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PropThink: Lightweight Contender ACHN Declines on Gilead's Latest Hepatitis Data


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Copyright © Thomson Reuters 2012. All rights reserved.
2012-11-12 19:30:04 -

By Jake King

With Gilead's (NASDAQ:GILD) reported 100% Hepatitis C virologic response rate
over the weekend, rivals Achillion (NASDAQ:ACHN) and Vertex (NASDAQ:VRTX) traded
down 15% and 5% respectively at Monday's open. Vertex shareholders rightfully
have cause for alarm, as Incivek's blockbuster status may shortly be replaced by
more effective oral treatments. But Achillion's pipeline regimen isn't so far
behind Gilead's as to make it obsolete, despite the market's reaction. While
both Gilead and Abbot (NYSE:ABT) have a leg up in the development process,
Achillion's protease inhibitors suggest a strong safety and efficacy profile
without the risk associated with the now-infamous "nucs" that have plagued BMS
(NYSE:BMY) and Idenix (NASDAQ:IDIX).

Achillion also announced on Monday that a drug-drug interaction study evaluating
the combination of sovaprevir (ACH-1625, lead candidate) and ACH-3102 returned
no problems, and 
the company plans to push forward with a Phase 2 trial evaluating the protease inhibitor and the NS5A inhibitor together. The study will be highly indicative of the combination's effectiveness, especially as investors focus on Gilead's 100% cure rate and Abbot's 97% cure rate. The company expects those results in the first half of 2013. Continue reading by clicking here. Read this article at PropThink.com. About PropThink PropThink is an intelligence service that delivers long and short trading ideas to investors in the healthcare and life sciences sectors. Our focus is on identifying and analyzing technically-complicated companies and equities that are grossly over or under-valued. We offer daily market coverage, weekly feature stories, and a newsletter to investors who subscribe on PropThink.com. To learn more, follow us on Twitter or visit us at www.propthink.com. Disclaimer: You should assume that as of the publication date of any report or letter, PropThink, LLC and persons or entities with whom it has relation ships (collectively referred to as "PropThink") has a position in all stocks (and/or options of the stock) covered herein that is consistent with the position set forth in our research report. Following publication of any report or letter, PropThink intends to continue transacting in the securities covered herein, and we may be long, short, or neutral at any time hereafter regardless of our initial recommendation. To the best of our knowledge and belief, all information contained herein is accurate and reliable, and has been obtained from public sources we believe to be accurate and reliable, and not from company insiders or persons who have a relationship with company insiders. PropThink was not compensated to publish this article. Our full disclaimer is available at  www.propthink.com/disclaimer. This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: PropThink via Thomson Reuters ONE [HUG#1657200]


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