Back to top

Analyst Blog

The share price of Achillion Pharmaceuticals, Inc. (ACHN - Snapshot Report) fell 6.7% after the company announced its first quarter results on Mar 7. Since then, share prices have however recovered 3.3%.
 
Achillion reported a first quarter 2014 loss of 17 cents per share, in line with the Zacks Consensus Estimate but wider than the loss of 14 cents recorded in the first quarter of 2013.
 
Achillion did not record any revenues in the first quarter 2014 and so was the case in first quarter 2013.
 
Quarter in Detail
 
In the first quarter of 2014, general and administrative expenses increased 10.4% to $3.4 million due to higher salaries, non-cash stock based compensation and increased insurance costs. Research and development (R&D) expenses increased 47.3% year over year to $12.8 million, reflecting higher investment in pipeline.
 
Achillion primarily focuses on developing therapies for hepatitis C virus (HCV) infection. The company has initiated several studies on its HCV candidates including ACH-3102 (phase II), ACH-3422 (phase I) and ACH-2684 (phase II).
 
The U.S. Food and Drug Administration (FDA) has placed a clinical hold on sovaprevir. The FDA had placed a clinical hold on sovaprevir after observing elevations in liver enzymes in a phase I study. The company expects to receive a response from the FDA on sovaprevir during the second quarter of 2014.
 
We believe that in the near term investor focus will be on Achillion’s HCV pipeline candidates. However, we note that HCV represents a highly crowded market. Moreover, many large cap companies including Bristol-Myers Squibb Company (BMY - Analyst Report), AbbVie Inc. (ABBV - Analyst Report) and Gilead Sciences Inc. (GILD - Analyst Report) are developing drugs for the treatment of HCV.
 
Achillion carries a Zacks Rank #4 (Sell). Investors looking for better-ranked stocks may consider companies like Gilead carrying a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%