JMP Note:
Achillion Pharmaceuticals' Phase 2 Sparta doublet trial start with HCV nuc on track, while competitive data at the European liver meeting (EASL) suggest slightly lower bar for ACHN; reiterate our Market Outperform rating and $24 price target. At the European liver conference (EASL) in Vienna, we met with ACHN management and learned of the following updates on the timing of the data from ACHN’s Hepatitis C portfolio: 1) the initiation of the Sparta doublet (ACH-3422 + ACH-3102 for a six-, eight- and 12-week duration) is imminent; 2) data from Sparta doublet are expected towards YE15 (likely after AASLD) with data from all three durations likely to be announced simultaneously; 4) we expect the Sparta triplet study (ACH3102+ACH-3422+sovaprevir) to start at the end of 2015/early 2016 as ACHN awaits the data readout from both Sparta doublet and Ithaca triplet to inform the study. Data presented at EASL for GILD’s triple combination, focused on shortening therapy for the treatment of HCV, suggests a lower competitive bar for ACHN (four-week duration a no-go, while a six-week duration would be deemed "ok" for easy to treat patients). It appears that with their next wave of HCV regimens, drug developers continue to tailor treatment duration according to disease severity evaluating the six- to eight-week range with triple combinations. We continue to view ACHN’s strategy to shorten duration to six weeks as risky with its dual regimen, but 12 weeks or even eight weeks may be achievable and the first set of data for ACHN should become available at YE15.
