Billionaire Steve Cohen Bullish Again (And Now More Than Ever) On Achillion Pharmaceuticals, Inc. (ACHN)

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The more likely possibility is that Cohen became far more bullish on Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) following its deal with Janssen Pharmaceuticals, Inc., a subsidiary of Johnson & Johnson (NYSE:JNJ), which was announced on May 19. The deal sees Achillion give worldwide license and commercialization rights of its HCV assets to Janssen, which includes its lead candidate ACH-3102, as well as ACH-3422 and sovaprevir. Achillion will receive milestone payments of up to $1.1 billion as part of the deal, based on developmental and sales goals, while Johnson & Johnson (NYSE:JNJ) has also agreed to make an equity investment of $224 million in Achillion.

The market did not have the same initial reaction as Cohen, if indeed that was his impetus for the large purchase; shares of Achillion fell by 15% on May 20, the day after the announcement, just two days after gaining 15% one day before the announcement. The deal seemingly disappointed investors who were holding onto Achillion’s stock anticipating a sale of the company, while alternatively creating an intriguing buying opportunity for longer-focused investors who should stand to benefit from the deal.

Among the investors in our database who held Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) at the end of March were Peter Kolchinsky’s RA Capital Management, a longterm shareholder of the stock, which has been one of his top picks for the past two years, and James Flynn’s healthcare-focused fund Deerfield Management.

Disclosure: None

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