Anacor Pharmaceuticals

Anacor Pharmaceuticals Inc. of < ?XML:NAMESPACE PREFIX = ST1 />Palo Alto, Calif. has entered into an agreement with Schering-Plough Corp. for the development and commercialization of AN2690, a topical anti-fungal therapy currently in Phase 2 clinical trials for onychomycosis, a fungal infection of the nail and nail bed. Under terms of the agreement, Anacor will receive a $40 million upfront payment and a $10 million financing commitment from Schering-Plough. The company is eligible to receive payments potentially exceeding $575 million for development, regulatory and commercial milestones. In addition, Anacor will receive double-digit royalty payments on future sales. Schering-Plough will assume all costs for the drug’s development for onychomycosis and other indications, and Anacor retains an option to co-promote the drug in the United States to dermatologists. Anacor has raised around $32 million in VC funding from Aberdare Ventures, Rho Ventures, Care Capital, Red Abbey Venture Partners and Venrock Associates.