Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN)

zzlangerhans (99.78) Submitted: 12/14/2010 11:27:26 AM : Start Price: $3.06 ACHN Score: -120.14

Achillion survived a 50M dilutive financing in August to rise significantly after the initiation of the phase II trial of ACH-1625. These events mean that Achillion will end the year with a comfortable cash cushion but also a bloated market cap which is now disproportionate to their risk/benefit ratio. I doubt 28 day data on ACH-1625 will be remarkable enough to lift the share price in early 2011, leaving the rest of 2011 before 12 week data provides a more substantial catalyst. In the meantime, the stock will remain exquisitely vulnerable to broad market pullbacks. In addition, the most recent PR fails to mention elvucitabine, which makes me wonder if this compound is simply pipeline window dressing.