Anacor Pharmaceuticals (NASDAQ:ANAC) announced today that it has entered into a loan agreement led by Oxford Finance Corporation and partnered with Horizon Technology Finance Corporation to provide up to $30 million in capital. Anacor used $6.6 million to repay the remaining obligations under its loan agreement with Lighthouse Capital Partners and expects to use the remainder of the capital to fund development activities related to AN2690, AN2728 and AN2898.
"Our late-stage clinical trials are progressing rapidly. Our Phase 2b trial for AN2728 to treat psoriasis enrolled more quickly than we had anticipated, and our Phase 3 trials for AN2690 to treat onychomycosis remain on track to complete enrollment in the second half of this year," said Geoff Parker, Anacor's Senior Vice President and Chief Financial Officer. "As we also prepare for our upcoming Phase 2 trial to evaluate AN2728 and AN2898 for the treatment of atopic dermatitis, this transaction provides Anacor with a significant amount of funding at an attractive cost of capital to help achieve our research and development goals and provides additional financial flexibility while managing shareholder dilution."
The $30 million loan agreement is structured in three tranches of $10 million each. The first tranche of $10 million was drawn upon closing of the transaction. The second and third tranches totaling $20 million are available upon the achievement of either the full enrollment of the Phase 3 trials for AN2690 or the initiation of a Phase 3 trial for AN2728. Anacor currently expects to achieve these development milestones by the end of 2011.
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