Gilead's Sofosbuvir Just Made Achillion Investors Very Happy

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On Monday, share prices of Achillion Pharmaceuticals, Inc. ACHN rose nearly 15 percent (though are now trading up about 8 percent) after the biopharma company announced positive results from the ongoing study to evaluate the efficacy, safety, and tolerability of six weeks of its hep-C drug ACH-3102, used in combination with Gilead Sciences, Inc.GILD's sofosbuvir.

The chief objective of the study is determination of continued viral response 12 weeks (SVR12) after therapy. 100 percent of patients (12/12) in the six-week treatment duration arm achieved SVR12, which included patients with high baseline viral load.

Dr. Milind Deshpande, President and Chief Executive Officer of Achillion, commented, "Our goal is to deliver short duration, widely accessible treatments to all HCV patients. We believe that these results with ACH-3102 represent the shortest duration and highest response achieved to date with any two-drug, direct-acting antiviral regimen for HCV. Given the exceptional profile of ACH-3102, we will now be evaluating four- and six-week treatment durations that leverage all of our HCV assets including ACH-3102, ACH-3422, and sovaprevir."

Shares of Achillion were up about 12 percent at $12.16 in Monday's premarket trading and opened at $12.09. The stock currently sits at a Zacks Rank #2 (Buy), and is in the top 30 percent in Zacks Industry Rank. Gilead Science, however, rests at a Zacks Rank #4 (Sell).

Other promising health care sector stocks include Navidea Biopharmaceuticals Inc NAVB. They reported first round Q4 total revenue of $2.2 million, topping analyst estimates of $2.1 million for the quarter. Navidea's total profit is likely to be $1.9 million for the quarter and $4.7 million for the year.

Keep an eye on Aurinia Pharmaceuticals Inc AUPH as well. In an announcement Monday, the company wants to initiate an open label, investigative study to evaluate the impact of the use of voclosporin in combination with mycophenolate mofetil in patients with active lupus nephritis. It is likely Aurinia could see a similar share increase like Achillion, though investors will likely have to wait for a bit more positive data first.