Loss at Anacor Pharma Narrower-Than-Expected

Anacor Pharmaceuticals, Inc. (ANAC) reported fourth-quarter 2012 net loss per share of 36 cents, narrower than the Zacks Consensus Estimate of a loss of 44 cents and the year-ago loss of 52 cents per share.

Fourth-quarter revenues were $3.3 million, compared with $2.6 million in the year-ago quarter. Revenues edged past the Zacks Consensus Estimate of $3 million.

In fourth quarter 2012, research and development expenses fell 13.8% year over year to $12 million. The decrease was driven by lower clinical trial activity of tavaborole. Selling, general and administrative expenses fell 3.7% year over year to $2.8 million in the reported quarter.

In Dec 2012, Anacor Pharma announced the achievement of the second development candidate in its animal health collaboration with Eli Lilly and Company (LLY). As per the agreement, Anacor Pharma received a payment of $1 million for this milestone. Additionally, the company is eligible to receive development and regulatory milestones as well as tiered royalties.

Full-year 2012 net loss per share was $1.76, narrower than the Zacks Consensus Estimate of a loss of $1.82 but wider than the year-ago loss of $1.71 per share. Revenues in 2012 were $10.7 million, compared with $20.3 million in 2011. Revenues for 2012 narrowly missed the Zacks Consensus Estimate of $11 million.

Pipeline Update

Apart from releasing financial results, Anacor Pharma also provided an update on its pipeline. In the first quarter of 2013, the company 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.

Moreover, Anacor Pharma expects data from the ongoing phase II dose-ranging study in adolescents for its atopic dermatitis candidate, AN2728, shortly.

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