Achillion Pharmaceuticals, Inc. (NASDAQ: ACHN) is having an overwhelmingly strong day in the market today, and for good reason. News broke of a positive opinion surrounding Orphan Drug status of one of the company’s pipeline treatments in Europe. Of course, this is leading to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for ahead.
ACHN Announces Positive Regulatory News
As mentioned above, Achillion Pharmaceuticals is having an incredibly strong start to the trading session in the pre-market hours this morning after announcing regulatory news. In a press release issued early this morning, the company announced that the European Medicines Agency (EMA) Committee for Orphan Medical Products (COMP) has provided news. According to the release, the Committee has informed ACHN that it has issued a positive opinion surrounding ACH-4471 for orphan status in the European Union. The treatment is designed to combat C3 glomerulopathy, also known as C3G.
In a statement, Milind Deshpande, Ph.D., CEO at ACHN, had the following to offer:
We are very pleased that ACH-4471, a first-in-class, oral inhibitor of complement factor D, has received a positive orphan status opinion for the treatment of C3G. At Achillion, we continually work to enhance the awareness of C3G, a rare renal disorder consisting of dense deposit disease (C3G) and C3 glomerulonephritis (C3GN) for which there are no approved therapies.
The mechanism of action for our factor D inhibitors, highlighted by the safety and efficacy data observed to date with ACH-4471, we believe represents a truly novel and targeted approach to potentially treating C3G, a chronic and devastating disease affecting the kidney. By specifically targeting factor D, we believe we are targeting the root cause of disease, which experts attribute to overactivation of the alternative pathway. By inhibiting factor D, we believe ACH-4471 may be able to reduce the excessive formation of C3 fragments in the blood which in C3G are continually being deposited in the kidney leading to impaired function and potentially renal failure.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Achillion Pharmaceuticals, the news proved to be overwhelmingly positive. After all, Orphan Drug Designation comes with serious benefits, and the company is likely to receive the designation for ACH-4471. So, it’s no surprise to see that excited investors are sending the stock screaming for the top. At the moment (7:24), ACHN is trading at $3.25 per share after a gain of $0.30 per share or 9.98% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ACHN. In particular, we’re interested in following the continued development of ACH-4471 as the treatment seems to be overwhelmingly promising. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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