Actionable news
0
All posts from Actionable news
Actionable news in ACHN: Achillion Pharmaceuticals, Inc.,

Achillion Reports Third Quarter And NINE MONTH 2015 FINANCIAL RESULTS

The following excerpt is from the company's SEC filing.

today reported financial results for the three and nine months ended September 30, 2015. For the third quarter of 2015, Achillion reported a net income of $26.3 million or $0.19 per share, compared with a net loss of $15.7 million or $0.16 per share for the third quarter of 2014. Cash, cash equivalents, marketable securities, and interest receivable as of September 30, 2015 were $476 million.

In just the few months following our announced worldwide collaboration with Janssen, I am pleased with the significant prog ress achieved in advancing short duration therapy for HCV, highlighted by the recently initiated Phase 2a trial evaluating a regimen consisting of odalasvir, simeprevir and ALS-335. We look forward to next quarter when we anticipate top-line SVR results from this study, commented Milind S. Deshpande, Ph.D., President and Chief Executive Officer of Achillion.

Dr. Deshpande continued, Significant progress has been made with our internally discovered complement inhibitor platform. We anticipate making a regulatory filing by year-end that will allow for initiation of human clinical trials with our first small-molecule factor D inhibitor in the first quarter. The advances in our program are highlighted by the research generated by Dr. Robert Brodsky and his colleagues from Johns Hopkins University which has been selected for both an oral presentation at the ASH Annual Meeting this December and inclusion in the 2016 Highlights of ASH.

Third Quarter Results

For the three months ended September 30, 2015, Achillion reported a net income of $26.3 million compared with a net loss of $15.7 million during the same period of 2014.

During the third quarter, Achillion and Janssen Pharmaceuticals, Inc. (Janssen), one of the Janssen Pharmaceutical Companies of Johnson & Johnson, completed the closing of the collaboration providing Janssen with an exclusive, worldwide license to develop and, upon regulatory approval, commercialize HCV products and regimens containing one or more of Achillions HCV assets. Assuming successful development and commercialization, Achillion is eligible to receive up to $905 million in clinical, regulatory and commercialization milestone payments. Achillion is also eligible to receive tiered royalty percentages between mid-teens and low-twenties based upon future worldwide sales. Janssen is responsible for all of the development costs within the collaboration and all subsequent costs related to commercialization of the HCV assets. Achillion received $225 million from Johnson & Johnson Innovation JJDC, Inc. following the issuance of 18,367,346 shares of Achillion at a price of $12.25 per share.

Achillion recognized in the third quarter of 2015 revenue of $33.8 million under the Janssen Agreement, representing a portion of the premium paid by JJDC associated with its equity purchase of Achillion common stock which is being recognized over the 180-day technology transfer period. No revenue was recognized during the three months ended September 30, 2014.

Research and development expenses were $12.0 million for the three months ended September 30, 2015, compared with $12.1 million for the same period of 2014. The increase was primarily due to increased preclinical and manufacturing costs related to our complement inhibitor program and increased manufacturing costs related to ACH-3422. These amounts were partially offset by decreased clinical trial costs related to our odalasvir and sofosbuvir combination trial and ACH-2684 clinical and manufacturing costs. Personnel and non-cash stock-based compensation costs also increased due to the addition of personnel in our development group.

General and administrative expenses were $4.9 million for the three months ended September 30, 2015, compared with $3.7 million incurred during the same period in 2014. The increase for the three months ended September 30, 2015 was primarily due to increased business consulting and corporate legal fees related to the Janssen Agreement, increased corporate fees and taxes, and increased personnel and non-cash stock-based compensation costs addition of personnel.

Non-cash stock compensation expense totaled $2.2 million for the third quarter of 2015 as compared with $1.6 million for the third quarter of 2014 and is included in research and development and general and administrative expenses.

Nine Month Results

For the...


More