Achillion Reports Third Quarter and Nine Month 2012 Financial Results

Achillion Reports Third Quarter and Nine Month 2012 Financial Results

NEW HAVEN, Conn., Nov. 8, 2012 (GLOBE NEWSWIRE) -- Achillion Pharmaceuticals,
Inc. (Nasdaq:ACHN) today reported financial results for the three and nine
months ended September 30, 2012. For the third quarter of 2012, Achillion
reported a net loss of $15.3 million or $0.20 per share, compared with a net
loss of $10.4 million or $0.15 per share for the third quarter of 2011. Cash,
cash equivalents and marketable securities as of September 30, 2012 were $90.6
million.

Recent Corporate and Clinical Development Highlights

During the third quarter of 2012 Achillion:

  *Completed a registered direct financing resulting in gross proceeds of
    approximately $41.8 million;
    
  *Hosted its inaugural R&D/Analyst Day in New York City;
    
  *Reported updated SVR12 rates of 80%, 77% and 85% for the sovaprevir 200
    mg, 400 mg and 800 mg dose groups, respectively, following 12 week
    treatment of sovaprevir in combination with response-guided treatment of
    pegylated interferon and ribavirin for treatment-naïve genotype 1 HCV
    patients;
    
  *Reported proof-of-concept with ACH-3102 with the achievement of a mean
    maximal 3.74 log[10] reduction in HCV RNA in genotype 1a patients; and
    
  *Advanced ACH-3102 into an all-oral, interferon-free pilot Phase 2 trial
    evaluating 12-week treatment with ACH-3102 and ribavirin for HCV GT 1b.

"Achillion achieved a number of significant milestones during the third
quarter, most notably the realization of proof-of-concept with ACH-3102. These
results demonstrated that ACH-3102 is a true second-generation, pan-genotypic
NS5A inhibitor that has shown that clinically it can overcome resistant HCV
variants as we had predicted based on preclinical studies," commented Michael
D. Kishbauch, President and Chief Executive Officer of Achillion.
"Furthermore, with our strengthened balance sheet and continued progress with
sovaprevir, our next-generation protease inhibitor, we believe that we are
poised to begin all-oral, interferon-free combination studies evaluating our
proprietary agents for the treatment of HCV in the coming months."

Third Quarter Results

Research and development expenses for the three months ended September 30,
2012 were $12.6 million, compared with $8.6 million for the same period of
2011. The increase was primarily due to increased expenses related to
preclinical and clinical testing of ACH-3102, partially offset by decreased
clinical trial expenses for sovaprevir, ACH-2684 and ACH-2928. For the three
months ended September 30, 2012, general and administrative expenses were $2.6
million, compared with $1.9 million incurred during the same period in 2011.

The Company recognized no revenue for the three months ended September 30,
2012, compared with approximately $64,000 of revenue during the same period in
2011. During the three months ended September 30, 2011, revenue consisted of
reimbursed costs under the Company's former collaboration with Gilead
Sciences, Inc.

Non-cash stock compensation expense totaled $934,000 for the third quarter of
2012 as compared with $658,000 for the third quarter of 2011, and is included
in research and development and general and administrative expenses.

Nine Month Results

For the nine months ended September 30, 2012, Achillion reported a net loss of
$35.9 million, increased from a net loss of $31.8 million in the same period
in 2011. The increase was primarily due to increased expenses related to
preclinical and clinical testing of ACH-3102, partially offset by decreased
clinical trial expenses for sovaprevir, ACH-2684 and ACH-2928. Total revenue
was $2.5 million, compared with $185,000 in the prior year period. Revenue
during the first nine months of 2012 was related to recognition of deferred
revenue under the Company's former collaboration with Gilead Sciences, Inc.

For the nine months ended September 30, 2012, research and development
expenses totaled $30.6 million, compared with $25.5 million during the same
period in 2011. Research and development expenses increased primarily as the
result of increased preclinical and clinical development costs of ACH-3102,
partially offset by decreased clinical trial expenses related to ACH-1625,
ACH-2684 and ACH-2928. General and administrative expenses were $8.0 million
for the nine months ended September 30, 2012, increased from $6.6 million in
the same period in 2011.

Non-cash stock compensation expense totaled $2.7 million for the nine months
ended September 30, 2012 as compared with $2.0 million for the same period in
2011, and is included in research and development and general and
administrative expenses.

About HCV

The hepatitis C virus is the most common cause of viral hepatitis, which is an
inflammation of the liver. It is currently estimated that more than 170
million people are infected with HCV worldwide including more than 5 million
people in the United States, making this disease more than twice as widespread
as HIV. Three-fourths of the HCV patient population is undiagnosed; it is a
silent epidemic and a major global health threat. Chronic hepatitis, if left
untreated, can lead to permanent liver damage that can result in the
development of liver cancer, liver failure or death. Few therapeutic options
currently exist for the treatment of HCV infection. The current standard of
care is limited by its specificity for certain types of HCV, significant
side-effect profile, and injectable route of administration.

About Achillion Pharmaceuticals

Achillion is an innovative pharmaceutical company dedicated to bringing
important new treatments to patients with infectious disease. Achillion's
proven discovery and development teams have advanced multiple product
candidates with novel mechanisms of action. Achillion is focused on solutions
for the most challenging problems in infectious disease including HCV and
resistant bacterial infections. For more information on Achillion
Pharmaceuticals, please visit www.achillion.com or call 1-203-624-7000.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 that are subject to
risks, uncertainties and other important factors that could cause actual
results to differ materially from those indicated by such forward-looking
statements, including without limitation statements with respect to:
expectations about the potential efficacy and benefits of ACH-3102 and the
Company's plans to initiateall-oral, interferon-free clinical trials
evaluating regimens containing sovaprevir and ACH-3102 for the treatment of
HCV in the coming months. Among the factors that could cause actual results to
differ materially from those indicated by such forward-looking statements are
risks relating to, among other things Achillion's ability to: replicate in
later clinical trials positive results found in earlier stage nonclinical
studies and clinical trials of sovaprevir, ACH-2684, and ACH-3102; advance the
development of its drug candidates under the timelines it anticipates in
current and future clinical trials; obtain necessary regulatory approvals;
obtain patent protection for its drug candidates and the freedom to operate
under third party intellectual property; establish commercial manufacturing
arrangements; identify, enter into and maintain collaboration agreements with
appropriate third-parties; compete successfully with other companies that are
seeking to develop improved therapies for the treatment of HCV; manage
expenses; and raise the substantial additional capital needed to achieve its
business objectives. These and other risks are described in the reports filed
by Achillion with the U.S. Securities and Exchange Commission, including its
Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and its
subsequent SEC filings.

In addition, any forward-looking statement in this press release represents
Achillion's views only as of the date of this press release and should not be
relied upon as representing its views as of any subsequent date. Achillion
disclaims any obligation to update any forward-looking statement, except as
required by applicable law.

                       -- Financial Tables Attached --

ACHILLION PHARMACEUTICALS INC. (ACHN)
Statements of Operations                                        
(Unaudited, in thousands, except per share amounts)
                                                               
                              Three Months Ended     Nine Months Ended
                               September 30,          September 30,
                              2012        2011        2012        2011
                                                               
Revenue                        $--      $64       $2,489    $185
                                                               
Operating expenses:                                             
Research and development      12,641     8,615      30,562     25,504
General and administrative   2,647      1,922      7,965      6,581
                                                               
Total operating expenses      15,288     10,537     38,527     32,085
                                                               
Loss from operations           (15,288)   (10,473)   (36,038)   (31,900)
                                                               
Other income (expense):                                         
Interest income               49         44         168        114
Interest expense              (16)       (9)        (53)       (35)
                                                               
Net loss                      $(15,255) $(10,438) $(35,923) $(31,821)
                                                               
Net loss per share - basic and $(0.20)   $(0.15)   $(0.50)   $(0.51)
diluted
                                                               
Weighted average shares
outstanding - basic and        74,647     69,725     72,099     62,392
diluted



Balance Sheets
(Unaudited, in thousands)
                                                                
                                                   September 30, December 31,
                                                    2012          2011
                                                                
Cash and cash equivalents and marketable securities $90,648     $79,943
Working capital                                     70,900       46,148
Total assets                                        94,871       82,630
Long-term liabilities                               436          2,718
Total liabilities                                   13,196       11,662
Total stockholders' equity                          81,675       70,968

CONTACT: Company Contact:
         Glenn Schulman
         Achillion Pharmaceuticals, Inc.
         Tel. (203) 624-7000
         gschulman@achillion.com
        
         Media:
         Christin Culotta Miller
         Ogilvy PR
         Tel. (646) 229-5178
         christin.miller@ogilvypr.com
        
         Investors:
         Mary Kay Fenton
         Achillion Pharmaceuticals, Inc.
         Tel. (203) 624-7000
         mfenton@achillion.com
        
         Investors:
         Seth Lewis
         The Trout Group, LLC
         Tel. (646) 378-2952
         slewis@troutgroup.com