UPDATE: Piper Jaffray Downgrades Achillion Pharmaceuticals to Neutral, Lowers PT as Pipeline Setback Pushes Out Approval

In a report published Monday, Piper Jaffray analyst Edward A. Tenthoff downgraded the rating on

from Overweight to Neutral, and lowered the price target from $15.00 to $5.00. In the report, Piper Jaffray noted, “On Friday 9/27 after the close, Achillion announced that the FDA concluded that lifting the clinical hold on HCV protease inhibitor sovaprevir was NOT warranted. Further, the Phase II study of sovaprevir + ACH-3102 showed an RVR rate of only 79%. Achillion is now focusing development on 2nd-gen protease inhibitor ACH-2684 with Phase II combo data + NS5A inhibitor ACH-3102 next year. Achillion also expects to advance its nuc ACH-3422 into the clinic in 1H:14 and begin combo trials in 2H:14. We envision this setback pushes out Achillion first approval by at least 1 year to 2017. ACHN shares are indicated significantly lower this morning. Achillion will host a conference call this morning at 8:30AM ET to discuss clinical plans. We are downgrading Achillion to Neutral from Overweight and cutting our price target to $5 from $15.” Achillion Pharmaceuticals closed on Friday at $7.24.