ACHN 2017 Annual Report

Achillion Pharmaceuticals, Inc. Statements of Cash Flows (in thousands) Years Ended December 31, 2017 2016 2015 Cash flows from operating activities Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (85,236) $ (61,706) $ (5,030) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,126 955 694 Noncash stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . 10,573 11,006 10,072 Loss on disposal of equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 8 2 Premium on purchases of marketable securities . . . . . . . . . . . . . . (1,094) (565) (2,486) Amortization of premium on marketable securities . . . . . . . . . . . . 1,079 985 2,002 Changes in operating assets and liabilities: Accounts and other receivables . . . . . . . . . . . . . . . . . . . . . . . 15,196 (14,750) (411) Prepaid expenses and other current assets . . . . . . . . . . . . . . . (313) (721) (837) Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,577) 2,693 (2,285) Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 834 (3,707) 3,856 Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . (66) 149 — Net cash provided by (used in) operating activities . . . . (59,478) (65,653) 5,577 Cash flows from investing activities Purchase of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (626) (2,508) (704) Purchase of marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (345,490) (499,115) (692,525) Maturities of marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372,091 562,292 394,575 Net cash provided by (used in) investing activities . . . . 25,975 60,669 (298,654) Cash flows from financing activities Proceeds from issuance of common stock in connection with public offerings, net of issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 138,260 Proceeds from issuance of common stock in connection with the JJDC Stock Purchase Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 158,877 Proceeds from exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . 39 108 3,730 Proceeds from sale of stock under the employee stock purchase plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 214 290 Payment of deferred financing costs . . . . . . . . . . . . . . . . . . . . . . . . . . . (175) — — Borrowings of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 444 229 Repayments of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (351) (246) (248) Net cash provided by (used in) financing activities . . . . (262) 520 301,138 Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . (33,765) (4,464) 8,061 Cash and cash equivalents, beginning of period . . . . . . . . . . . . . . . . . . . . . . 77,261 81,725 73,664 Cash and cash equivalents, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 43,496 $ 77,261 $ 81,725 Supplemental disclosure of cash flow information Cash paid for interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 52 $ 46 $ 50 Supplemental disclosure of noncash investing and financing activities Cashless exercise of warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,750 $ — $ 53 Purchases of equipment in accounts payable or accrued expenses . . . . $ 36 $ 199 — The accompanying notes are an integral part of these financial statements. F-7