SCHERING-PLOUGH ENTERS DEAL TO SELL ANACOR'S FUNGUS TREATMENT

Anacor will receive $40 million as an upfront payment from an exclusive agreement with Schering-Plough to develop and sell a topical antifungal therapy, the company said.

In addition to the upfront payment, Anacor has a $10 million financing commitment with Schering-Plough, the company said. Anacor could also receive up to $575 million in payments for development, regulatory and commercial milestones, as well as double-digit royalty payments on future sales, the company added.

Schering-Plough will be responsible for developing and selling the drug, the company said, and Anacor has the option to co-promote the drug to dermatologists in the U.S.

Anacor's drug, AN2690, is currently in three Phase II clinical trials for onychomycosis, a fungal nail and nail bed infection, the company said.

The deal is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act, but should close in the first quarter of 2007, Anacor said.