Anacor Pharmaceuticals Secures $45 Million Loan Facility

  Anacor Pharmaceuticals Secures $45 Million Loan Facility

Business Wire

PALO ALTO, Calif. -- June 12, 2013

Anacor Pharmaceuticals (NASDAQ: ANAC) announced today that it has entered into
a loan agreement with Hercules Technology Growth Capital, Inc. (NYSE: HTGC)
(“Hercules”) for up to $45.0 million in new capital to be distributed in three
tranches.

Anacor borrowed the first tranche of $30.0 million upon the execution of the
loan agreement on June 7, 2013 and used approximately $22.6 million to repay
the remaining obligations under its loan agreement with Oxford Finance LLC and
Horizon Technology Finance Corporation. Anacor expects to use the remainder of
the funding for filing its New Drug Application (“NDA”) for tavaborole,
conducting additional clinical studies of AN2728 and for general working
capital. The second tranche of $10.0 million is available at Anacor’s
discretion through December 5, 2013, and the third tranche of $5.0 million is
available upon confirmation of the U.S. Food and Drug Administration’s (“FDA”)
approval of the tavaborole NDA through the earlier of December 15, 2014 or 30
days after the FDA approval of tavaborole.

“This financing extends our cash runway through mid-2014 and gives us
additional financial flexibility as we prepare for the outcome of our
arbitration with Valeant, continue to evaluate commercialization options for
tavaborole, and prepare for the Phase 3 development of AN2728 in atopic
dermatitis,” said Geoff Parker, Chief Financial Officer of Anacor
Pharmaceuticals.

“We are pleased to be a financing partner to Anacor,” said Chad Norman,
Managing Director at Hercules. “With its boron chemistry platform and
resultant pipeline of novel drug candidates, Anacor has the potential to
address a number of difficult to treat conditions.”

The funding is in the form of secured indebtedness bearing interest at a
calculated prime-based variable rate of between 11.65% and 14.90%. Payments
under the loan agreement are interest only until January 1, 2015 (or if the
FDA approves tavaborole on or before December 15, 2014, the interest only
period is extended to July 1, 2015), followed by equal monthly payments of
principal and interest through the scheduled maturity date on July 1, 2017. In
connection with the loan agreement, Anacor issued Hercules warrants, which are
exercisable for 528,375 shares of Common Stock at a per share exercise price
of $5.11.

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, 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 wholly-owned clinical product
candidates — AN2718 and AN2898, which are backup compounds to tavaborole and
AN2728, respectively, and AN3365 (formerly known 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 discovered
three other compounds that we have out-licensed for further development — two
compounds for the treatment of animal health indications that are licensed to
Eli Lilly and Company 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 http://www.anacor.com.

About Hercules Technology Growth Capital, Inc.

Hercules Technology Growth Capital, Inc. (NYSE: HTGC) ("Hercules") is the
leading specialty finance company focused on providing senior secured loans to
venture capital-backed companies in technology-related markets, including
technology, biotechnology, life science and cleantech industries at all stages
of development. Since inception (December 2003), Hercules has committed more
than $3.6 billion to over 230 companies and is the lender of choice for
entrepreneurs and venture capital firms seeking growth capital financing.
Hercules' common stock trades on the New York Stock Exchange (NYSE) under the
ticker symbol "HTGC." In addition, Hercules has two outstanding bond issuances
of 7.00% Senior Notes due 2019—the April 2019 Notes and September 2019
Notes—which trade on the NYSE under the symbols "HTGZ" and "HTGY,"
respectively. Companies interested in learning more about financing
opportunities should contact info@htgc.com, or call 650.289.3060.

Forward-Looking Statements

This press release may contain forward-looking statements that relate to
future events including the potential FDA approval of tavaborole, future
clinical studies of AN2728, timing of the outcome of our arbitration with
Valeant, and the availability of the future tranches under the loan agreement
with Hercules. 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, including risks related to
regulatory approval of new drug candidates, enrollment and successful
completion of our trials and the risk of unforeseen side effects. Reference
should be made to Anacor’s Annual Report on Form 10-K for the year ended
December 31, 2012 filed with the Securities and Exchange Commission under the
heading “Risk Factors” and Anacor’s subsequent Quarterly Reports on Form 10-Q
for a more detailed description of such factors. 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.

Contact:

Anacor Pharmaceuticals, Inc.
DeDe Sheel, 650-543-7575
Director, Investor Relations and Corporate Communications
 
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