On Tuesday, Enanta Pharmaceuticals (NASDAQ:ENTA), currently trading at $6.37 with a market cap of $135 million, experienced a change in its stock outlook as H.C. Wainwright adjusted the price target to $18.00, a decrease from the previous target of $27.00. Despite this change, the firm maintained a Buy rating on the company’s stock. According to InvestingPro data, the stock has declined nearly 48% over the past six months.
On December 9, Enanta announced results from its RSVPEDs study, which is a Phase 2 trial involving the drug zelicapavir aimed at treating pediatric patients with Respiratory Syncytial Virus (RSV). The study encompassed children from 28 days to 36 months of age and included both hospitalized and non-hospitalized participants.
The trial met its primary virology endpoint, demonstrating a significant reduction in peak viral load. Specifically, the results showed a 0.7 log reduction on Day 9 when compared to a placebo. This finding was consistent across different age groups and in both the hospitalized and outpatient settings.
Following the announcement of these results, H.C. Wainwright has revised its model for Enanta, leading to a reduction in the price target. The new target reflects adjustments made by the firm based on the latest data from the RSVPEDs study. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 5.21, though it’s currently burning through cash with negative free cash flow.
The analyst’s decision to lower the price target is directly tied to the outcomes of the recent clinical trial and subsequent changes to their financial model for Enanta. However, the continued Buy rating suggests that the firm still sees potential value in the stock despite the adjusted price target. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report, offering deeper analysis of Enanta’s financial health and growth prospects.
In other recent news, Enanta Pharmaceuticals has faced a significant legal setback as the United States District Court of Massachusetts ruled in favor of Pfizer Inc. (NYSE:PFE) in a patent infringement lawsuit over Pfizer’s COVID-19 drug, Paxlovid. The court declared Enanta’s patent invalid. Despite this, Enanta has expressed its intention to appeal the court’s decision.
Recent financial data shows a decline in Enanta’s revenue by 14.61% over the last twelve months, underlining the importance of this legal outcome. In the realm of analyst adjustments, Leerink Partners raised Enanta’s price target to $12 from $10, while Baird reduced its price target for Enanta to $20 from $26, maintaining an Outperform rating on the stock. H.C. Wainwright reiterated its Buy rating on Enanta shares.
In the field of drug development, Enanta reported promising results from its Phase 2a study of EDP-323, a treatment candidate for respiratory syncytial virus (RSV). The company also nominated EPS-1421 as the development candidate for its KIT inhibitor program. The market is now looking forward to the results from the RSVPEDs study, which is testing zelicapavir in a pediatric patient population.
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