Enanta Pharmaceuticals (ENTA) has garnered renewed confidence from analysts, receiving Buy ratings from both JMP Securities and Robert W. Baird. This positive outlook is fueled by promising developments in the company's respiratory syncytial virus (RSV) drug candidates and a shifting competitive landscape.
Reduced Competition in RSV Market
The discontinuation of Pfizer's sisunatovir, a competing RSV drug, for business reasons, has significantly reduced the competitive pressure on Enanta. According to JMP Securities analyst Roy Buchanan, this development could prove advantageous for Enanta, particularly if their drug candidates successfully navigate clinical trials and reach the market.
Promising Trial Results for Zelicapavir and EDP-323
Buchanan also highlighted the anticipated results from the pediatric trial of zelicapavir later this quarter as a potential catalyst for the company. Furthermore, there is optimism surrounding EDP-323, Enanta’s oral small-molecule RSV-polymerase inhibitor. Recent challenge trials have demonstrated a robust impact on viral loads and symptoms, reinforcing confidence in the drug's potential.
EDP-323 Shows Strong Viral Load Impact
Despite a previous setback with zelicapavir in a field trial, the encouraging results from the EDP-323 challenge trial are noteworthy. These findings suggest that EDP-323 could offer a significant therapeutic benefit in managing RSV infections. Pfizer's continued pursuit of RSV treatments underscores the ongoing demand for effective therapeutics in this area, potentially benefiting Enanta if their candidates prove successful.
Analyst Confidence
Roy Buchanan reiterated a Buy rating on Enanta Pharmaceuticals with a price target of $22.00. Similarly, Robert W. Baird maintained a Buy rating with a $26.00 price target in a report released on September 26.
