The drug, AN2690, is designed to treat onychomycosis, a fungal infection of the nail and nail bed, that affects seven to 10% of the US population.
Under the terms of the agreement, Anacor will receive a $40 million upfront payment and a $10 million financing commitment from Schering-Plough. The company is eligible to receive payments potentially exceeding $575 million for development, regulatory and commercial milestones.
In addition, Anacor will receive royalty payments on future sales. Schering-Plough will assume all costs for the drug’s development and Anacor retains an option to co-promote the drug in the US.
AN2690 is currently being evaluated in three fully-enrolled phase II studies. Results to date have shown that the drug is well tolerated and highly potent, with patients who received the treatment demonstrating significant clear nail growth.