Achillion reports lower net loss of $5.6M for first-quarter 2010

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 months ended March 31, 2010. For the first quarter of 2010, the Company reported a net loss of $5.6 million or $0.16 per share, compared with a net loss of $6.7 million or $0.25 per share for the first quarter of 2009. Cash, cash equivalents and marketable securities as of March 31, 2010 were $25.0 million, up $15.3 million compared with December 31, 2009.

"The early part of this year has been important for Achillion. The feedback we received from clinicians and other knowledgeable reviewers of our clinical data with ACH-1625 at the recent European Association for the Study of the Liver (EASL) International Liver Congress in Vienna was exceptionally positive," said Michael D. Kishbauch, President and Chief Executive Officer of Achillion. "Our data demonstrated that the compound has strong potency, good safety and a sustained viral suppression effect. We look forward to announcing shortly additional data from our latest dosing cohorts of ACH-1625. We are also pleased to have strengthened our balance sheet in the first quarter through an underwritten public offering that provided cash resources to advance ACH-1625 and the other HCV candidates in our pipeline." 

First Quarter Results

For the first quarter of 2010, the Company reported a net loss of $5.6 million or $0.16 per share, compared with a net loss of $6.7 million or $0.25 per share for the first quarter of 2009. Cash, cash equivalents and marketable securities as of March 31, 2010 were $25.0 million, up $15.3 million compared with December 31, 2009. 

Revenue for the three months ended March 31, 2010 was $74,000, compared with negative revenue of $293,000 for the three months ended March 31, 2009. The negative revenue in the previous year reflected an excess of amounts billed by Gilead Sciences to Achillion under a collaboration agreement between the two companies, compared to amounts billed by Achillion to Gilead. 

Research and development expenses were $4.0 million in the first quarter of 2010, compared with $4.7 million for the same period of 2009. Research and development expenses were primarily related to costs incurred from clinical trials with the Company's HCV protease inhibitor, ACH-1625, which is completing a phase 1b trial, and late-stage preclinical assessments of the Company's two additional HCV compounds, ACH-1095 and ACH-2684. 

For the three months ended March 31, 2010, general and administrative expenses totaled $1.7 million, increased slightly from $1.6 million for the same period in 2009.