Stock Alert for Achillion Pharmaceuticals Inc. ($ACHN)
  • Stock Alert for Arena Pharmaceuticals Inc. (ARNA)
  • Stock Alert for Avanir Pharmaceuticals (AVNR)
  • " />

    Stock Alert for Achillion Pharmaceuticals Inc. (ACHN)

    Achillion Pharmaceuticals Inc. (ACHN) is a biopharmaceutical company focused on the discovery, development and commercialization of innovative treatments for infectious diseases. Within the anti-infective market, it is currently concentrating on the development of antivirals for the treatment of chronic hepatitis C and the development of antibacterials for the treatment of resistant bacterial infections. As of December 31, 2009, ACHN focused on developing three Hepatitis C virus (HCV) drug candidates: ACH-1625, a protease inhibitor for the treatment of chronic hepatitis C, currently being tested in an on-going phase IIa clinical trial; ACH-2684, a pangenotypic protease inhibitor, for which it has completed preclinical testing; and ACH-2928, an NS5A inhibitor, for which it has completed preclinical testing. It has also developed ACH-1095, a NS4A antagonist for the treatment of chronic hepatitis C, to which Gilead Sciences Inc. retains certain future development rights.  In addition, ACHN has established a pipeline of certain other product candidates, for which it is seeking additional collaborative partners. These product candidates include ACH-702 for the treatment of serious bacterial infections and elvucitabine for the treatment of human immunodeficiency virus (HIV) infection.

    Share Statistics (22-June-11) FY 












    Symbol ACHN Revenue, $Mn -0.29 2.44 941.4% 0.07 0.07 0.0%
    Current price $7.26 Gross marg. 100.0% 100.0% 0.0% 100.0% 100.0% 0.0%
    52wk Range: $2.00-$7.65 Oper. margin -1038.5% -15616.9%
    Avg Vol (3m): 956,823 Net margin 8941.4% -1044.3% -111.7% -8057.1% -14471.4% 79.6%
    Market Cap. 424.07M
    Shares Outstanding 58.41M EPS, $ -0.97 -0.57 -41.2% -0.16 -0.17 6.3%

    Source:, SEC Filings.

    Investment Highlights

    Shares of ACHN spiked almost 21% in yesterday’s trading after the biopharmaceutical company announced the pricing of the public offering of its common stock.  The New Haven, Connecticut-based company said it plans to sell 9.6 million shares at $5.90 a share, down from the previous session’s closing price of $6.01. It said the underwriters would have a 30-day option to buy another 1.4 million shares to cover any over allotments.

    The Company expects to raise net proceeds of $52.9 million, which it said will be used to fund clinical testing and drug development.

    Subject to customary closing conditions, the transaction is expected to close on June 27. BofA Merrill Lynch and Leerink Swann LLC are acting as joint book-running managers for the offering.

    ACHN earlier on Monday said it would sell 9 million shares, which should net the company around $52.1 million.

    Also yesterday, the Company announced that it has initiated patient dosing in segment 2 of its Phase II clinical trial of ACH-1625 for the treatment of hepatitis C virus (HCV) for genotype 1 treatment naïve HCV-infected patients. ACH-1625, discovered and advanced by ACH, is a potent small molecule inhibitor of HCV protease, an enzyme necessary for viral replication.

    The Company said the trial will take place in the United States and Europe and is designed to enroll approximately 60 HCV-infected patients. The 12-week complete early virologic response trial results are anticipated to be announced in the fourth quarter of 2011.

    Elizabeth A. Olek D.O., vice president and chief medical officer of ACHN, commented in the release: “Initiating the second segment of this Phase II clinical trial allows us to build upon the robust RVR results we observed with ACH-1625, and to further augment the safety and efficacy database by taking the opportunity to study multiple doses of ACH-1625.  We expect that the results will provide important insight to benchmark the activity of our once-daily protease inhibitor and we look forward to reporting cEVR results by the end of this year.”

    ACHN gained $1.25 to close Wednesday’s trading at $7.26 per share. More than 7 million shares have traded hands during the session, versus the 10-day average volume of 746.89K.  The stock has been moving within a range of $2 – $7.65 over the past 52-weeks. The stock is currently trading above its 50-day moving average of $6.08 and above its 200-day moving average $5.43. Market capitalization currently stands at 424.07 million and it has 58.41 million outstanding shares.

    Visit ACHN at

    Financial Summary

    For the first quarter of 2011, the Company reported a net loss of $10.1 million, or $(0.17) per share, compared with a net loss of $5.6 million, or $(0.16) per share for the first quarter of 2010.

    Revenue for the three months ended March 31, 2011, was $65,000, compared with revenue of $74,000 for the three months ended March 31, 2010. Revenue in both periods consisted primarily of reimbursed costs under the Company’s collaboration with Gilead Sciences Inc.

    Research and development expenses were $8.0 million in the first quarter of 2011, compared with $4.0 million for the same period of 2010. Research and development expenses were primarily related to costs incurred from the ongoing phase II clinical trial with ACH-1625 and preparations to advance the Company’s two additional HCV compounds, ACH-2684 and ACH-2928, into clinical trials during the first half of 2011. As the Company continues to advance its three HCV compounds in the clinic, it expects that research and development expenses will remain consistent with first-quarter levels during the remaining quarters of 2011.

    For the three months ended March 31, 2010, general and administrative expenses totaled $2.2 million, increased slightly from $1.7 million for the same period in 2010.

    As of March 31, 2011, cash, cash equivalents and marketable securities totaled $46.4 million.

    Financial Strength (22-June-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 1.84 2.08 0.71
    Current Ratio (MRQ) 7.75 2.35 2.62 1.03
    LT Debt to Equity (MRQ) 0.00 26.49 23.33 136.63
    Total Debt to Equity (MRQ) 0.00 30.64 29.50 182.41
    Interest Coverage (TTM) -63.37 3.17 1.61 18.12

    Source:, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among 11 polled investment analysts. Against the Achillion Pharmaceuticals Inc company.

    Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
    Latest 7 2 2 0 0 0
    4 weeks ago 5 2 2 0 0 0
    2 months ago 5 1 2 0 0 0
    3 months ago 6 1 2 0 0 0
    Last year 7 0 2 0 0 0

    The seven analysts offering 12-month price targets for ACHN have a median target of 10.00, with a high estimate of 14.00 and a low estimate of 5.00. The median estimate represents a 66.39% increase from the last price of 6.01.


    Consensus Estimates Analysis

    # of Estimates Mean High Low 1 Year Ago
    SALES (in millions)
    Quarter Ending Jun-11 8 0.17 0.30 0.05 0.07
    Quarter Ending Sep-11 8 0.31 1.35 0.06 0.07
    Year Ending Dec-11 10 2.20 15.00 0.06 10.41
    Year Ending Dec-12 7 6.89 20.00 0.60 6.29
    EARNINGS (per share)
    Quarter Ending Jun-11 9 -0.17 -0.16 -0.19 -0.20
    Quarter Ending Sep-11 9 -0.18 -0.16 -0.20 -0.21
    Year Ending Dec-11 10 -0.64 -0.22 -0.76 -0.52
    Year Ending Dec-12 9 -0.69 -0.54 -0.94 -0.63

    Technical Analysis


    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    June22-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    GlaxoSmithKline plc GSK 41.31 105.07B 11.20 10.35 2.34 2.25
    Roche Holding AG RHHBY 41.11 35.00B 11.39 10.05 0.65 0.62
    Anadys Pharmaceuticals Inc. ANDS 1.01 57.71M n/a n/a 20.18 10.04
    Merck & Co. Inc. MRK 35.47 109.48B 9.51 9.21 2.32 2.35
    Human Genome Sciences HGSI 25.09 4.76B n/a n/a 28.50 10.15
    Johnson & Johnson JNJ 66.07 181.11B 13.35 12.49 2.78 2.64
    Abbott Laboratories ABT 52.08 80.95B 11.32 10.52 2.10 2.02
    Biotechnology Median 19.23 n/a 10.27 n/a
    Achillion Pharmaceuticals Inc. ACHN 7.26 424.07M n/a n/a n/a 59.90

    Source: Thomson Financial

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at and FINRA at

    Leave a Reply

    Your email address will not be published. Required fields are marked *