Enanta Shares Jump as Promising RSV Drug Data Overlooks Q4 Revenue Miss
Investors focus on positive clinical trial results for two RSV candidates and improved cost controls, shrugging off lower-than-expected royalty revenue.
Shares of Enanta Pharmaceuticals (NASDAQ: ENTA) surged on Tuesday, as investors prioritized significant progress in the company’s clinical pipeline, particularly its respiratory syncytial virus (RSV) programs, over a miss on fiscal fourth-quarter revenue.
The biotechnology firm's stock climbed more than 7%, closing at $12.82 in afternoon trading. The rally came despite the company posting quarterly revenue of $15.1 million, which fell short of the analyst consensus of $16.3 million. However, the market's bullish reaction was fueled by a narrower-than-expected loss and, more importantly, promising clinical data that strengthens the company's future commercial prospects.
Enanta reported a net loss of $18.7 million, or $0.87 per share, for the quarter ended September 30, 2025. This result was a significant improvement from the consensus estimate of a $1.04 per share loss and narrower than the $28.8 million net loss recorded in the same period last year. The improved bottom line was driven by disciplined cost management, with research and development (R&D) expenses decreasing to $23.8 million from $30.8 million a year prior, and general and administrative costs falling to $9.7 million.
The main driver of investor optimism was the positive topline data from its two RSV drug candidates. Enanta announced that its lead candidate, zelicapavir, demonstrated a clinically meaningful benefit in a Phase 2b study involving high-risk adults with RSV. According to the company, the antiviral treatment showed a notable reduction in the time to symptom resolution, particularly in patients with congestive heart failure, COPD, or those aged 75 and older.
Further bolstering its RSV franchise, Enanta’s second candidate, EDP-323, showed strong potential in a Phase 2a human challenge study. The oral, once-daily L-protein inhibitor completely prevented infection in participants receiving it as post-exposure prophylaxis.
“This past quarter represented a pivotal period for Enanta, marked by significant progress across both our virology and immunology programs,” said Jay R. Luly, Ph.D., President and CEO of Enanta, in a statement. He highlighted the zelicapavir data as the first time an antiviral treatment has shown such a benefit in high-risk adult outpatients with RSV.
Beyond its virology efforts, Enanta is also advancing its immunology pipeline. The company nominated two new clinical candidates: EPS-3903, an oral STAT6 inhibitor for immune-driven diseases like atopic dermatitis, and EDP-978, an oral KIT inhibitor aimed at treating mast-cell-driven diseases such as chronic spontaneous urticaria.
Adding to investor confidence, Enanta's financial position appears robust. The company ended the quarter with $188.9 million in cash and marketable securities. A subsequent public offering in October raised an additional $74.8 million in gross proceeds, which Enanta projects will be sufficient to fund its operations into fiscal 2029. This extended cash runway removes near-term financing risks and allows the company to focus on advancing its promising drug candidates through the clinic.
While the fourth-quarter revenue, derived from royalties on AbbVie’s hepatitis C treatment MAVYRET, was a reminder of its current commercial ties, the market's forward-looking gaze was firmly fixed on the potential of its proprietary pipeline. With key clinical data in hand and a fortified balance sheet, investors on Tuesday signaled their belief that Enanta's future value lies in the drugs it is developing in-house.