Achillion Becomes Next Biotech Stock Chase (ACHN)
Achillion Pharmaceuticals, Inc. (NASDAQ: ACHN) is yet another example of traders, investors, and speculators willingness to chase drug development study news. With the major gainers we have seen in 2009 and as we are entering year-end, this is actually of little surprise. Still, you have to wonder when you see these stocks get chased and chased even if it can go on for days.
The company late yesterday reported “proof of concept data” from the preliminary results of its phase 1b clinical trial of ACH-1625. This study showed that treatment with ACH-1625 achieved a mean 3.94 log10 reduction in HCV RNA after five-day monotherapy, with continued good safety and tolerability in patients with hepatitis C (HCV). ACH-1625 is an inhibitor of HCV NS3 protease that was discovered and is being developed by Achillion. Keep in mind that Phase I data is very preliminary.
Shares are up 63% at $3.48 after closing at $2.15 yesterday. The company’s prior 52-week range was $0.65 to $2.42 before thsi morning. The market cap even after today’s gain is still only $92 million and average volume before today was 40,000 shares. At 8:45 AM EST we have already seen 2.3 million shares, so this one is exponential and parabolic on trading volume.
As of June 30, 2009, this one had over $20.4 million in combined cash and short-term investments, and only $10.19 million in total liabilities.
Jon C. Ogg
