Deutsche Says Anacor (ANAC) Tavaborole Numbers are Solid, Hinges on 2nd Phase 3 Results

January 29, 2013 1:12 PM EST
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Anacor Pharmaceuticals (Nasdaq: ANAC) is getting slammed amid new tavaborole phase 3 data, the Company's key pipeline candidate for the treatment of onychomycosis (nail fungus).

Deutsche Bank issued comments on the results. The firm said, "By comparison, Penlac – the first and only approved topical treatment for this indication – achieved peak sales of $300M on a worldwide basis ($120M in the US) prior to the loss of exclusivity in 2006, despite a 5.5-8.5% clinical cure rate (40% mycological cure rate) and a restrictive label, which required debridement as adjunctive therapy. As for perhaps the most important comparator, Valeant recently reported clinical cure rate of 15.2- 17.8% (mycological cure rate of 23.4-26.4%) in its Ph 3 topical onychomycosis program for IDP-108 (efinaconazole, May 26 FDA action date), which is approximately a year ahead of tavaborole in development. Hence, while not exactly apples-to-apples – given different patient inclusion criteria – Valeant’s clinical cure looks better but Anacor’s mycological cure rate looks superior."

On its call, Anacor said that the patient population may have been older and less healthy versus Valeant's (NYSE: VRX) phase 3 trials. The first phase 2 also took place in the U.S. and Mexico, with Mexico providing weaker results during the phase 2 trials of tavaborole. The second phase 3 will take place in the U.S and Canada.

Deutsche also said that if the second phase 3 has similar results to the first, tavaborole should be commercially viable.

Deutsche has a Buy rating on Anacor with price target of $11.

For an analyst ratings summary and ratings history on Anacor Pharmaceuticals click here. For more ratings news on Anacor Pharmaceuticals click here.

Shares of Anacor Pharmaceuticals closed at $5.17 yesterday.

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