Replies to post #77906 on Biotech Values

[DewDiligence]

ACHN closed off 21% on the bad news about ACH-1095. Inasmuch as ACH-1095 is the second compound in ACHN’s collaboration with GILD to run into trouble (ACH-806, the first such compound, was dropped due to toxicity), the new revelation calls into question ACHN’s proprietary technology vis-à-vis NS4A inhibitors for HCV.

ACHN still has ACH-1625, a protease inhibitor based on an altogether different technology. However, with such drugs as Telaprevir and Boceprevir the HCV PI arena is much more developed than the NS4A arena, and hence investors should discount of the value of the ACH-1625 accordingly.

All told, I think ACHN’s 21% haircut today could’ve been worse.