This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Anacor Falls On Positive But Disappointing Toenail Fungus Data

Stocks in this article: ANAC VRX

PALO ALTO, Calif. ( TheStreet) -- Anacor Pharmaceuticals' (ANAC - Get Report) toenail fungus therapy tavaborole achieved the "complete cure" goal of a phase III study but the drug's efficacy appears to be inferior to a competing drug from Valeant Pharmaceuticals (VRX - Get Report) and only on par with a currently approved treatment.

Shares of Anacor are down 25% to $3.84 in early Tuesday trading on the positive (but still disappointing) tavaborole study results.

In the phase III study of 600 patients with toenail fungus (onychomycosis), 6.5% of patients treated with tavaborole achieved a complete cure compared to 0.5% of patients treated with an alcohol-based delivery vehicle (essentially the placebo.) The 6% control-adjusted difference in cure rate favoring tavaborole was statistically significant and met the primary endpoint of the study.

Complete cure was defined as the percentage of patients in each arm who were fungus free (mycologic cure) plus had completely clear nails after 52 weeks of treatment.

While Anacor's phase III study was successful, tavaborole appears to be less or equally effective as competing and current treatments for toenail fungus.

In two phase III studies recently published, Valeant's efinaconazole demonstrated complete cure rates of 17.8% and 15.2% compared to placebo rates of 3.3% and 5.5%. Valeant used the same definition of complete cure as Anacor is using for its phase III studies. The FDA is currently reviewing efinaconazole, with an approval decision date of May 24.

The other relevant comp is Penlac, currently the only approved topical treatment for toenail fungus. Penlac's complete cure rate is in the 5-8% range, according to the drug's FDA-approved label. That's similar to the tavaborole cure rates reported today by Anacor.

Anacor is conducting a second phase III study of tavaborole. Results are expected in March.

-- Reported by Adam Feuerstein in Boston.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs