2017 Q3 Form 10-K Financial Statement

#000156459017024794 Filed on December 11, 2017

View on sec.gov

Income Statement

Concept 2017 Q3 2017 Q2 2017 Q1
Revenue $75.93M $7.511M $8.959M
YoY Change 491.29% -46.27% -31.11%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $5.120M $5.230M $5.460M
YoY Change 15.32% 22.2% 23.25%
% of Gross Profit
Research & Development $16.51M $15.41M $13.00M
YoY Change 43.57% 42.88% 42.23%
% of Gross Profit
Depreciation & Amortization $570.0K $550.0K $530.0K
YoY Change 26.67% 25.0% 23.26%
% of Gross Profit
Operating Expenses $21.63M $20.64M $13.00M
YoY Change 35.7% 91.38% 42.23%
Operating Profit -$9.506M
YoY Change 1582.48%
Interest Expense $660.0K $600.0K $8.000K
YoY Change 40.43% 5354.55% -27.27%
% of Operating Profit
Other Income/Expense, Net $660.0K $600.0K $549.0K
YoY Change 40.13% 34.23% 16.31%
Pretax Income $54.96M -$12.53M -$8.957M
YoY Change -2189.73% 1851.71% 9531.18%
Income Tax -$18.45M $4.103M $3.565M
% Of Pretax Income -33.56%
Net Earnings $36.51M -$8.426M -$5.392M
YoY Change -2125.97% 683.09% 227.78%
Net Earnings / Revenue 48.08% -112.18% -60.19%
Basic Earnings Per Share $1.91 -$0.44 -$0.28
Diluted Earnings Per Share $1.86 -$0.44 -$0.28
COMMON SHARES
Basic Shares Outstanding 19.08M 19.05M
Diluted Shares Outstanding 19.05M

Balance Sheet

Concept 2017 Q3 2017 Q2 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $223.7M $192.0M $175.6M
YoY Change 6.46% -12.13% -20.33%
Cash & Equivalents $65.68M $22.26M $19.21M
Short-Term Investments $158.0M $169.8M $156.4M
Other Short-Term Assets $3.500M $6.600M $6.100M
YoY Change -61.96% -29.03% -34.41%
Inventory
Prepaid Expenses
Receivables $10.61M $7.500M $8.959M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $237.8M $206.1M $190.6M
YoY Change 2.44% -14.76% -21.46%
LONG-TERM ASSETS
Property, Plant & Equipment $8.049M $8.100M $8.526M
YoY Change 0.56% 8.01% 10.86%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $70.00M $43.30M $65.30M
YoY Change 118.07% 65.27% 159.13%
Other Assets $10.70M $18.30M $14.50M
YoY Change 18.89% 181.54% 141.67%
Total Long-Term Assets $88.82M $69.70M $88.37M
YoY Change 80.81% 73.62% 126.99%
TOTAL ASSETS
Total Short-Term Assets $237.8M $206.1M $190.6M
Total Long-Term Assets $88.82M $69.70M $88.37M
Total Assets $326.6M $275.8M $279.0M
YoY Change 16.13% -2.18% -0.94%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.714M $5.500M $4.056M
YoY Change 9.98% 169.08% 57.7%
Accrued Expenses $7.970M $5.600M $5.098M
YoY Change 76.64% 22.19% 93.69%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $100.0K $100.0K $100.0K
YoY Change 0.0% 0.0% 0.0%
Total Short-Term Liabilities $20.98M $11.10M $9.154M
YoY Change 165.97% 16.0% -23.64%
LONG-TERM LIABILITIES
Long-Term Debt $1.100M $600.0K $600.0K
YoY Change 83.33% 0.0% -14.29%
Other Long-Term Liabilities $2.410M $3.300M $2.355M
YoY Change 18.02% 68.11% 29.9%
Total Long-Term Liabilities $2.410M $3.900M $2.355M
YoY Change 18.02% 98.68% 29.9%
TOTAL LIABILITIES
Total Short-Term Liabilities $20.98M $11.10M $9.154M
Total Long-Term Liabilities $2.410M $3.900M $2.355M
Total Liabilities $24.96M $15.00M $12.95M
YoY Change 120.1% 16.04% -14.71%
SHAREHOLDERS EQUITY
Retained Earnings $45.36M $17.27M
YoY Change 64.06% -43.41%
Common Stock $256.4M $248.8M
YoY Change 5.85% 5.58%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $301.7M $260.9M $266.0M
YoY Change
Total Liabilities & Shareholders Equity $326.6M $275.8M $279.0M
YoY Change 16.13% -2.18% -0.94%

Cashflow Statement

Concept 2017 Q3 2017 Q2 2017 Q1
OPERATING ACTIVITIES
Net Income $36.51M -$8.426M -$5.392M
YoY Change -2125.97% 683.09% 227.78%
Depreciation, Depletion And Amortization $570.0K $550.0K $530.0K
YoY Change 26.67% 25.0% 23.26%
Cash From Operating Activities $57.30M -$4.790M -$3.010M
YoY Change -2790.14% 127.01% -129.92%
INVESTING ACTIVITIES
Capital Expenditures -$240.0K -$740.0K -$580.0K
YoY Change -42.86% 21.31% -61.59%
Acquisitions
YoY Change
Other Investing Activities -$14.67M $8.400M $2.380M
YoY Change 155.57% -127.26% 124.53%
Cash From Investing Activities -$14.90M $7.660M $1.800M
YoY Change 142.67% -124.37% -491.3%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.010M 190.0K -210.0K
YoY Change 1342.86% -90.31% -139.62%
NET CHANGE
Cash From Operating Activities 57.30M -4.790M -3.010M
Cash From Investing Activities -14.90M 7.660M 1.800M
Cash From Financing Activities 1.010M 190.0K -210.0K
Net Change In Cash 43.41M 3.060M -1.420M
YoY Change -629.39% -109.69% -114.02%
FREE CASH FLOW
Cash From Operating Activities $57.30M -$4.790M -$3.010M
Capital Expenditures -$240.0K -$740.0K -$580.0K
Free Cash Flow $57.54M -$4.050M -$2.430M
YoY Change -3464.91% 170.0% -121.0%

Facts In Submission

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CY2015 us-gaap Increase Decrease In Accounts Receivable
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CY2016 us-gaap Increase Decrease In Unbilled Receivables
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CY2017 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2016 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2017 us-gaap Increase Decrease In Accounts Payable
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633000
CY2016 us-gaap Increase Decrease In Accounts Payable
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1451000
CY2017 us-gaap Increase Decrease In Accrued Liabilities
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3443000
CY2016 us-gaap Increase Decrease In Accrued Liabilities
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1858000
CY2017 us-gaap Increase Decrease In Accrued Income Taxes Payable
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9511000
CY2016 us-gaap Increase Decrease In Accrued Income Taxes Payable
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548000
CY2017 us-gaap Increase Decrease In Other Noncurrent Liabilities
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478000
CY2016 us-gaap Increase Decrease In Other Noncurrent Liabilities
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397000
CY2017 us-gaap Payments To Acquire Marketable Securities
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251371000
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CY2017 us-gaap Income Taxes Paid
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1588000
CY2017 us-gaap Capital Expenditures Incurred But Not Yet Paid
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318000
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2336000
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1814000
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73000
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1017000
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2705000
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2540000
CY2017 us-gaap Cash And Cash Equivalents Period Increase Decrease
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49098000
CY2016 us-gaap Cash And Cash Equivalents Period Increase Decrease
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-5149000
CY2015 us-gaap Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
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30699000
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CapitalExpendituresIncurredButNotYetPaid
1562000
CY2015 enta Fixed Assets Financed By Landlord
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239000
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CY2017 us-gaap Nature Of Operations
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<div> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">1. Nature of the Business </p> <p style="margin-top:6pt;margin-bottom:0pt;text-indent:0%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Enanta Pharmaceuticals, Inc. (the &#8220;Company&#8221;), incorporated in Delaware in 1995, is <font style="Background-color:#FFFFFF;">a biotechnology company that uses its robust, chemistry-driven approach and drug discovery capabilities to create small molecule drugs primarily for the treatment of viral infections and liver diseases. The Company discovered glecaprevir, the second of two protease inhibitors discovered and developed through the Company&#8217;s collaboration with&#160;AbbVie and marketed as part of AbbVie&#8217;s new direct-acting antiviral (DAA) regimen under the tradenames MAVYRET&#8482; (U.S.) or MAVIRET&#8482; (ex-U.S.) (glecaprevir/pibrentasvir) for the treatment of chronic hepatitis C virus, or HCV. The other protease inhibitor under the Company&#8217;s HCV collaboration is part of AbbVie&#8217;s initial DAA regimens for the treatment of chronic HCV marketed under the tradenames VIEKIRA PAK<sup style="font-size:85%; vertical-align:top">&#174; </sup>(paritaprevir/ritonavir/ombitasvir/dasabuvir) (U.S.) or VIEKIRAX<sup style="font-size:85%; vertical-align:top">&#174;</sup> (paritaprevir/ritonavir/ombitasvir) (ex-U.S.). </font><font style="color:#000000;">The royalties from the AbbVie collaboration and the Company&#8217;s existing financial resources provides funding to support the Company&#8217;s wholly owned research and development efforts</font><font style="Background-color:#FFFFFF;">, which are currently focused on the following disease targets: </font>hepatitis B virus (&#8220;HBV&#8221;); non-alcoholic steatohepatitis (&#8220;NASH&#8221;); primary biliary cholangitis (&#8220;PBC&#8221;); and respiratory syncytial virus (&#8220;RSV&#8221;).</p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, the uncertainties of research and development, competition from technological innovations of others, dependence on collaborative arrangements, protection of proprietary technology, dependence on key personnel and compliance with government regulations and the need to obtain additional financing. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approvals, prior to commercialization. These efforts require significant amounts of capital and adequate personnel infrastructure and compliance reporting capabilities.</p></div>
CY2017 us-gaap Use Of Estimates
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<div> <p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Use of Estimates </p> <p style="margin-bottom:0pt;margin-top:6pt;text-indent:0%;color:#000000;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to,&#160;<font style="Background-color:#FFFFFF;">management&#8217;s judgments of separate units of accounting and best estimate of selling price of those units of accounting within its revenue arrangements; valuation of warrants, Series&#160;1 nonconvertible preferred stock and stock-based awards; and the accounting for income taxes, including uncertain tax positions and the valuation of net deferred tax assets.&#160;</font>Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from the Company&#8217;s estimates.</p></div>
CY2017 us-gaap Concentration Risk Credit Risk
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<div> <p style="margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Concentration of Credit Risk and of Significant Customers and Suppliers </p> <p style="margin-bottom:0pt;margin-top:6pt;text-indent:0%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, accounts receivable and unbilled receivables. The Company has all cash and investment balances at one accredited financial institution, including cash in amounts that exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has historically generated all of its revenue from its collaborative research and license agreements as well as a U.S. government contract (see Note 7). As of September 30, 2017 and 2016, accounts receivable consisted of amounts due from the Company&#8217;s principal collaborator (see Note 7). </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company is completely dependent on third-party manufacturers for product supply for preclinical and clinical research activities in its non-partnered programs. The Company relies and expects to continue to rely exclusively on several manufacturers to supply it with its requirements for the active pharmaceutical ingredients related to these programs. These research programs would be adversely affected by a significant interruption in the supply of its active pharmaceutical ingredients. </p></div>
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2006-11-27
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2011-09-30
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0.0177
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0.60
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0.70
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0.74
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0.00
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0.00
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613000
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138000
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2283000
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1350000
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28.75
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30.93
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14.95
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18.73
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30.36
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30.35
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1326000
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956000
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2172000
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28.52
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P7Y7M6D
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CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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37821000
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37596000
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24705000
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1503000
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
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7705000
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4827000
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17.52
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19.12
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27.77
CY2017Q3 enta Target To Achieve Percentage
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1.00
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13071000
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9354000
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AllocatedShareBasedCompensationExpense
5838000
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24613000
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