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Why Achillion Pharmaceuticals Inc. Shares Were Eviscerated

Sean Williams
September 30, 2013

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Achillion Pharmaceuticals (NASDAQ: ACHN), a developer of therapies targeting the hepatitis-C virus and other infectious diseases, plummeted as much as 60% following disappointing news from the Food and Drug Administration regarding sovaprevir, its lead hepatitis-C compound.

So what: According to an after-the-bell Friday press release, Achillion noted that the FDA had decided to keep its clinical hold on sovaprevir despite meeting all requirements as laid out in the FDA's clinical hold notification three months ago. The clinical hold stems from an early-stage drug-to-drug interaction trial between sovaprevir and atazana