Wall Street Hot and Bothered About Idenix (IDIX) and Achillion (ACHN) After INHX/BMY Deal

A number of Wall Street analysts weighed in on Idenix Pharmaceuticals, Inc. (Nasdaq: IDIX) and Achillion Pharmaceuticals, Inc. (Nasdaq: ACHN) Monday following the takeover of Hep C peer Inhibitex, Inc. (Nasdaq: INHX) by Bristol-Myers Squibb (NYSE: BMY) over the weekend at a 163% premium.

• Commenting on both stocks, Leerink Swann notes: "These moves leave IDIX (OP) and ACHN (OP), each now representing the only acquirable asset in their respective classes. IDIX's nucleotide polymerase IDX189 could complement the existing portfolios of MRK (OP), VRTX (OP), JNJ (OP), and ABT (OP). Similarly ACHN's four candidates of protease and NS5A inhibitors could be a fit for NVS (OP), Roche, and VRTX, among the existing hep C players."
  
  
• Commenting on both stocks, Wedbush notes: "With INHX now off the table, we believe investor interest will intensify on the two remaining HCV companies with unpartnered assets, Idenix (IDIX – OUTPERFORM) and Achillion (ACHN – OUTPERFORM). Due to the rapidity at which the independent HCV companies are being taken-out, we anticipate that investors will increasingly speculate that these companies will be acquired by the end of the year. In our view, Idenix is more likely to be acquired first due to the appetite for nucleotide inhibitors and the fact that IDX-184 now represents the only clinical-stage nucleotide that is not yet partnered. Indeed, we expect IDIX to report important 30-day safety and efficacy data of IDX-184 this month. Should the data be positive (which we expect it to be), IDIX could be acquired shortly thereafter."
  
  
• Commenting on ACHN, Wells Fargo notes: "Interim data from the first 35 patients in the phase II study for lead protease inhibitor ACH1625 showed strong 100%
  cEVR (12week undetectable rates) across all doses (200, 400, and 800mg) even
  higher than the ~80% bar we believe was necessary for the drug to be competitive... We expect upside for ACHN today based both on this data and the news that another earlystage HCV company, INHX, was acquired for a significant premium. Today's data reaffirm our enthusiasm for ACHN's portfolio and we would be buyers into strength."

Shares of Idenix are up 33 percent and Achillion is up 10 percent early Monday.

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