Enanta's 15min Chart Bears Bullish Marubozu with Bollinger Bands Expanding Downward

Enanta's 15-minute chart has triggered Bollinger Bands Expanding Downward and a Bearish Marubozu at 08/29/2025 11:30, indicating that the market trend is being driven by sellers who are in control. This bearish momentum is likely to continue, suggesting a negative outlook for the market.

Enanta Pharmaceuticals has initiated a patent lawsuit against Pfizer in the European Union, alleging infringement on a patent related to protease inhibitors. The lawsuit, filed in the European Unified Patent Court (UPC), could impact Pfizer's revenue and earnings forecasts, as well as its stock valuation. This development comes amidst a broader market trend characterized by expanding downward Bollinger Bands and a bearish Marubozu on Enanta's 15-minute chart, indicating a strong seller's market and potential continued negative momentum.

Enanta Pharmaceuticals, known for its co-development of hepatitis C virus treatment glecaprevir/pibrentasvir with AbbVie, filed the lawsuit against Pfizer in the European Union's Unified Patent Court (UPC). The lawsuit claims that Pfizer infringed on a patent describing protease inhibitors invented by Enanta's scientists. The patent in question, European Patent No. EP 4 051 265, is the European counterpart of US patent number 11,358,953, which is the center of the ongoing US lawsuit. Enanta is seeking a determination of liability for use and infringement of the patent in the manufacture, use, and sale of Paxlovid [1].

Pfizer, which has reported strong Q2 2025 results, has not yet responded to the latest lawsuit. However, the company has previously stated that it is confident in its intellectual property (IP) surrounding Paxlovid and will respond in due course in court. The lawsuit adds another layer of complexity to Pfizer's outlook, potentially impacting its revenue and earnings forecasts. Over the past year, Pfizer's total return, including both share price and dividends, was a 6.44% decline, compared to a US pharmaceutical industry return of -13.6% [2].

Investors should note that Pfizer's stock is currently trading at a 13.37% discount to its consensus price target of $28.77. The market might have already priced in some of the anticipated future risks, while the legal battle and operational challenges may continue to influence investor sentiment and the company's valuation dynamics. The legal challenge follows a Phase III trial failure for a sickle cell disease candidate, which Pfizer purchased as part of a $5.4bn takeover of Global Blood Therapeutics in 2022 [3].

The recent lawsuit and the positive Phase 3 results for PADCEV plus KEYTRUDA in muscle-invasive bladder cancer patients not eligible for cisplatin-based therapy mark a pivotal period for Pfizer. The successful trial results could update Pfizer's outlook, reinforcing confidence in its oncology pipeline and supporting new product launches that could help offset potential revenue loss from patent expirations. However, investors should remain alert as new patent litigation could escalate and impact the company's future prospects [4].

References:
[1] https://www.ainvest.com/news/enanta-initiates-patent-lawsuit-pfizer-paxlovid-eu-2508/
[2] https://finance.yahoo.com/news/enanta-files-patent-lawsuit-against-174150813.html
[3] https://www.investors.com/research/options/pfizer-pfe-stock-low-volatility-breakout-long-strangle-trade-options/
[4] https://simplywall.st/stocks/us/pharmaceuticals-biotech/nyse-pfe/pfizer/news/did-enanta-lawsuit-and-padcev-trial-success-just-shift-pfize