(Source: PrimeNewswire)
NEW HAVEN, Conn., Nov. 6, 2009 (GLOBE NEWSWIRE) -- Achillion Pharmaceuticals, Inc. (Nasdaq:ACHN), a leader in the discovery and development of small molecule drugs to combat the most challenging infectious diseases, today reported financial results for the three and nine months ended September 30, 2009. For the third quarter of 2009, the Company reported a net loss of $6.4 million, compared with a net loss of $6.7 million for the same period last year. Cash, cash equivalents and marketable securities as of September 30, 2009 were $15.3 million.
"In September, we announced completion of the phase 1a segment of our on-going clinical trial with ACH-1625, our protease inhibitor for the treatment of hepatitis C virus (HCV) infection. We were pleased to announce that ACH-1625 was shown to be safe and well tolerated in both single-ascending and multiple-ascending dose segments," said Michael Kishbauch, President and CEO of Achillion. "We are currently completing the phase 1b segment of this trial in patients infected with HCV and plan to announce efficacy results in the first quarter 2010. We look forward to obtaining proof-of-concept data in this important therapeutic area."
"Based on the safety and tolerability data we have seen to date in clinical studies of ACH-1625, and its potential for convenient once-daily dosing, we would expect that positive efficacy data from the ongoing phase 1b clinical trial could make ACH-1625 an attractive candidate for fixed dose combinations of direct acting antivirals and an important future treatment option for HCV patients. Coupled with progress in our other two HCV programs, we believe we are at a pivotal point in the development of our pipeline," he added.
Third Quarter Results
For the three months ended September 30, 2009, the Company reported a net loss of $6.4 million, compared with a net loss of $6.7 million for the three months ended September 30, 2008. Total revenues were negative $54,000 for the third quarter of 2009, compared with $25,000 for the third quarter of 2008. Revenues relate to the Company's collaboration agreement with Gilead Sciences to develop compounds for use in treating chronic hepatitis C. Revenues decreased and were negative as the result of an excess of payments made to Gilead over amounts received from Gilead, as the collaboration provides for an equal sharing of externally incurred costs. In addition, during the quarter, Achillion did not recognize any revenue related to amortization of its up-front, milestone and FTE payments previously received under the agreement, as at this time the collaboration does not have a lead compound upon which it can accurately estimate its future performance obligations.
Research and development expenses were $4.5 million in the third quarter of 2009, compared with $5.0 million for the same period of 2008. The decline in research and development expenses is related to a decrease in outsourced research costs, specifically related to clinical trial costs for elvucitabine and preclinical trial costs for ACH-1625 and ACH-702, each of which is now completed but which were ongoing in 2008. Such decreases were partially offset by clinical trial costs for ACH-1625.
For the three months ended September 30, 2009, general and administrative expenses were $1.5 million, essentially equal to the $1.6 million incurring during the same period in 2008.
In addition, the Company incurred $332,000 in restructuring costs during the third quarter of 2009 related to a reduction in workforce that took place in July.
