Entasis (ETTX)

FN Rating

8/10
8/10

FN Summary: Lead asset (Durlobactam) to treat CRAB is in P3 clinical trials. Existing treatments for CRAB have a 50% mortality rate. Phase 2 results were good and non-inferiority Phase 3 trial is progressing nicely with full enrollment completed in July. Good insider ownership, but is primarily one company who sits on the BOD. Company also has an oral drug to treat gonorrhea, which is also in Phase 3, but Covid seems to be slowing enrollment.

Table of Contents

This company hits most of the right spots.

Experienced Management

High Institutional Ownership

Good Phase 2

Plenty of Cash (as of Aug 2021)

Good Insider Ownership

Next Catalyst

Results on Durlobactam P3 non-inferiority Trial ~ early 4Q 2021
Countdown Timer 👇
days until Oct 1
P3 readout any day!

Interactive Chart

Catalyst-Chart Overlay

Caveat! Stock movement can be very finicky and, at times, seemingly random. This is FN's best explanation of the price movement.

Sept 26, 2018 - IPO

March 2020 - Covdid-19 affected all US equities negatively)

Cash on Hand

.

Est Monthly Cash Burn

$$$$

56M

4.5M

Notes

nice cushion...

just an estimate

Est Cash End of Aug 2021

45M

Plenty of cash until P3 data catalyst in Q4.

Products & Sales Potential

Indication

Acinetobacter Infections

Gonorrhea Infections

US Market

.

.

Global Market

$1B+

$1B+

For Context: Entasis Market Cap ~ $178M as of Sept 24, 2021

Management

Yes, we know. This is the boring part of the page. But, it is also the most important. Read this: Importance of Management
  • Manos Perros, Ph.D., has served as our chief executive officer, co-founder and director since May 2015. Prior to this, Dr. Perros worked for AstraZeneca AB as vice president and head of its infection research and early development organization from 2010 to 2015 and as site head for its research center in Waltham, Massachusetts from 2012 to 2015. Prior to joining AstraZeneca, Dr. Perros served as director of the Novartis Institute for Tropical Diseases in Singapore, and prior to that, as vice-president and chief scientific officer, antivirals, at Pfizer, Inc. 
  • David Altarac MD, MPA joined Entasis as our Chief Medical Officer in 2020.  Prior to this, David was a Senior Vice President and Head of Global Regulatory Affairs, Global Drug Safety and R&D Quality and Compliance at Shire Inc. Prior to joining Shire, David spent two years as VP, Regulatory Affairs at NeoStem, a biopharmaceutical company developing novel, cell-based, individualized therapeutics. Before joining NeoStem, David spent over 13 years at Merck & Company where he served on multiple senior leadership teams. David holds an M.D. degree from New York Medical College, a Master of Public Administration (M.P.A.) degree from New York University, and a B.A. in Chemistry from the State University of New York at Binghamton, New York. David completed his Internal Medicine residency and Infectious Diseases fellowship at Beth Israel Medical Center in New York. David has been the principle and co-investigator on TB, HIV and STD grants funded by the CDC, NIH, and New York State Department of Health. David has held multiple academic, hospital and post graduate teaching appointments during his career and has authored/coauthored numerous scientific publications.

Company PDFs

Read all of this 👇

Corp Presentation - Aug 2021

Phase 3 Clinical Trial

Understanding the Phase 2 trial is crucial to anticipate the success of the current Phase 3 trial. Below is a slide taken out of the corporate presentation.

The above slide (middle section) is the only mention of Phase 2 results. The company has not highlighted anything significant as far as efficacy. Therefore, we needed to dig to discern the Phase 2 results.

Here is the Results Abstract of the Phase 2 Trial. (the underlined areas are the most important)

The Phase 2 trial was a non-inferiority trial. This is because Acinetobacter is becoming resisting to existing antibiotics. A new drug is needed to treat this type of infection. This is the primary purpose of Durlobactam.

Phase 3 was designed based on the results of Phase 2 and Phase 1 trials.

Despite being equivalent in efficacy to existing treatment, Durlobactam (SUL-DUR) could have less SAE as well as other benefits. See inside red box below.

Analyst Price Targets

Ownership

Insider Ownership % (not precise)

Note: The majority of the insider ownership is by Innoviva Inc., who has a seat on the BOD.

Insider Transactions

Institutional Holdings

This is a low % of institutional ownership.

Notable Institutional Holdings

Short Interest

Daily Short Volume Chart

Shares Available to Short

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You must stay updated on every development.

FAQ

Q. What does CRAB stand for
A. Carbapenem- resistant Acinetobacter baumannii, or CRAB, are highly antibiotic-resistant bacteria for which few treatment options exist. Carbapenems are a group of antibiotics often reserved for treating multidrug-resistant A. baumannii infections. Some CRAB are resistant to all available antibiotics. Source


Q. What commercial rights does Entasis have?
A. Entasis has partnered with Chinese-based Zai Lab and theyhave the rights to China and other Asia-Pacific territories. However, Entasis maintains 100% of the commercial rights outside of Asia-Pacific, including Europe and North America.

 

ETTX Videos

Entasis Therapeutics to Host Expert Perspectives Webinar on Acinetobacter Infections - Aug 24, 2021

Additional Videos

Risks

Phase 3 was slowed as hospitals focused exclusively on Covid patients. It is possible that a data variation was created which will adversely affect the results.

Phase 3 pulls in a much larger group of patients. Anytime this occurs, new variables can be introduced that Phase 2 did not uncover. These variables can cause adverse results resulting in the company not hitting their endpoints.

The clinical trial is being run primarily in China as well as other countries. Entasis has partnered with Zai Labs of China. This helps reduce cost of drug development, but Entasis has given up commercial rights in some of the Asia-Pacific territories. In addition, it is not known if the Phase 3 data being collected in other countries will pass FDA or EU scrutiny.

Entasis has not broken out the potential market in the US and EU. These are 2 of the most valuable markets in the world we wish the company had provided more insight into potential sales in these territories.

Lastly, we are bothered (perhaps irrationally) by the lack of mention regarding Phase 2 results. Phase 2 sets the stage for a Phase 3 trial and we don't know if Phase 3 is similar to Phase 2 design or if they needed to make significant changes before initiating the Phase 3 trial. More changes introduces more potential variables in the outcome of the Phase 3 trial.

Competition

There is minimal, to no, competition for CRAB.

Email us at info@frugalnorwegian.com if you have more.  We want to list all risk factors for the drug & trial.

Have questions about this info? Did we miss a fact? We want to hear from you.

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