Why Achillion Pharmaceuticals Stock Is Falling Today
Shares of Achillion Pharmaceuticals (NASDAQ: ACHN) are falling hard today after the company announced that Johnson & Johnson (NYSE: JNJ) has decided to sell 18.4 million of the drugmaker's shares. This public offering represents all of J&J's holdings in the small-cap drugmaker, and it will reportedly not yield any proceeds for Achillion. As of 11:48 a.m. EST, Achillion stock is down by 11.92% on heavy volume on this news.
Image source: Getty Images.
The timing of J&J's decision to dump its entire stake in Achillion is somewhat perplexing. Achillion, after all, just released positive early-stage data for its experimental kidney-disease treatment, ACH-4471, that could eventually be a big winner from a sales standpoint down the road. Apparently, J&J felt it was time to completely cut the cord after its hepatitis C development deal with Achillion fell apart due to the rapidly changing dynamics surrounding this shrinking market.
Source: Fool.com
