UPDATE: Bank of America Downgrades Achillion Pharmaceuticals Following Extremely Negative Pipeline Update

In a report published Monday, Bank of America analyst Rachel McMinn downgraded the rating on

from Buy to Underperform, and lowered the price target from $10.00 to $2.00. In the report, Bank of America noted, “After the market close, ACHN provided an update on its HCV pipeline that we believe sets the company so far back that it is extremely unlikely its products will have strategic value in the highly competitive HCV development landscape. The one potential exception is the company's pre-clinical stage nuc, but chances of this product going into the clinic in a difficult regulatory environment and chances that it is as safe and as potent as GILD's sofosbuvir seem dishearteningly low, in our view. As such, we are downgrading from BUY to Underperform. We are lowering our PO from $10 to $2, which reflects ACHN's current cash position.” Achillion Pharmaceuticals closed on Friday at $7.24.