Encouraging Data on Anacor's AN2728

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Anacor Pharmaceuticals, Inc. (ANAC) recently announced positive results from a phase II dose-ranging study conducted in adolescents for its atopic dermatitis candidate, AN2728.

The randomized, double-blind, bilateral phase II study enrolled 86 adolescents with mild-to-moderate atopic dermatitis. For 28 days, the subjects were randomized 1:1 on either a once daily (:QD) or twice daily (BID) regimen.

A 71% improvement from baseline on the Atopic Dermatitis Severity Index (:ADSI) score was achieved by lesions treated under the AN2728 2.0% BID regimen, while 66% of lesions achieved total or partial clearance. Overall, the study showed that AN2728 is safe and well tolerated.

Anacor Pharma expects to start a phase III program with the 2.0% BID dosing regimen by the end of 2013.

A few weeks back, the company had announced positive results from two phase III studies on its topical antifungal candidate, tavaborole (AN2690). The studies, 301 and 302, evaluated the candidate for the prevention of onychomycosis. They were conducted under the US Food and Drug Administration’s (:FDA) Special Protocol Assessment (SPA) program. Anacor Pharma intends to seek US approval for the candidate in the indication in mid-2013.

Our Take

We are encouraged by the pipeline progress at Anacor. We expect investor focus to remain on the regulatory filing for AN2690 as well as the initiation of late-stage studies on AN2728.

Anacor Pharma carries a Zacks Rank #3 (Hold). Currently, companies like Lannett Company, Inc. (LCI), WuXi Pharma Tech (Cayman) Inc. (WX) and QLT Inc. (QLTI) look more attractive in the pharma space with a Zacks Rank #1 (Strong Buy).

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