Enanta Revenue Falls 21% as Royalty Decline Offsets Pipeline Progress
The biotech posted $14.4 million in fiscal third-quarter revenue, down 21% from a year earlier on weaker AbbVie hepatitis C royalties.
Enanta Pharmaceuticals (ENTA), a biotechnology company focused on antiviral and immunology therapies, reported fiscal third-quarter revenue of $14.4 million, down 21% from $18.3 million a year earlier, as royalty payments tied to AbbVie's hepatitis C drug MAVIRET continued to erode. The decline also marked a 16% drop from the $17.2 million recorded in the second quarter, underscoring the accelerating pressure on the company's primary revenue stream.
The quarterly weakness was partially offset by stronger performance earlier in the fiscal year. For the nine months ended June 30, revenue held roughly flat at $50.1 million compared with $50.2 million in the same period of 2024, as first-half results masked the third-quarter softness. The revenue trajectory nonetheless points to a business increasingly dependent on pipeline catalysts rather than legacy royalties.
Research and development expenses told a more nuanced story. On a year-over-year basis, R&D spending fell 19% to $22.1 million, reflecting the wind-down of earlier respiratory syncytial virus clinical trials. Over nine months, the decline was steeper at 25%, with R&D costs dropping to $62.4 million from $82.9 million. Sequentially, however, spending rose 14% from $19.4 million in the second quarter as Enanta ramped up activity in its immunology programs and new RSV trial work.
General and administrative expenses edged lower to $9.5 million from $10.0 million a year ago, driven by reduced stock-based compensation. Interest expense more than doubled year over year to $4.1 million, a function of higher forecasted AbbVie royalty revenue increasing the amortization of the company's OMERS royalty liability. That line item has climbed steadily over the past four quarters, from $2.4 million in the fiscal fourth quarter of 2024.
The net loss widened to $19.5 million, or $0.67 a share, from $18.3 million, or $0.85 a share, a year earlier. The per-share improvement came despite the larger loss because weighted average shares outstanding rose 36% to 29.1 million, reflecting the October 2024 public offering that raised $74.8 million in gross proceeds. That capital raise helped lift cash and marketable securities to $211.5 million at June 30 from $188.9 million at the prior fiscal year-end, though the balance declined $15.5 million from the prior quarter.
On the pipeline front, Enanta advanced several programs. Zelicapavir, its RSV treatment candidate, moved from enabling activities to a confirmed registrational Phase 2b/3 trial called RESOLVE, with initiation on track for the fourth quarter of 2025 following a successful End-of-Phase 2 meeting with the FDA. A pediatric zelicapavir trial, dubbed LOTUS, began dosing in the third quarter, with topline data expected in 2026. The company's immunology candidate EDP-978 also progressed, with Phase 1 topline data on track for the fourth quarter of 2025. Separately, AbbVie received European Commission approval of MAVIRET for acute HCV infection in June, potentially broadening the royalty base.
Litigation developments added a new variable. The Federal Circuit affirmed the invalidity of Enanta's patent claims against Pfizer in June, and Enanta filed a rehearing petition the following month, with a UPC hearing scheduled for September. The company also shifted its investment allocation, placing $22.0 million into long-term marketable securities as of June 30, up from zero at the start of the fiscal year.