This biopharma is forecasted to grown at an annual rate of 17.58% over the next five years.
Achillian Pharmaceuticals, Inc. (ACHN)
From The Cheap Investor
Achillian Pharmaceuticals, Inc. (ACHN) is a biopharmaceutical company that discovers, develops, and commercializes small molecule drug therapies for immune system disorders in the United States. Its lead drug candidate includes ACH-4471, an inhibitor of factor D that is in Phase II clinical trials for patients with paroxysmal nocturnal hemoglobinuria and C3 glomerulopathy.
The company is also developing ACH-5228, a factor D inhibitor that is in Phase I clinical trial; ACH-5548, a factor D inhibitor; and other factor D inhibitors.
It has license agreements with GCA Therapeutics, Ltd. and Ora, Inc., as well as a collaboration arrangement with Janssen Pharmaceuticals Inc. to develop and commercialize drug candidates for the treatment of chronic hepatitis C virus.
We like ACHN because the company has several products in FDA Trials, collaboration agreements with pharmaceutical companies and a large amount of cash. As of the end of its latest quarter, ACHN has $283 million ($2.05 a share) in cash. The company expects its burn rate to be about $63-65 million for the year, and at that current rate, it should have cash for about four years. ACHN has a book value of $2.02 and no debt.
The stock has huge institutional ownership, with 149 institutions owning 79% of the float. Its two largest shareholders, Blackrock and Vanguard, each own about 12 million shares. We think positive FDA news could move the stock price up to the $3-5 level.
Bill Mathews, The Cheap Investor, www.thecheapinvestor.com, 847-697-5666, January 7, 2018