Boston, MA 06/10/2014 (wallstreetpr) – Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN)’s shares pumped up on Monday powered by upbeat investments, as speculations are rife that ACHN can emerge as the next big Hepatitis-C takeout target.
IDIX Buyout: A Timely Move
Merck & Co., Inc.(NYSE:MRK), a globally renowned healthcare company took over the reigns of Idenix Pharmaceuticals Inc (NASDAQ:IDIX) on Monday at a whopping $3.85 billion deal. Soon after this big news made the headlines on Monday, the share price plummeted up nearly 229% by the day’s close.
MRK unveiled a planned strategic acquisition of IDIX at a juncture wherein the latter has four exquisite Hepatitis C treatments under its disposition, among with two are currently in Phase2-Trials, another in Phase1-Trials and the fourth one is merely in its preclinical trials.
IDIX has also filed petitions and sued Gilead Sciences, Inc. (NASDAQ:GILD), claiming that the latter’s Hepatitis-C drug – Sovaldi holistically infringes upon IDIX’s previous patents. Thus, it is implied that MRK’s move was a cautious and tactical bid to buy IDIX at such a crucial juncture; MRK might expect gobbling up maximal profits, lest certain uncalled for disaster doldrums are inflicted upon it. Incidentally, GILD’s shares have tumbled further as investors speculate that the MRK-IDIX deal bears testimony to GILD’s fallibility over the patent-issues.
All Eyes On ACHN
The IDIX acquisition deal tantalized ACHN investors largely because all and sundry are aware of the contention that MRK had to face during its acquisition process, with a major research based pharma company, AbbVie Inc (NYSE:ABBV) and another prime name in the healthcare industry – Johnson & Johnson (NYSE:JNJ).
Traders quite rightly anticipate that ACHN shall have many bidders in the days to come, as major pharma or healthcare companies won’t allow their rival MRK build its own Hepatitis-C drugs’ user-base, without any competition.
Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) possesses a profound Hepatitis-C drug pipeline, just like IDIX. The major drugs in the pipeline are a fast-track NS5A-Inhibitor drug – ACH-3102, another NS3/4-Inhibitor drug – ACH-2684 and an NS5B-Inhibitor – ACH-3422. ACH-3422 is perhaps the most valuable ‘Nuc’ available with ACHN, that shall bolster the Hepatitis-C treatment.
The GILD Model
Gilead Sciences, Inc. (NASDAQ:GILD) had announced that the Q1 sales of its antiviral products soared up 119% year-over-year, powered by Sovaldi’s gains of $2,274,349! Enhanced profitability and market gains by selling Hepatitis C drugs have evolved as the basis for MRK’s IDIX acquisition, and Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN)’s sell-out anticipations!
