Anacor Pharmaceuticals Inc. (ANAC) reported fourth quarter 2013 net loss per share of 23 cents, narrower than the year-ago loss of 36 cents per share. The Zacks Consensus Estimate was earnings of $1.34 per share.
Fourth quarter revenues were $8.5 million, compared with $3.3 million in the year-ago quarter. Revenues beat the Zacks Consensus Estimate of $3 million. Revenues comprised solely of contract revenues. The increase was mainly driven by recognition of deferred revenue worth $4.8 million under the Medicis agreement as a result of the termination of the agreement in Oct 2013.
Research and development expenses rose 6.6% year over year to $12.8 million. General and administrative expenses increased 46.2% year over year to $4.0 million.
Full-Year Details
Anacor reported full year 2013 loss of $1.35 per share, narrower than the 2012 loss of $1.76 per share. The Zacks Consensus Estimate was earnings of 21 cents per share.
Full year revenues were $17.3 million, up 60.4% from 2012. Revenues beat the Zacks Consensus Estimate of $11 million. Revenues increased due to research work performed under agreements with the Gates Foundation and Defense Threat Reduction Agency (DTRA) and the recognition of the remaining deferred revenue under the Medicis agreement.
Pipeline Update
Anacor’s pipeline includes several topical candidates including an anti-fungal onychomycosis candidate, Kerydin. The U.S. Food and Drug Administration (FDA) accepted Anacor’s New Drug Application (NDA) for the prevention of onychomycosis in Oct 2013. With the FDA accepting the NDA, a response regarding Kerydin should be out by Jul 29, 2014. In second quarter 2014, FDA will conduct a late-cycle review meeting with Anacor to discuss the status of the application. Anacor intends to launch Kerydin in the second half of 2014 assuming FDA approval.
Another interesting candidate in Anacor’s pipeline is AN2728 for the treatment of mild-to-moderate atopic dermatitis and psoriasis. Anacor will commence two phase III studies of AN2728 in mild-to-moderate atopic dermatitis patients within the next 45 days and a long-term safety study to evaluate the safety of intermittent use of AN2728 for up to 12 months. Potential filing of the NDA is expected in the second half of 2015.
Anacor carries a Zacks Rank #3 (Hold). Investors looking for better-ranked stocks in the biopharma sector may consider companies like Gilead Sciences Inc. (GILD), Shire (SHPG) and Questcor Pharmaceuticals Inc. (QCOR), all of which carry a Zacks Rank #1 (Strong Buy).
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