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Achillion (ACHN) Reports Narrower-Than-Expected Q4 Loss
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Shares of Achillion Pharmaceuticals, Inc. lost almost 9% on Feb 24, in spite of the company reporting narrower-than-expected fourth-quarter loss a day before. In fact, the Achillion stock underperformed the Zacks classified Medical-Biomed/Genetics industry year to date. The company’s shares lost 6.5%, whereas the industry registered an increase of 6.1%.
The biotech company reported a loss of 3 cents per share in the fourth quarter, significantly narrower than the Zacks Consensus Estimate loss of 18 cents. In the year-ago quarter, the company had reported a gain of 12 cents per share.
The company generated revenues of $15.0 million in the reported quarter as against $31.6 million a year ago. The fourth-quarter revenues mainly comprised a milestone payment received from partner, Janssen, a subsidiary of Johnson & Johnson (JNJ - Free Report) . The payment was made after the advancement of JNJ-4178 – a triple combination of odalasvir, simeprevir, and AL-33 – into phase IIb studies.
Research and development expenses increased 56.3% from the year-ago period to $15 million due to increased manufacturing, clinical trial and consulting costs related to pipeline candidate ACH-4471. The increase in expenses was partially offset by decreased costs related to the HCV compounds that were licensed to Janssen in 2015.
General and administrative expenses were down 3.6% to $5.3 million owing to lower business consulting and corporate legal fees related to the Janssen agreement, partially offset by higher personnel and non-cash stock compensation related to an increase in personnel.
Pipeline Update
During the quarter, Achillion initiated patient screening in a phase II study ACH-4471 for the treatment of patients with paroxysmal nocturnal hemoglobinuria (PNH). The company is likely to provide an update on this study during the first half of 2017. During the second half of 2017, Achillion expects to initiate a phase II trial with ACH-4471 for patients with C3G, which includes dense deposit disease (DDD) and C3 glomerulonephritis (C3GN).
2017 Guidance
The company expects net loss per share for 2017 in the range of 70 cents to 75 cents per share.
Research and development (R&D) expenses are expected to be in the range of $75–80 million. Net cash used in operating activities in 2017 is anticipated to be approximately $70–75 million based on current operating plans, anticipated timelines and the estimated cost of clinical trials and product development programs.
Achillion Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Achillion currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Celgene Corporation and Sunesis Pharmaceuticals, Inc. . Each of these stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Celgene’s earnings estimates increased from $6.55 to $6.60 for 2017 and from $8.13 to $8.16 for 2018 over the last 30 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 5.08%.
Sunesis’ loss estimates narrowed from $2.57 to $2.44 for 2016 and from $2.16 to $1.97 for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 0.54%.
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Achillion (ACHN) Reports Narrower-Than-Expected Q4 Loss
Shares of Achillion Pharmaceuticals, Inc. lost almost 9% on Feb 24, in spite of the company reporting narrower-than-expected fourth-quarter loss a day before. In fact, the Achillion stock underperformed the Zacks classified Medical-Biomed/Genetics industry year to date. The company’s shares lost 6.5%, whereas the industry registered an increase of 6.1%.
The biotech company reported a loss of 3 cents per share in the fourth quarter, significantly narrower than the Zacks Consensus Estimate loss of 18 cents. In the year-ago quarter, the company had reported a gain of 12 cents per share.
The company generated revenues of $15.0 million in the reported quarter as against $31.6 million a year ago. The fourth-quarter revenues mainly comprised a milestone payment received from partner, Janssen, a subsidiary of Johnson & Johnson (JNJ - Free Report) . The payment was made after the advancement of JNJ-4178 – a triple combination of odalasvir, simeprevir, and AL-33 – into phase IIb studies.
Research and development expenses increased 56.3% from the year-ago period to $15 million due to increased manufacturing, clinical trial and consulting costs related to pipeline candidate ACH-4471. The increase in expenses was partially offset by decreased costs related to the HCV compounds that were licensed to Janssen in 2015.
General and administrative expenses were down 3.6% to $5.3 million owing to lower business consulting and corporate legal fees related to the Janssen agreement, partially offset by higher personnel and non-cash stock compensation related to an increase in personnel.
Pipeline Update
During the quarter, Achillion initiated patient screening in a phase II study ACH-4471 for the treatment of patients with paroxysmal nocturnal hemoglobinuria (PNH). The company is likely to provide an update on this study during the first half of 2017. During the second half of 2017, Achillion expects to initiate a phase II trial with ACH-4471 for patients with C3G, which includes dense deposit disease (DDD) and C3 glomerulonephritis (C3GN).
2017 Guidance
The company expects net loss per share for 2017 in the range of 70 cents to 75 cents per share.
Research and development (R&D) expenses are expected to be in the range of $75–80 million. Net cash used in operating activities in 2017 is anticipated to be approximately $70–75 million based on current operating plans, anticipated timelines and the estimated cost of clinical trials and product development programs.
Achillion Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Achillion Pharmaceuticals, Inc. Price, Consensus and EPS Surprise | Achillion Pharmaceuticals, Inc. Quote
Zacks Rank & Key Picks
Achillion currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Celgene Corporation and Sunesis Pharmaceuticals, Inc. . Each of these stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Celgene’s earnings estimates increased from $6.55 to $6.60 for 2017 and from $8.13 to $8.16 for 2018 over the last 30 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 5.08%.
Sunesis’ loss estimates narrowed from $2.57 to $2.44 for 2016 and from $2.16 to $1.97 for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 0.54%.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>