Achillion Reports Third Quarter Results
NEW HAVEN, Conn., Nov 6, 2009 (GlobeNewswire via COMTEX News Network) -- Achillion Pharmaceuticals, Inc. (Nasdaq:ACHN), a leader in the discovery and development of small molecule drugs to combat the most challenging infectious diseases, today reported financial results for the three and nine months ended September 30, 2009. For the third quarter of 2009, the Company reported a net loss of $6.4 million, compared with a net loss of $6.7 million for the same period last year. Cash, cash equivalents and marketable securities as of September 30, 2009 were $15.3 million.
"In September, we announced completion of the phase 1a segment of our on-going clinical trial with ACH-1625, our protease inhibitor for the treatment of hepatitis C virus (HCV) infection. We were pleased to announce that ACH-1625 was shown to be safe and well tolerated in both single-ascending and multiple-ascending dose segments," said Michael Kishbauch, President and CEO of Achillion. "We are currently completing the phase 1b segment of this trial in patients infected with HCV and plan to announce efficacy results in the first quarter 2010. We look forward to obtaining proof-of-concept data in this important therapeutic area."
"Based on the safety and tolerability data we have seen to date in clinical studies of ACH-1625, and its potential for convenient once-daily dosing, we would expect that positive efficacy data from the ongoing phase 1b clinical trial could make ACH-1625 an attractive candidate for fixed dose combinations of direct acting antivirals and an important future treatment option for HCV patients. Coupled with progress in our other two HCV programs, we believe we are at a pivotal point in the development of our pipeline," he added.
Third Quarter Results
For the three months ended September 30, 2009, the Company reported a net loss of $6.4 million, compared with a net loss of $6.7 million for the three months ended September 30, 2008. Total revenues were negative $54,000 for the third quarter of 2009, compared with $25,000 for the third quarter of 2008. Revenues relate to the Company's collaboration agreement with Gilead Sciences to develop compounds for use in treating chronic hepatitis C. Revenues decreased and were negative as the result of an excess of payments made to Gilead over amounts received from Gilead, as the collaboration provides for an equal sharing of externally incurred costs. In addition, during the quarter, Achillion did not recognize any revenue related to amortization of its up-front, milestone and FTE payments previously received under the agreement, as at this time the collaboration does not have a lead compound upon which it can accurately estimate its future performance obligations.
Research and development expenses were $4.5 million in the third quarter of 2009, compared with $5.0 million for the same period of 2008. The decline in research and development expenses is related to a decrease in outsourced research costs, specifically related to clinical trial costs for elvucitabine and preclinical trial costs for ACH-1625 and ACH-702, each of which is now completed but which were ongoing in 2008. Such decreases were partially offset by clinical trial costs for ACH-1625.
For the three months ended September 30, 2009, general and administrative expenses were $1.5 million, essentially equal to the $1.6 million incurring during the same period in 2008.
In addition, the Company incurred $332,000 in restructuring costs during the third quarter of 2009 related to a reduction in workforce that took place in July. Non-cash stock compensation expense totaled $479,000 for the third quarter of 2009, and is included in both research and development and general and administrative expenses, and compares with $606,000 of non-cash stock compensation expense in the third quarter of 2008.
Cash, cash equivalents and marketable securities as of September 30, 2009 were $15.3 million. This does not include any amounts associated with the stand-by equity distribution agreement entered into on July 1, 2009, which to date has not been utilized by the Company.
Nine Month Results
For the nine months ended September 30, 2009, the Company reported a net loss of $19.2 million, compared with a net loss of $19.5 million in the same period in 2008. Total revenues for the first nine months of 2009 were negative $355,000, compared with $1.1 million in the prior year period. Revenues decreased primarily as a result of not amortizing upfront, milestone and FTE payments made to Achillion by Gilead.
For the nine months ended September 30, 2009, research and development expenses totaled $13.7 million, compared with $15.5 million during the same period in 2008. Research and development expenses decreased primarily as the result of lower outsourced research costs, including those costs noted above, as well as expenses related to a collaboration with FOB Synthesis, which was not continued in 2009, offset by costs related to initiating clinical testing of ACH-1625. General and administrative expenses were $4.7 million for the nine months ended September 30, 2009, compared with $4.9 million in the same period in 2008.
Non-cash stock compensation expense totaled $1.5 million for the nine months ended September 30, 2009, and is included in both research and development and general and administrative expenses, and compares with non-cash stock compensation expense of $1.7 million for the first nine months of 2008
About Achillion
Achillion is an innovative pharmaceutical company dedicated to bringing important new treatments to patients with infectious disease. The company'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 - hepatitis, resistant bacterial infections and HIV. For more information on Achillion Pharmaceuticals, please visit the company's web site at www.achillion.com or call Achillion at 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 factors, including statements with respect to Achillion's expectations regarding the timing and duration of clinical trials, the Company's expectations regarding the release of data from ongoing clinical trials, the Company's performance under its collaboration agreement, the Company's ability to raise additional funding and the expected benefits of the Company's expense reductions. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: Achillion's ability to attract and develop potential collaboration relationships; unexpected regulatory actions or delays; uncertainties relating to results of clinical trials, including additional data relating to ongoing clinical trials, and Achillion's ability to obtain additional funding required to conduct its research, development and commercialization activities. 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 year ended December 31, 2008.
All forward-looking statements reflect Achillion's expectations only as of the date of this release and should not be relied upon as reflecting Achillion's views, expectations or beliefs at any date subsequent to the date of this release. Achillion anticipates that subsequent events and developments may cause these views, expectations and beliefs to change. However, while Achillion may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so.
ACHN-G
ACHILLION PHARMACEUTICALS INC. (ACHN)
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Statements of Operations
(Unaudited, in thousands, except per share amounts)
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Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ ----------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Revenue $ (54) $ 25 $ (355) $ 1,050
--------- --------- --------- ---------
Operating
expenses:
Research and
development 4,479 5,016 13,684 15,496
General and
administrative 1,459 1,614 4,660 4,911
Restructuring
charges 332 -- 332 --
--------- --------- --------- ---------
Total
operating
expenses 6,270 6,630 18,676 20,407
--------- --------- --------- ---------
Loss from
operations (6,324) (6,605) (19,031) (19,357)
--------- --------- --------- ---------
Other income
(expense):
Interest income 21 159 170 612
Interest expense (124) (269) (451) (828)
--------- --------- --------- ---------
Net loss
before tax
benefits (6,427) (6,715) (19,312) (19,573)
Tax benefit 36 50 106 122
--------- --------- --------- ---------
Net loss $ (6,391) $ (6,665) $ (19,206) $ (19,451)
========= ========= ========= =========
Net loss per
share - basic
and diluted $ (0.24) $ (0.31) $ (0.73) $ (1.11)
========= ========= ========= =========
Weighted
average
shares
outstanding
- basic and
diluted 26,655 21,432 26,492 17,586
========= ========= ========= =========
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Balance Sheets
(Unaudited, in thousands)
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Sept. 30, Dec. 31,
2009 2008
---------- ----------
Cash and cash equivalents and
marketable securities $ 15,292 $ 35,357
Working capital 8,300 24,359
Total assets 17,373 38,561
Long-term liabilities 2,489 1,361
Total liabilities 10,159 13,540
Total stockholders' equity 7,214 25,021
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SOURCE: Achillion Pharmaceuticals, Inc.
CONTACT: Achillion Pharmaceuticals, Inc. Mary Kay Fenton (203) 624-7000 mfenton@achillion.com Lippert/Heilshorn & Associates, Inc. Investors: Anne Marie Fields (212) 838-3777 afields@lhai.com Bruce Voss (310) 691-7100 bvoss@lhai.com
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