In a press release after the markets closed on Thursday, Achillion Pharmaceuticals (NASDAQ:ACHN - News) announced that the company will be selling $41.8M in common stock to funds managed by QVT Financial LP. The shares were priced according to Thursdays closing price, at $6.57. The market is taking the fair-value pricing as a good sign for ACHN and shares are up 6% to $7.01 in early trading. Most stock offerings are sold at a discount to the market price. The capital raise also comes at a good time for ACHN; as of its most recent quarterly report released in August the company had enough capital for a little over a year of operations. Achillion is now well ahead of the curve and should be able to sustain operations beyond 2013.
Hepatitis C treatments have been a hot topic this month with the failure of Bristol-Myers Squibb's (NYSE:BMY - News) developmental compound and the suspension of two of Idenix Pharmaceuticals' (NASDAQ:IDIX - News) candidates. But alongside these two setbacks, Achillion's HCV program presents a nice play in the weakened field. See our most recent reports on Achillion by clickinghereandhere.
Seethis articleat PropThink.com.
About PropThink
PropThink is an intelligence service that delivers long and short trading ideas to investors in the healthcare and life sciences sectors. Our focus is on identifying and analyzing technically-complicated companies and equities that are grossly over or under-valued. We offer daily market coverage, weekly feature stories, and a newsletter to investors who subscribe on PropThink.com. To learn more visit us athttp://www.propthink.com.
