Achillion Pharmaceuticals (ACHN) Stock Is On A Breakout Climb | Will Gains Last

Achillion Pharmaceuticals ACHN Stock NewsAchillion Pharmaceuticals, Inc. (NASDAQ: ACHN)

Achillion Pharmaceuticals stock is soaring in the market today. However, it seems to have caught many investors by surprise. The company planned an announcement at 2015 UBS Global Healthcare Conference that was scheduled for today. However, it seems like the reason for the cancellation is sparking a rumor that investors can get behind. So today, we’ll talk about what that rumor is, how the market is reacting, and what we can expect to see from the stock moving forward. So, let’s get right to it…

Achillion Pharmaceuticals Cancels UBS Engagement

As many other experts, I was looking forward to the ACHN engagement today at the UBS Healthcare Conference. Unfortunately, after searching quite a bit this morning, I couldn’t find a thing about their appearance. So, looking for answers, I jumped to Stock Twits to see if anyone was in the know. It didn’t take very long to find the rumor that’s leading to today’s climbs. I quickly spotted the below comment from Skwirrlmaster

$ACHN is up 10% today. Engagement at UBS canceled. Potential $GILD buyout for their inhibitor?”

While there hasn’t been any evidence that GILD is planning on acquiring ACHN, there has been a ton of conversation about either ABBV or GILD potentially expanding their HCV pipelines and research through an acquisition of ACHN. So, with a big engagement canceled, it would only make sense that investors are looking for a reason and reverting back to the idea that ACHN may be acquired. The reality is that there has to be a big reason for missing the engagement; and an acquisition could be an incredibly profitable reason.

How Investors Are Reacting To The News

While Achillion being acquired by either GILD or ABBV is more of a rumor than news at the moment, it seems as though the missed engagement is a cause for excitement in the market today. Currently (1:28), ACHN is trading at $10.64 per share after a gain of 11.13%. No matter what the reason for the gain, investors are welcoming the movement after months of declines.

Where Achillion Pharmaceuticals Is Most Likely Headed

While there’s simply not enough information to get a good idea of the future direction of the stock at the moment, one can always speculate. With that said, this can go one of two ways. If ACHN did indeed cancel the UBS engagement as the result of a potential acquisition in the works, we’re likely to see substantial climbs in the value of the stock. However, if they canceled for any negative reason, we could see the exact opposite. It’s also important to note that ACHN has been experiencing slow and steady declines in the market for months now. So, if there is good news, the price is definitely low enough to make a decent profit!

What Do You Think?

Where do you think ACHN is headed and why? Let us know in the comments below!

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