Wednesday, May 20, 2015

Achillion partners with J&J to develop hepatitis C drugs

CORRECTED-UPDATE 

Achillion partners with J&J to develop hepatitis C drugsAchillion Pharmaceuticals Inc said it will collaborate with Johnson & Johnson to develop and market its hepatitis C drugs including an oral regimen that could work on all genotypes and shorten treatment time.

Achillion will be eligible for milestone payments of up to $1.1 billion related to the development, regulatory approval and sales of the drugs.

Johnson & Johnson will also invest $225 million in Achillion in return for about 18.4 million unregistered shares at $12.25 per share.

Achillion is developing three hepatitis C drugs -- ACH-3102 and sovaprevir in mid-stage trials and ACH-3422 in early-stage trials.

ACH-3102, which was granted fast-track designation in the United States, will be part of the oral regimen that could shorten treatment time to six weeks by 2018, the companies said on a call with analysts.

Gilead Sciences Inc's recently approved pill Harvoni requires at least eight weeks of treatment. The pill combines two of Gilead's other drugs - ledipasvir and sovaldi.

The fight against hepatitis C has made huge gains in recent years. A couple of years ago, patients needed 48 weeks of treatment with drugs that had harsh side effects. They cured only about 40 percent of patients.

The new all-oral treatments seek to replace injectable interferon and its flu-like side effects as well as an older drug called ribavirin that caused anemia and other problems.

Achillion's shares closed at $10.68 on the Nasdaq on Tuesday.

(Reporting by Amrutha Penumudi in Bengaluru; Editing by Don Sebastian)

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