        Total liabilities, preferred stock and       $ 108,346   $   116,973
        stockholders' equity
                                                                     

Contact:

Investors
Carol Miceli, 617-607-0710
Enanta Pharmaceuticals, Inc.
cmiceli@enanta.com
or
Media
Kari Watson, 781-235-3060
MacDougall Biomedical Communications
kwatson@macbiocom.com
 
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