Enanta Pharmaceuticals Inc. (ENTA) Soars 22.41% on Tariff Exemption, Lower Rates

Enanta Pharmaceuticals Inc. (ENTA) saw a significant surge in its stock price, rising 22.41% in pre-market trading on April 8, 2025. This substantial increase can be attributed to several factors that have influenced the company's outlook and investor sentiment.

One of the key factors driving the stock price is the recent announcement that pharmaceuticals are exempt from new tariffs, at least for now. This exemption provides a significant relief for Enanta, which relies on third-party manufacturers, including those in China, for the supply of active pharmaceutical ingredients and ingredients for use in clinical trials. The exemption from tariffs mitigates the potential financial impact on Enanta's operations and supply chain, thereby boosting investor confidence.

Additionally, the lower interest rates have positively impacted Enanta's Mavyret royalty stream from AbbVie, which runs until 2033. Lower interest rates increase the net present value (NPV) of future royalty payments, making Enanta's financial outlook more attractive to investors. This financial benefit, coupled with the tariff exemption, has likely contributed to the stock's pre-market surge.