As always additional issues shares are issued according to present Mkt value and JNJ agrees to Buy equity investment with18Million additional shares at $12.25, however the real value exceeds $18 per shares today also. Now with given fact that JNJ will rule the HCV market and ACHN the shares are going well above $30 moment the results will be announced buying today ACHN would be the Rockbottom.
Good thinking ! How come Analyst donot raise this. Logic makes sense and thats were JNJ importance comes into the Picture. People might not know the real deal as of its face value and so as the Analyst.
Zytiga has had the most successful introduction of any oral treatment for cancer, having been used by more than 60,000 patients worldwide. It generated first quarter sales of $344 million, putting it on track toward full-year sales well above the $1 billion J&J paid for Cougar Biotechnology
As for J&J, the health care giant did well last year with Olysio, which was widely prescribed along with Gilead’s Sovaldi, even though the combination was never approved by the FDA. But then Gilead introduced Harvoni, effectively displacing the J&J medicine. As a result, J&J became something of an also-ran behind Merck and AbbVie ABBV -0.56% in vying for a chunk of Gilead’s business.
Now, though, the Achillion deal suggests that J&J may have revived its potential. R.W. Baird analyst Brian Skorney, for instance, writes that “while it’s hard to get enthusiastic about a backend, loaded hepatitis C deal with the fourth-most relevant player in the space, we think there is a scenario where J&J can emerge with the only regimen better than Gilead’s.”
Impact On Other HCV Names
According to the report, Deutsche Bank is not making any changes to its forecasts for Gilead Sciences, Inc. (NASDAQ: GILD) or AbbVie Inc (NYSE: ABBV) based on the Johnson & Johnson/Achillion deal.
But that they said when Zytiga entered Prostate Cancer Drugs ...
JNJ enters Prostate Cancer when DNDN was on Top with MDVN placed Second ...Now ZYTIGA is on Top as 74th Largest selling Drug in the world by $ Value
JNJ Paid $1 billion for Aragon Pharmaceuticals and its ZYTIGA called ARN-509,experimental drugs for prostate cancer and that has become a leading brand. J&J's blockbuster Zytiga treatment, acquired through its $1 billion purchase of Cougar Biotechnology in 2009, was approved in 2011 Zytiga has become a blockbuster only two years after being launched, it could face competition from cheaper generics by 2016 in the United States, while ARN-509 will have U.S. marketing exclusivity until 2028.
Johnson & Johnson's Janssen worth up to $1.1 billion in the form of development, regulatory and sales milestone payments as well as a separate equity investment.
Achillion entered into a collaboration with Johnson & Johnson's Janssen worth up to $1.1 billion in the form of development, regulatory and sales milestone payments as well as a separate equity investment. The agreement is related to the development and commercialization of one or more of Achillion's lead hepatitis C virus (HCV) assets which include ACH-3102, ACH-3422, and sovaprevir.
All development as well as commercialization costs will be funded by Janssen. Moreover, Achillion will be entitled to tiered royalties between mid-teens and low-twenties on global sales.
The HSR Act provides that parties must not complete certain mergers, acquisitions or transfers of securities or assets, including grants of executive compensation, until they have made a detailed filing with the U.S. Federal Trade Commission and Department of Justice and waited for those agencies to determine that the transaction will not adversely affect U.S. commerce under the antitrust laws. While parties can carry out due diligence and plan for post-merger integration, they may not take any steps to integrate operations, such as an acquiring party obtaining operational control of the acquired party
A key objective of the collaboration will be to develop a short-duration, highly effective, pan-genotypic, oral regimen for the treatment of HCV. An initial regimen that is planned to be explored will feature Achillion's ACH-3102, an NS5A inhibitor currently in Phase 2 clinical studies that has been granted Fast Track designation by the U.S. Food and Drug Administration, in combination with an NS3/4A HCV protease inhibitor plus an NS5B HCV polymerase inhibitor from the collaboration.
You will regret Selling ACHN on News ..Consolidate more because $12.25 is assured anyhow.
Its Good that they didnot Sell at this time ! Option to Sell is always open plus No expenses hence forth and Marketing with Strong company like JNJ put ACHN on Map with GILD, Abbve or Merk
ALXN and VRTX options are also open now for the Pipeline !
1. JNJ can not buy something not proven.
2. No Expenses for ACHN to run Phase3 and Approvals
3. Mkting Expenses = $0 and JNJ can give tough competition to everyone out there worldwide including GILD
4. Royalties Hansome in Millions.
5. Now ACHN concentrate for D-factor Inhibitors and compete with VRTX
Either throw in the towel or Pump it to dump....but everyday 6-7million stock for 2 penny....common too much waste of time...