Achillion Reports 2012 Fourth Quarter and Year-End Financial Results

Achillion Reports 2012 Fourth Quarter and Year-End Financial Results

- Conference call and webcast to be held today, February 20^th, at 5:00 pm EST
                                      -

NEW HAVEN, Conn., Feb. 20, 2013 (GLOBE NEWSWIRE) -- Achillion Pharmaceuticals,
Inc. (Nasdaq:ACHN) today reported financial results for the three and twelve
months ended December 31, 2012.

For the three months ended December 31, 2012, the Company reported a net loss
of $11.2 million, compared to a net loss of $12.4 million in the three months
ended December 31, 2011. For the full year ended December 31, 2012, the
Company's net loss was $47.1 million, compared to a net loss of $44.2 million
for the year ended December 31, 2011. Cash and cash equivalents and marketable
securities at December 31, 2012 were $77.4 million.

Recent HCV Pipeline Accomplishments

  *Announced plans to initiate in the second quarter of 2013 a Phase 2
    clinical trial evaluating 12 weeks of therapy consisting of sovaprevir and
    ACH-3102, with ribavirin,for the treatment of genotype 1 treatment-naive
    HCV;
    
  *Reported interim Phase 2 results indicating that six out of eight patients
    receiving 12 weeks of therapy consisting of ACH-3102 and ribavirin for the
    treatment of genotype 1b, IL28B CC genotype, HCV achieved rapid virologic
    response (RVR) and three out of three patients who completed treatment
    also remained HCV RNA undetectable four weeks after completion of therapy
    (SVR4); and
    
  *Achieved Phase 1 proof-of-concept with once daily ACH-2684, a second
    generation protease inhibitor, in genotype 1 HCV patients, with and
    without cirrhosis.

Anticipated Clinical Milestones for 2013

ACH-3102: Phase 2 second-generation NS5A inhibitor

  *Expand the Phase 2 clinical trial evaluating 12 weeks of therapy
    consisting of ACH-3102 and ribavirin, for the treatment of genotype 1b
    treatment-naive HCV during the second quarter of 2013;
    
  *Report SVR4 results following 12 weeks of therapy consisting of ACH-3102
    and ribavirin for the treatment of genotype 1b, IL28B CC genotype, HCV in
    the second quarter of 2013; and
    
  *Provide RVR results from the Phase 2 trial of ACH-3102 and ribavirin for
    genotype 1b treatment-naive HCV during the third quarter of 2013.

Combination of sovaprevir and ACH-3102 for the treatment of genotype 1 HCV

  *Initiate dosing patients in a Phase 2 trial evaluating 12 weeks of
    sovaprevir and ACH-3102, withribavirin,for the treatment of genotype 1
    HCV during the second quarter of 2013; and
    
  *Report interim Phase 2 results from this first sovaprevir and ACH-3102
    combination, including RVR, during the third quarter of 2013.

Fourth Quarter 2012 Financial Results

The Company reported a net loss of $11.2 million for the three months ended
December 31, 2012, compared to a net loss of $12.4 million for the three
months ended December 31, 2011. Research and development expenses were $8.4
million in the fourth quarter of 2012, compared to $9.9 million for the same
period of 2011, the decrease primarily resulting from the timing of clinical
trial activities, offset by an increase in development group personnel.
Revenue for the three months ended December 31, 2012 totaled $118,000 compared
to $62,000 in the three months ended December 31, 2011.

For the three months ended December 31, 2012, general and administrative
expenses totaled $2.9 million, compared to $2.6 million in the same period in
2011, the increase primarily resulting from higher business development and
professional services fees.

Year-end 2012 Financial Results

For the year ended December 31, 2012, the Company reported a net loss of $47.1
million, compared to a net loss of $44.2 million in 2011. For the year ended
December 31, 2012, research and development expenses totaled $39.0 million,
compared to $35.4 million in 2011. The increase in research and development
expenses was primarily a result of increased personnel levels and increased
clinical trial costs associated with the development of sovaprevir and
ACH-3102, offset by decreased manufacturing expenses for ACH-2684.

Total revenues were $2.6 million for the year ended December 31, 2012,
compared to $247,000 for the year ended December 31, 2011. The majority of
revenue during 2012 was related to recognition of $2.5 million of deferred
revenue under the Company's former collaboration with Gilead Sciences, Inc.

General and administrative expenses were $10.9 million for the year ended
December 31, 2012, compared to $9.2 million for the year ended December 31,
2011, the increase primarily resulting from increased non-cash stock
compensation combined with increased business development and professional
services fees.

2013 Financial Guidance

At December 31, 2012, Achillion had cash and cash equivalents and marketable
securities of approximately $77.4 million. The Company expects that research
and development expenses during 2013 will be approximately $50 million and
that net cash used in operating activities in 2013 will approximate $55
million based on current operating plans, anticipated timelines and the
estimated cost of clinical trials and product development programs. The net
loss per share is anticipated to approximate $0.75 per share.

Conference Call

The Company will host a conference call and simultaneous webcast on Wednesday,
February 20, 2013 at 5:00 p.m. Eastern time. To participate in the conference
call, please dial (877) 266-0482 in the U.S. or (631) 291-4567 for
international callers. A live audio webcast of the call will be accessible at
www.achillion.com, under the News Center section of the website. Please
connect to Achillion's website several minutes prior to the start of the
broadcast to ensure adequate time for any software download that may be
necessary.

A replay of the webcast will be available on www.achillion.com. Alternatively,
a replay of the conference call will be available starting at 8:00 p.m.
Eastern time on February 20, 2013, through 11:59 p.m. Eastern time on February
27, 2013 by dialing (855) 859-2056 or (404) 537-3406. The replay passcode is
13062862.

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, 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 statements with respect to: the potency, safety,
tolerability, effectiveness and other characteristics of Achillion's protease
inhibitors and NS5A inhibitors; Achillion's expectations regarding timing for
the commencement, completion and reporting of results of clinical trials of
drug candidates in its protease inhibitor and NS5A inhibitor programs;
Achillion's ability to advance a potentially best-in-class all-oral,
interferon-free combination protease and NS5A inhibitor; and Achillion's
estimates for research and development expenses, net cash used in operations
and net loss per share for the year ended December 31, 2013. 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 clinical trials of sovaprevir, ACH-3102 and its other
product candidates; 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, 2012 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       Year Ended
                       December 31,             December 31,
                                                           
                       2012           2011        2012        2011
                                                           
Revenue                 $118         $62       $2,607    $247
                                                           
Operating expenses:                                         
Research and            8,436         9,937      38,999     35,441
development
General and             2,936         2,572      10,901     9,153
administrative
Total operating         11,372        12,509     49,900     44,594
expenses
                                                           
Loss from operations    (11,254)      (12,447)   (47,293)   (44,347)
                                                           
Other income (expense):                                     
Interest income         66            72         234        186
Interest expense        (16)          (10)       (68)       (45)
                                                           
Net loss                $(11,204)    $(12,385) $(47,127) $(44,206)
                                                           
                                                           
Net loss per share -    $(0.14)      $(0.18)   $(0.64)   $(0.69)
basic and diluted
                                                           
Weighted average shares
outstanding - basic and 79,523        69,755     73,965     64,248
diluted
                                                           
                                                           
                                                                         
Balance Sheets                                                
(Unaudited, in thousands)                                     
                                                           
                       December 31, December              
                                       31,
                       2012           2011                   
Cash and cash
equivalents and         $77,418      $79,943              
marketable securities
Working capital         58,731        46,148                
Total assets            81,530        82,630                
Long-term liabilities   347           2,718                 
Total liabilities       9,483         11,662                
Total stockholders'     72,047        70,968                
(deficit) equity

CONTACT: Company Contact:
         Glenn Schulman
         Achillion Pharmaceuticals, Inc.
         Tel. (203) 624-7000
         gschulman@achillion.com
        
         Investors:
         Mary Kay Fenton
         Achillion Pharmaceuticals, Inc.
         Tel. (203) 624-7000
         mfenton@achillion.com

         Media:
         Christin Culotta Miller
         Ogilvy PR
         Tel. (212) 880-5264
         christin.miller@ogilvy.com
                 
         Investors:
         Seth Lewis
         The Trout Group, LLC
         Tel. (646) 378-2952
         slewis@troutgroup.com