BUY Achillion Pharmaceuticals, Inc. (ACHN) – last $1.80; 10.15.09, 7:45 am DT .               (* Market opening – $1.96 if not able to buy pre-market.)   ACHN – a leader in the discovery and development of small molecule drugs to combat the most challenging infectious diseases, today announced that the Company has completed Phase 1a of its ongoing clinical trial of ACH-1625, a protease inhibitor for the treatment of hepatitis C virus (HCV) infection, and has begun dosing HCV-infected patients in the Phase 1b segment of the trial.  … ACHN engages in the discovery, development, and commercialization of treatments for infectious diseases. The company focuses on the development of antivirals for the treatment of chronic hepatitis C and HIV infection; and the development of antibacterials for the treatment of resistant bacterial infections. Its products include ACH-1095, a NS4A antagonist that is in late-stage preclinical studies for the treatment of chronic hepatitis C infections; ACH-1625, a protease inhibitor, which is in the preparation for phase I initiation for the treatment of chronic hepatitis C infections; ACH-702, a preclinical candidate that is in preclinical stage with potency against a spectrum of bacterial pathogens, including methicillin-resistant staphylococcus aureus for drug resistant bacterial infections; and Elvucitabine, which completed phase II studies for the treatment of HIV infection. The company has a collaboration arrangement with Gilead Sciences, Inc. to develop and commercialize compounds for use in treating hepatitis C infection, which inhibit viral replication through a mechanism of action. … The Bean believes Achillion currently represents one of the more undervalued small-cap biotech names and it deserves a higher valuation. Looking historically at the stock appreciation associated with strong Phase I data from other HCV compounds, they would have expected Achillion to be trading at least in the mid-single digit range. With Phase Ib data expected in 1Q10 and a Phase I to begin on a second program before year-end, they believe now is the time to be buying ACHN shares. They note the potency/differentiating factor of this drug is demonstrated from its lower dose vs competitor’s drugs for HCV infections.  Achillion trades at a 26% discount to its 52-week high of $2.42. SPM+Game Theory 67 LONG  EXIT POINT  $6.50.