Anacor Pharmaceuticals Provides Update Regarding Arbitration With Valeant Pharmaceuticals

  Anacor Pharmaceuticals Provides Update Regarding Arbitration With Valeant

Business Wire

PALO ALTO, Calif. -- May 2, 2013

Anacor Pharmaceuticals (NASDAQ:ANAC) today announced that Valeant
Pharmaceuticals International,Inc., or Valeant, has agreed that the launch of
efinaconazole, its topical product candidate for the treatment of
onychomycosis, will not occur until after the September 2013 arbitration
hearing to resolve our breach of contract dispute with Valeant. As a result,
the preliminary injunction hearing which was scheduled for May 6-8, 2013 has
been canceled.

As previously disclosed, in October 2012, we provided notice to Valeant,
successor in interest to Dow Pharmaceutical Sciences,Inc., or DPS, seeking to
commence arbitration with JAMS of a breach of contract dispute under a master
services agreement dated March26, 2004 between DPS and us related to certain
development services provided by DPS in connection with our efforts to develop
tavaborole, our topical antifungal product candidate for the treatment of
onychomycosis. We have asserted claims for breach of contract, breach of
fiduciary duty, intentional interference with prospective business advantage
and unfair competition. We are seeking injunctive relief and damages of at
least $215.0million. The final arbitration hearing is currently scheduled for
September 2013, and we expect the resolution of the arbitration to occur in
the second half of 2013. We have carefully reviewed our position and believe
that we have meritorious claims; however, we will need to prove such claims in
the arbitration hearings.

About Anacor Pharmaceuticals

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

Forward-Looking Statements

This press release may contain forward-looking statements that relate to
future events including our arbitration with Valeant Pharmaceuticals
International, Inc. These forward looking statements involve known and unknown
risks, uncertainties and other factors that could cause actual levels of
activity, performance or achievement to differ materially from those expressed
or implied by these forward-looking statements. These statements reflect the
views of Anacor as of the date of this press release with respect to future
events and, except as required by law, it undertakes no obligation to update
or revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise after the date of this press release.


Anacor Pharmaceuticals
DeDe Sheel, 650-543-7575
Director, Investor Relations and Corporate Communications
Press spacebar to pause and continue. Press esc to stop.