Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN)
Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) has reported its financial results for the first quarter ended March 31, 2017. While commenting on the results, Achillion President and CEO Milind Deshpande, Ph.D. said the company successfully advanced ACH-4471, the first factor D inhibitor that is administered orally into Phase 2 development for PNH. He added that the company is still in the process of admitting patients into the study with the first patients having completed the 28 days of dosing. Patients are on a two-month therapy to access the safety and efficacy of the drug and the company hopes to report the results from the study within this quarter.
Dr. Deshpande says the company is in a better position to advance novel drugs that can help in addressing the unmet needs for patients around the world. Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) currently enjoys a robust balance sheet plus strategic global partnership with Janssen who has admitted patients for the Phase 2b OMEGA-1 clinical trial.
PNH is a life-threatening disease often characterized by destruction of red blood cells, formation of blood clots, impaired functioning of the bone marrow, and increased chances of contracting leukemia.
Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) reported (-$20.2) million or (-$0.15) per share in net loss for the three months ended March 31, 2017. This compared to a net loss of (-$18.1) million or (-$0.13) per share that the company reported in the three months ended March 31, 2016. At the end of the quarter, the company had $386.6 million in cash, cash equivalents, interest receivable and marketable securities.
In the three months ended March 31, 2017, Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) reported $15.5 million in net research and development expenses compared to $13.3 million that was reported in the first quarter of 2016. The increase resulted from higher consulting costs and clinical trial fees related to ACH-4471 together with costs in preclinical and manufacturing activities related to the next generation factor D inhibitor compounds.
The company reported $5.7 million in general and administrative expenses in the first quarter of 2017 compared to $5.4 million that was reported at a similar period the previous financial year. The increase was due to higher consulting and legal fees.
During the quarter, Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) incurred $3.2 million in expenses towards non-cash stock compensation compared to the$3.0 million that was reported in the first quarter of 2016. This expenditure also covers research and development activities.
The company’s stock rose 16.67% to close at $4.41 on a volume of 5.74 million shares.
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About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.