Enanta Shares Surge as RSV Drug Hopes Outweigh Mixed Q4 Results
The biotech firm's stock jumped over 6% after it highlighted positive clinical data and a strong cash position, shifting focus from a slight revenue miss.
Enanta Pharmaceuticals (NASDAQ: ENTA) saw its shares climb more than 6% on Monday after the company’s promising outlook for its respiratory syncytial virus (RSV) treatment overshadowed a mixed earnings report for its fiscal fourth quarter.
Investors appeared to focus on the significant potential of Enanta’s clinical pipeline and its robust financial footing rather than a narrow miss on revenue. The stock was trading at $12.82 in morning activity, a gain of 6.3%, as the market prioritized future growth prospects over legacy product royalties.
For the quarter ending September 30, 2025, Enanta reported revenue of $15.1 million, slightly below analyst expectations. The revenue was derived from royalties on AbbVie's hepatitis C treatment, MAVYRET. However, the company posted a net loss of $0.87 per share, which was narrower than the consensus estimate and a significant improvement from the $1.36 per share loss reported in the same period last year.
The biotechnology firm's management highlighted a reduction in operating expenses as a key factor in the improved bottom-line performance. Research and development costs fell to $23.8 million from $30.8 million a year prior, reflecting the timing of its clinical trial activities.
More importantly for investors, Enanta emphasized recent positive developments for its lead drug candidate, zelicapavir, an oral antiviral being developed for the treatment of RSV. The company has announced positive data from its Phase 2b study, positioning it to compete in a market with high unmet need, particularly among vulnerable populations like older adults and infants.
The potential of zelicapavir recently drew a favorable notice from Wall Street. Analysts at JPMorgan initiated coverage on Enanta with an "Overweight" rating and a $17 price target, projecting that the RSV drug could achieve peak worldwide sales of over $1.5 billion. This external validation has bolstered investor confidence in the company's long-term strategy.
Further strengthening its position, Enanta confirmed it holds $188.9 million in cash and marketable securities. The company stated that this balance, supplemented by a recent $74.8 million public offering and future royalty revenues, provides a sufficient cash runway to fund operations into the 2029 fiscal year. This financial stability is critical for a development-stage biotech, as it mitigates near-term financing risks while it advances its costly clinical programs.
"Our focus remains on advancing our robust pipeline, led by our potential best-in-class oral therapy for RSV, zelicapavir," said Jay R. Luly, Ph.D., President and CEO of Enanta, in a statement. "With a strong cash position, we are well-equipped to execute on our clinical and preclinical objectives throughout the upcoming year."
With declining royalties from its hepatitis C partnership, Enanta's future is increasingly tied to the success of its proprietary pipeline. The market's positive reaction to Monday's report signals that investors are willing to look past the current financials and bet on the company’s ability to deliver on the promise of its next generation of treatments.