Achillion Analysts Weigh In; Maxim Downgrades, Highlights HCV Drug's Need for Extreme Levels of Safety

Shares of Achillion Pharma

are down more than 24 percent Tuesday morning amid unfavorable FDA findings for its Hepatitis C drug Sovaprevir. A subsequent downgrade to Hold and removal of an $18 price target from Maxim is also weighing on shares this morning. "Disappointing" drug interactions between Sovaprevir and other treatments equates to, at best, a limited market opportunity for the drug, Maxim's Jason Kolbert said. Wells Fargo analyst Brian Abrahams said the FDA's drug interaction study "slightly weakens" Achillion's competitive position, but maintained an Outperform rating on Achillion nonetheless.