Achillion Reiterates HCV Pipeline Priorities and Reports Third Quarter and Nine Month 2013 Financial Results

Achillion Reiterates HCV Pipeline Priorities and Reports Third Quarter and
Nine Month 2013 Financial Results

NEW HAVEN, Conn., Nov. 12, 2013 (GLOBE NEWSWIRE) -- Achillion Pharmaceuticals,
Inc. (Nasdaq:ACHN) today reported financial results for the three and nine
months ended September 30, 2013 and provided an update on the Company's
portfolio of direct-acting antiviral compounds being developed for the
treatment of chronic hepatitis C virus (HCV).

For the third quarter of 2013, Achillion reported a net loss of $13.9 million
or $0.14 per share, compared with a net loss of $15.3 million or $0.20 per
share for the third quarter of 2012. Cash, cash equivalents, marketable
securities, and interest receivable as of September 30, 2013 were $173.1
million.

"Over the next few months our priority is to advance our proprietary assets
through critical milestones, including the completion of the preclinical work
necessary to initiate first-in-human trials with ACH-3422, our uridine-analog
nucleotide prodrug, for the potential treatment of chronic HCV," commented
Milind S. Deshpande, Ph.D., President and Chief Executive Officer of
Achillion. "Furthermore, we intend to engage in regulatory discussions
regarding the path forward for sovaprevir, which remains on clinical hold, and
in parallel, we plan to initiate early next year a drug-drug interaction study
followed by a therapeutic trial to evaluate our differentiated NS5A inhibitor,
ACH-3102, in combination with our macrocyclic protease inhibitor, ACH-2684."

Dr. Deshpande further commented, "We believe that our current cash balance of
approximately $173 million will be more than sufficient to reach several value
creating milestones and fund our operations for at least two years."

Third Quarter Results

For the three months ended September 30, 2013, Achillion reported a net loss
of $13.9 million compared with a net loss of $15.3 million during the same
period of 2012. The Company recognized no revenues for the three months ended
September 30, 2013 nor any during the same period in 2012.

Research and development expenses were $11.3 million for the three months
ended September 30, 2013, compared with $12.6 million for the same period of
2012. The decrease for the three months ended September 30, 2013 was primarily
due to decreased manufacturing costs associated with sovaprevir and decreased
clinical costs associated with ACH-2684, offset by increased clinical trial
costs related to ACH-3102 and the combination trial evaluating sovaprevir and
ACH-3102. For the three months ended September 30, 2013, general and
administrative expenses were $2.7 million, compared with $2.6 million incurred
during the same period in 2012. The increase in general and administrative
expenses was primarily due to an increase in non-cash charges related to stock
based compensation and increased business development consulting fees.

Non-cash stock compensation expense totaled $1.2 million for the third quarter
of 2013 as compared with $934,000 for the third quarter of 2012 and is
included in research and development and general and administrative expenses.

Nine Month Results

For the nine months ended September 30, 2013, Achillion reported a net loss of
$45.6 million, an increase from a net loss of $35.9 million in the same period
in 2012. There were no revenues during the first nine months of 2013, compared
with $2.5 million 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, 2013, research and development
expenses totaled $36.6 million, compared with $30.6 million during the same
period in 2012. Research and development expenses increased primarily due to
increased costs related to combination clinical trials and drug interaction
studies of sovaprevir and ACH-3102, increased costs related to the ACH-3422
preclinical studies as well as increased scientific consulting fees. Personnel
costs and non-cash charges related to stock based compensation also increased
primarily due to the addition of personnel in our development group. General
and administrative expenses were $9.4 million for the nine months ended
September 30, 2013, increased from $8.0 million in the same period in 2012.
The increase in general and administrative expenses was primarily due to an
increase in non-cash charges related to stock based compensation combined with
increased business development consulting fees.

Non-cash stock compensation expense totaled $4.3 million for the nine months
ended September 30, 2013 as compared with $2.7 million for the same period in
2012, 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 HCV more than twice as widespread as HIV.
Three-fourths of the global 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.

For additional information on Achillion's ongoing clinical trials please
visit: http://clinicaltrials.gov

About Achillion Pharmaceuticals

Achillion is an innovative pharmaceutical company dedicated to bringing
important new treatments to patients with infectious disease. Achillion's
discovery, clinical development, and commercial teams have advanced multiple
novel product candidates with proven mechanisms of action into studies and
toward the market. 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: our plans to initiate
clinical trials of ACH-3422, continue to engage in discussions with FDA
regarding the sovaprevir clinical hold, and initiate additional clinical
trials of ACH-3102 and ACH-2684; and our belief that our cash will be
sufficient to reach value creating milestones and fund operations for more
than two years. We may use words such as "expect," "anticipate," "project,"
"intend," "plan," "believe," "seek," " estimate," "may" and similar
expressions to identify such forward-looking statements. Among the important
factors that could cause actual results to differ materially from those
indicated by such forward-looking statements are risks relating to, among
other things our ability to: demonstrate in any potential future clinical
trials the requisite safety, efficacy and combinability of our drug
candidates; advance the preclinical and clinical development of our drug
candidates under the timelines we project; satisfactorily respond to the FDA's
requirements for removing the clinical hold placed on sovaprevir by the FDA;
obtain and maintain necessary regulatory approvals; obtain and maintain patent
protection for our 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; manage
litigation; raise the substantial additional capital needed to achieve our
business objectives; and successfully execute on our business strategies.
These and other risks are described in the reports we file with the U.S.
Securities and Exchange Commission, including our Quarterly Report on Form
10-Q for the fiscal quarter ended June 30, 2013 and its subsequent SEC
filings.

In addition, any forward-looking statement in this press release represents
our 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. We disclaim any duty
to update any forward-looking statement, except as required by applicable law.

ACHILLION PHARMACEUTICALS INC. (ACHN)
Statements of Operations
(Unaudited, in thousands, except per share amounts)
                                                               
                       Three Months Ended           Nine Months Ended
                       September 30,                September 30,
                       2013            2012           2013        2012
                                                               
Revenue                 $--          $--         $--      $2,489
                                                               
Operating expenses:                                             
Research and           11,342         12,641        36,629     30,562
development
General and            2,734          2,647         9,353      7,965
administrative
                                                               
Total operating        14,076         15,288        45,982     38,527
expenses
                                                               
Loss from operations    (14,076)       (15,288)      (45,982)   (36,038)
                                                               
Other income (expense):                                         
Interest income        166            49            429        168
Interest expense       (9)            (16)          (44)       (53)
                                                               
Net loss               $(13,919)     $(15,255)    $(45,597) $(35,923)
                                                               
Net loss per share -    $(0.14)       $(0.20)      $(0.49)   $(0.50)
basic and diluted
                                                               
Weighted average shares
outstanding - basic and 96,648         74,647        93,066     72,099
diluted
                                                               
                                                               
                                                                 
Balance Sheets                                                    
(Unaudited, in thousands)                                         
                                                               
                       September 30, December 31,            
                       2013            2011                      
                                                               
Cash, cash equivalents,
marketable securities   $173,068      $77,659                 
and interest receivable
Working capital         130,395        58,731                   
Total assets            176,061        81,530                   
Long-term liabilities   110            347                      
Total liabilities       11,648         9,483                    
Total stockholders'     164,413        72,047                   
equity

CONTACT: Company Contact:
         Glenn Schulman
         Achillion Pharmaceuticals, Inc.
         Tel. (203) 624-7000
         gschulman@achillion.com
        
         Media:
         Carol Ready
         Ogilvy PR
         Tel. (212)880-5211
         carol.ready@ogilvy.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

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