Brief Overview on Company’s Performance: Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN)

Shares of Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) closed with gain/decline of +3.39% to $3.0500. Recent traded volume was 1,503,942 shares versus to it an average volume of 1,496,762 shares. The company holds 138.72M shares outstanding and market cap of 423.111M. The stock’s day range was recorded between a low of $2.8900 and a high $3.1000. The one year high of the company is $3.9800 and the one year low is $1.2900.

Achillion Pharmaceuticals, Inc. (ACHN) recently stated financial results for the three and twelve months ended December 31, 2018 and provided a corporate update.

Key 2019 Planned Milestones

ACH-4471, Complement Factor D Inhibitor for PNH and C3G

  • The Company expects to report updated interim results for its Phase 2 open-label combination trial of ACH-4471 for PNH, with C5 inhibitor (eculizumab), in the second quarter of 2019 and is targeting an FDA meeting in the fourth quarter of 2019.
    • The Company plans to present data from its Phase 2 clinical trials of ACH-4471 for C3G and immune complex membranoproliferative glomerulonephritis (IC-MPGN) to the FDA in the fourth quarter of 2019.   
       

ACH-5228, Next Generation Complement Factor D Inhibitor

  • The Company recently initiated a Phase 1 MAD study of ACH-5228 and expects to complete the study and submit a US IND Application in the fourth quarter of 2019.

Fourth Quarter 2018 Financial Results

For the three months ended December 31, 2018, the Company stated a net loss of $16.6M, contrast to a net loss of $23.2M in the three months ended December 31, 2017.

Research and development expenses were $12.2M for the three months ended December 31, 2018, contrast to $15.7M for the same period of 2017. The decrease was primarily Because of reduced personnel costs Because of fewer employees combined with reduced discovery research costs related to ACH-5228. These amounts were partially offset by raised manufacturing expenses for ACH-5228.

For the three months ended December 31, 2018, general and administrative expenses totaled $6.0M, contrast to $8.7M for the same period of 2017. The decrease was primarily the result of the Company’s payment of the underwriting fees in connection with the public resale by the Johnson and Johnson Development Corporation (JJDC) in November 2017 of all the shares of ordinary stock it purchased from the Company in 2015. 

Year-end 2018 Financial Results

For the year ended December 31, 2018, the Company’s net loss was $70.3M, or $0.51 per share, contrast to a net loss of $85.2M, or $0.62 per share, for the year ended December 31, 2017.

For the year ended December 31, 2018, research and development expenses totaled $50.1M, contrast to $63.6M for the year ended December 31, 2017. The decrease was primarily Because of manufacturing and formulation costs related to ACH-5228, discovery research costs, and personnel costs and non-cash stock compensation Because of fewer employees. These amounts were partially offset by raised clinical trial costs related to ACH-4471 and raised pre-clinical costs related to ACH-5548.

General and administrative expenses were $23.9M for the year ended December 31, 2018, contrast to $26.0M for the year ended December 31, 2017. The decrease was primarily Because of reduced corporate legal fees and consulting fees combined with the Company’s payment of $2.9M in underwriting fees in connection with the sale by JJDC in November 2017 of all of the shares of the Company’s ordinary stock it purchased pursuant to the JJDC Stock Purchase Contract. These amounts were partially offset by an raise in personnel and non-cash stock-based compensation charges related to the transition of the Company’s former chief executive officer and former chief financial officer.

Cash, cash equivalents, and marketable securities at December 31, 2018 were $271.0M. 

Financial Guidance 

The company expects net cash usage for 2019 will be about $80M based on current operating plans, anticipated timelines and the estimated costs of clinical trials and product development programs. 

Beta factor, which measures the riskiness of the security, was registered at 2.42. EPS growth for this year is 18.30% and EPS growth for next year is expected to reach at -23.80%. EPS growth in past five years was 4.10% while EPS growth in next five years is projected to arrive at 17.58%.

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