Achillion Pharmaceuticals sets $14 to $16 target price for upcoming IPO

By Angela McDaniels

Seattle, Sept. 22 - Achillion Pharmaceuticals, Inc. will offer 4.5 million shares of common stock in its upcoming initial public offering and talked the initial price at between $14.00 and $16.00 per share, according to an F-1/A report filed with the Securities and Exchange Commission on Thursday.

The company originally filed for the IPO at an estimated size of $75 million in April.

Cowen and Co. LLC is bookrunner, CIBC World Markets Corp. is lead manager and JMP Securities LLC is co-manager. They have been granted a greenshoe for 675,000 shares.

The New Haven, Conn.-based biopharmaceutical company develops products for the treatment of infectious diseases. Elvucitabine is the company's lead clinical-stage drug and is in phase 2 clinical trials for the treatment of HIV infection.

The company's other products are ACH-806, also known as GS 9132, and ACH-702. ACH-806 is being evaluated for the treatment of chronic hepatitis C in a proof-of-concept trial with Gilead Sciences, Inc., and ACH-702 is in preclinical development for the treatment of hospital-based bacterial infections.

IPO proceeds will be used to continue the development of elvucitabine, ACH-806 and ACH-702, for research and development and for general corporate purposes.

Achillion said it had $20.214 million of cash, cash equivalents and marketable securities at June 30, compared with $9.583 million at the end of 2005.

The company had a $8.996 million net loss on revenue of $4.318 million for the six months ended June 30, compared with an net loss of $6.628 million on revenue of $4.865 million for the same period of 2005.

Achillion had 10.3 million shares of common stock outstanding on Sept. 15. Atlas Venture Fund V, LP and affiliated entities are the largest shareholders with 19.58% of the equity followed by Schroder Ventures International Life Sciences Fund II LP1 and affiliated entities at 17.03%, funds affiliated with Advent International Corp. at 11.16% and Bear Stearns Health Innoventures, LP and affiliated entities at 9.77%.

The company will apply to list its stock on the Nasdaq National Market under the symbol "ACHN."

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