ACHN 2017 Annual Report

ITEM 9B. OTHER INFORMATION Restructuring On February 18, 2018, our board of directors committed to the implementation of a restructuring plan that will reduce employee headcount by approximately 20% to approximately 70 employees. We expect this reduction in employee headcount to be completed by March 2018. The restructuring plan was implemented following a strategic assessment of our portfolio. During the assessment, our management team and board of directors concluded that our strategic focus would be on the development of our existing clinical candidates and late-stage preclinical compounds. We assessed the staffing levels required to accomplish our revised strategic goals and determined to reduce our staff across several functional areas, while retaining the biology and chemistry core strengths necessary to advance our complement factor D portfolio. In connection with the restructuring, we estimate that we will incur approximately $1.5 million of charges during the first quarter of 2018 related to expected severance and other employee costs. We expect to realize estimated cost savings of approximately $10 million in 2018 compared to our 2017 expense level. Changes in Executive Officer Roles On February 18, 2018, our board of directors appointed Joseph Truitt to the position of President and Chief Operating Officer, effective immediately. Mr. Truitt, age 53, has served as our Executive Vice President and Chief Operating Officer since September 2017 and, prior to that, as our Executive Vice President and Chief Commercial Officer since joining Achillion in January 2009. Prior to joining Achillion in January 2009, Mr. Truitt was Vice President of Business Development and Product Strategy for Lev Pharmaceuticals, Inc., a biotechnology company, from October 2007 to December 2008. From July 2006 through September 2007, he served as Lev’s Vice President of Sales and Marketing and led the build out of the commercial team and infrastructure in preparation for product launch. From February 2002 to July 2006, Mr. Truitt was Vice President of Sales and Operations at Johnson & Johnson, a pharmaceutical company, where he directed commercial operations at the company’s OraPharma subsidiary. From 2000 to 2002, Mr. Truitt was Vice President of Sales and Operations of OraPharma, Inc., a pharmaceutical company, prior to its acquisition by Johnson & Johnson. Mr. Truitt holds an M.B.A. from St. Joseph’s University, Philadelphia and a B.S. in Marketing from LaSalle University, Philadelphia. There are no family relationships between Mr. Truitt and any director or executive officer of Achillion. Mr. Truitt has not has engaged in any related person transaction (as defined in Item 404(a) of Regulation S-K) with Achillion. In connection with Mr. Truitt’s promotion to President and Chief Operating Officer, effective on February 18, 2018, Dr. Deshpande’s title and role were changed from “President and Chief Executive Officer” to “Chief Executive Officer.” Mr. Truitt will continue to report to Dr. Deshpande. 96