Anacor Pharmaceuticals, Inc. (ANAC) reported third quarter 2013 net loss per share of 41 cents, wider than the Zacks Consensus Estimate of a loss of 36 cents but narrower than the year-ago loss of 46 cents per share.
Third quarter revenues were $3.6 million, compared with $2.5 million in the year-ago quarter. Revenues beat the Zacks Consensus Estimate of $3 million.
Research and development expenses fell 8.1% year over year to $12.5 million. The decline was due to lower clinical expenses for tavaborole.
Selling, general and administrative expenses increased 147.5% year over year to $6.8 million, primarily driven by higher legal fees related to disputes with Valeant Pharmaceuticals International, Inc. (VRX) and marketing activities for tavaborole.
Anacor’s pipeline includes several topical candidates including an anti-fungal onychomycosis candidate, tavaborole. In Jul 2013, Anacor submitted a New Drug Application (:NDA) for tavaborole to the U.S. Food and Drug Administration (:FDA) for the prevention of onychomycosis. The FDA accepted Anacor’s NDA in Oct 2013. With the FDA accepting the NDA, a response regarding tavaborole should be out by Jul 29, 2014. Anacor intends to launch tavaborole in the second half of 2014 assuming FDA approval.
In Jul 2013, Anacor commenced the MUSE (maximal use systemic exposure) study in children to evaluate the effects of its atopic dermatitis candidate, AN2728. Anacor started a TQT (thorough QT) study on the candidate in Aug 2013. Results from both studies are expected by year end. For AN2728, a phase III study in atopic dermatitis will start in the first half of 2014, depending on the completion of the MUSE and TQT studies.
In Oct 2013, Anacor inked a deal with the United States Department of Defense, Defense Threat Reduction Agency (:DTRA) to design and discover new classes of systemic antibiotics for a time period of three and a half years.
Anacor reached an agreement with Valeant relating to the breach of contract disputes with Dow Pharmaceutical Sciences, Inc. and Medicis Pharmaceutical Corporation in Oct 2013. Valeant paid $142.5 million to settle both the disputes with Anacor on Nov 7, 2013. Valeant acquired Dow Pharma in Dec 2008 and Medicis in Dec 2012.
The company expects to end the year with cash, cash equivalents and short-term investments of at least $160 million. This includes the arbitration proceeds from Valeant.