Biotech Values

[mcbio]

Re: ACHN conference call

I’m looking forward to hearing about ACHN’s HCV program whose compounds have an MoA so novel that the MoA couldn’t be disclosed. I think management’s handling of investor expectations with respect to this program has been silly, and this has (IMO) lowered management’s credibility, which wasn’t that high to begin with.

I understand what you're saying as they mentioned the program awhile back, but have yet to offer any meaningful details. Management did indicate that they were in the process of completing pre-clinical tox work for these compounds and that has been the hold-up in announcing the program. I guess the reasoning is: what's the point in discussing a program in much detail if you have yet to satisfy yourself that the pre-clinical profile looks clean? Presumably they are at that stage now and that's why we'll hear more about these compounds now. However, ACH-1625 needs to take center stage during this call as that compound is the key value-driver for ACHN in the very near future IMHO. And management also needs to properly address the recent dilution during the call.

From today’s PR:
Quote:
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…the Company will provide an update on partnering efforts related to its non-HCV assets, elvucitabine and ACH-702.
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[Dew] If the update is that ACHN plans to spend even a dime of its own money on these programs, that would be bearish, IMO.

Agreed. However, I don't expect this to be the case given how they've indicated that HCV is ACHN's primary focus now.