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Achillion Pharmaceuticals (ACHN)

Business description

Achillion Pharmaceuticals is engaged in the discovery and development of treatments for chronic hepatitis C virus (HCV) and progressing compounds from its research platform in its novel factor D program. The company is collaborating with Janssen Pharmaceuticals (J&J) to develop and commercialize its HCV franchise including a promising combination treatment, which holds the potential to be best in class.

From takeout to taking it on

Update | Pharmaceuticals & healthcare | 21/07/2015

Achillion’s collaborative deal with Janssen Pharmaceuticals (Johnson and Johnson), announced 19 May, repositions Achillion as a viable, independent concern with a high-potential Hep-C franchise, a small molecule programme targeting the complementary Factor D pathway and noteworthy research platform. The agreement lays to rest any speculation as to an outright company takeover. The deal, entailing up to $900m in milestones and a $225m equity investment, is value enhancing on our analysis, moving our valuation to $2.3bn from $1.9bn as Janssen takes on all R&D costs, paying royalties on sales from mid-teens to low twenties.

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