November 02, 2007 at 07:00 AM EDT
Achillion Reports Third Quarter 2007 Financial Results

NEW HAVEN, Conn., Nov. 2, 2007 (PRIME 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 quarter ended September 30, 2007.

For the third quarter of 2007, the Company reported a net loss of $5.9 million, compared to a net loss of $5.1 million in the third quarter of 2006. Cash and cash equivalents and marketable securities at September 30, 2007 were $39.6 million.

"Achillion recently reported positive 12-week safety, tolerability and efficacy data from a Phase 2 trial of elvucitabine in an HIV treatment-naive population, and we look forward to continuing progress in this program," said Michael Kishbauch, President and Chief Executive Officer of Achillion. "Importantly, we have now completed the 24-week treatment segment of this study and patients are continuing therapy into the 48 week segment. In addition, we have just concluded enrollment in a separate Phase 2 trial of elvucitabine in HIV treatment-experienced patients. We look forward to reporting both of these data sets early in the New Year. We have also begun to discuss this information with prospective partners in an effort to form a collaboration for a fixed-dose HIV combination treatment including elvucitabine that could provide a more durable treatment alternative for patients."

Kishbauch continued, "On the hepatitis C front, we continue to make advances with Gilead Sciences in our NS4A antagonist program for HCV infection. We have now developed a pro-drug of ACH-1095 that we expect to move forward, and we anticipate being in clinical trials in the second half of 2008. Finally, in our antibacterial program, we continue working with ACH-702, an exciting compound that we believe addresses the serious health threat made clear in recent news stories about MRSA infection. ACH-702 has a broad spectrum of both gram positive and gram negative in vitro activity, a bactericidal profile, and the ability to be dosed in both oral and IV forms."

Third Quarter 2007 Results

The Company reported a net loss attributable to common stockholders of $5.9 million for the three months ended September 30, 2007, compared to a net loss attributable to common stockholders of $6.5 million for the three months ended September 30, 2006. Total revenues were $0.9 million for the third quarter of 2007, compared to $1.2 million in revenue for the third quarter of 2006.

Research and development expenses were $5.9 million in the third quarter of 2007, compared to $5.3 million for the same period of 2006. Research and development expenses were primarily related to Achillion's Phase 2 clinical trials of elvucitabine, pre-clinical development of ACH-702, and late stage discovery efforts in collaboration with Gilead in advancing ACH-1095.

For the three months ended September 30, 2007, general and administrative expenses totaled $1.6 million, compared to $1.0 million for the same period in 2006.

About Achillion

Achillion is an innovative pharmaceutical company dedicated to bringing important new treatments to patients with infectious disease. The company's proven discovery and development teams have advanced multiple product candidates with novel mechanisms of action. Achillion is focused on solutions for the most challenging problems in infectious disease -- HIV, hepatitis and resistant bacterial infections. For more information on Achillion Pharmaceuticals, please visit the company's web site at www.achillion.com or call Achillion at 1-203-624-7000. ACHN-G

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors, including statements with respect to completion and success of Achillion's preclinical studies and clinical trials of Achillion's drug candidates. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: unexpected regulatory actions or delays; uncertainties relating to results of clinical trials, including additional data relating to ongoing clinical trials; Achillion's ability to obtain additional funding required to conduct its research, development and commercialization activities and Achillion's dependence on its collaboration with Gilead Sciences. These and other risks are described in the reports filed by Achillion with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2006.

All forward-looking statements reflect Achillion's expectations only as of the date of this release and should not be relied upon as reflecting Achillion's views, expectations or beliefs at any date subsequent to the date of this release. Achillion anticipates that subsequent events and developments may cause these views, expectations and beliefs to change. However, while Achillion may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so.



 ACHILLION PHARMACEUTICALS INC. (ACHN)
 ---------------------------------------------  --------------------
 Statements of Operations
 (Unaudited, in thousands, except per share 
  amounts)
 ---------------------------------------------  --------------------

                          Three Months Ended       Nine Months Ended
                            September 30,            September 30,   
                        ----------------------  --------------------
                         2007          2006       2007          2006
                         ----          ----       ----          ---- 

 Revenue                $    900     $   1,196  $   3,645   $   5,514 
                        --------     ---------  ---------   --------- 
 Operating expenses:
  Research and 
   development             5,854         5,300     21,939      16,338 
  General and 
   administrative          1,607         1,023      4,878       3,340 
                        --------     ---------  ---------   --------- 
    Total operating 
     expenses              7,461         6,323     26,817      19,678 
                        --------     ---------  ---------   --------- 
  Loss from 
   operations             (6,561)       (5,127)   (23,172)    (14,164)
                        --------     ---------  ---------   --------- 
 Other income (expense):
  Interest income            581           162      2,005         430 
  Interest expense          (241)         (232)      (748)       (679)
  Change in fair value 
   of put right liability     --            72         --          72 
  Tax benefit                327             9        698          59 
                        --------     ---------  ---------   --------- 
    Total other income 
     (expense), net          667            11      1,955        (118)
                        --------     ---------  ---------   --------- 
 Net loss                 (5,894)       (5,116)   (21,217)    (14,282)
 Preferred stock 
  dividends and 
  accretion                   --        (1,407)        --      (3,693)
                        --------     ---------  ---------   --------- 
 Net loss 
  attributable to 
  common 
  stockholders          $ (5,894)    $ (6,523)  $(21,217)   $(17,975)
                        ========     ========   ========    ========
 Net loss attributable 
  to common stockholders
  per share - basic 
  and diluted           $  (0.38)    $ (12.69)  $  (1.36)   $ (35.11)
                        ========     ========   ========    ========
 Weighted average 
  shares outstanding - 
  basic and diluted       15,607          514     15,568         512 
                        ========     ========   ========    ========

 --------------------------------------------------------------------
 Balance Sheets
 (Unaudited, in thousands)
 --------------------------------------------------------------------
                                          September 30,  December 31, 
                                              2007          2006 
                                          -------------  ------------
  Cash and cash equivalents and 
    marketable securities                  $   39,643    $   62,566
  Working capital                              29,148        53,190
  Total assets                                 43,711        67,146
  Long-term liabilities                         3,568         8,102
  Total liabilities                            15,788        19,776
  Total stockholders' (deficit) equity         27,923        47,370
CONTACT:  Achillion Pharmaceuticals, Inc.
          Mary Kay Fenton
          (203) 624-7000
          mfenton@achillion.com

          MacDougall Biomedical Communications, Inc.
          Media:
          Chris Erdman
          (508) 647-0209
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