Anacor Pharmaceuticals Reports Third Quarter 2012 Financial Results

Anacor Pharmaceuticals Reports Third Quarter 2012 Financial Results

Anacor Pharmaceuticals, Inc.Geoff Parker, 650-543-7516Chief Financial OfficerDeDe Sheel, 650-543-7575Director, Investor Relations and Corporate Communications

Anacor Pharmaceuticals (NASDAQ:ANAC) announced today its financial results for the third quarter ended September 30, 2012.

“We are looking forward to announcing the results of our Phase 3 trials of tavaborole in onychomycosis in January 2013 for the first trial and approximately six weeks later for the second trial. Subject to the results of these studies, we expect to file a NDA for tavaborole in mid-2013,” said David Perry, CEO of Anacor Pharmaceuticals. “We also plan to announce data from the Phase 2 safety, pharmacokinetics and efficacy study of AN2728 for the treatment of atopic dermatitis in adolescents by the end of 2012 and the Phase 2 dose-ranging study of AN2728 in adolescents in early 2013.”

for the quarter ended September 30, 2012 were $2.5 million, compared to $12.6 million for the comparable period in 2011. For the three months ended September 30, 2012, we recognized $0.9 million for research funding and $0.2 million of the $3.5 million upfront fee received under our collaboration agreement with Lilly, $0.3 million of the $7.0 million upfront fee received under the Medicis agreement and $0.3 million primarily for research funding under our collaboration agreement with GSK. We also recognized $0.8 million for research work performed under other research and development agreements, including our agreements with not-for-profit organizations for neglected diseases. Revenues for the third quarter of 2011 were higher than those for the current quarter due mainly to the recognition of the remaining $4.5 million of the original upfront fee received from our GSK collaboration agreement and an additional $5.0 million amendment fee, both in connection with the amendment of our agreement with GSK in September 2011, as well as a $1.0 million development milestone earned in July 2011 under our Lilly collaboration agreement.

were $13.6 million for the third quarter of 2012, compared to $14.0 million for the same quarter in 2011. The decline was primarily due to a net decrease in activities under our research and development collaborations. Research and development spending on our lead compounds for the third quarter of 2012 remained flat compared to the same quarter of 2011 as decreased expenses for AN2728 and AN2898 offset an increase in expenses related to the preparation of our NDA filing for tavaborole.

for the third quarter of 2012 were $2.8 million, compared to $2.7 million for the comparable period in 2011.

totaled $36.6 million at September 30, 2012.

Anacor will host a conference call at 5:00 p.m. ET / 2:00 p.m. PT today, during which management will discuss the Company’s financial results and recent developments. The call can be accessed by dialing (877) 291-1367 (domestic) and (914) 495-8534 (international) five minutes prior to the start of the call. The call will also be webcast live and can be accessed on the Events and Presentations page, under Investors, on the Company’s website at and will be available for three months following the call.

Anacor is a biopharmaceutical company focused on discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. Anacor has discovered seven compounds that are currently in development. Its two lead product candidates are topically administered dermatologic compounds — tavaborole, a topical antifungal for the treatment of onychomycosis, and AN2728, a topical anti-inflammatory PDE-4 inhibitor for the treatment of atopic dermatitis and psoriasis. In addition to its two lead programs, Anacor has discovered three other clinical product candidates — AN2718 and AN2898, which are backup compounds to tavaborole and AN2728, respectively, and AN3365 (formerly known as GSK2251052, or GSK ‘052), a systemic antibiotic for the treatment of infections caused by Gram-negative bacteria, which previously was licensed to GlaxoSmithKline LLC, or GSK. GSK will be returning all rights to the compound to us and we are considering our options for further development, if any, of this compound. We have discovered two other compounds that we have out-licensed for further development — AN8194, a compound for the treatment of an animal health indication that is licensed to Eli Lilly and Company, or Lilly, and AN5568, also referred to as SCYX-7158, for human African trypanosomiasis (HAT, or sleeping sickness), which is licensed to Drugs for Neglected Diseases initiative, or DNDi. We also have a pipeline of other internally discovered topical and systemic boron-based compounds in development. For more information, visit .

This release contains forward-looking statements, including statements regarding our milestones, clinical plans and financial projections. Our actual results may differ materially from those indicated in these forward-looking statements due to risks and uncertainties, including risks relating to patient accrual, execution on clinical plans and timing of data availability and NDA filing for tavaborole; the potential for success of tavaborole and our AN2728 compound, the size of the markets in onychomycosis, atopic dermatitis and psoriasis; the decision and timing of any further development of AN3365; financial projections related to our cash balance and use of cash, and other matters that are described in Anacor’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, including the risk factors set forth in that filing. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and we undertake no obligation to update any forward-looking statement in this press release.